UAE NRI buying and selling property in India: the simplest NRI property case
UAE NRIs have the simplest India property tax situation among all NRI groups. The UAE levies no personal income tax — so India property gains, rental income and sale proceeds do not create any UAE tax obligation. India LTCG (12.5%), buyer TDS (12.5%) and rental income rules apply in full. The UAE-India DTAA does not add complexity since there is no UAE-side tax to credit. UAE NRIs can repatriate up to USD 1 million per year via NRO.
No UAE tax on India property — only India LTCG at 12.5% and buyer TDS apply
UAE NRIs face no UAE-side tax on India property gains, rental income or sale proceeds — the UAE has no personal income tax. India's rules apply in full: LTCG at 12.5% (property held 24+ months), buyer TDS at 12.5% of sale consideration, rental income TDS by tenant at 31.2%. Repatriation of sale proceeds from NRO is allowed up to USD 1 million per year with proper documentation (Form 15CA/15CB). The UAE-India DTAA is largely irrelevant for individuals since the UAE levies no personal income tax.
Key points
- No UAE personal income tax — India rules apply fully — UAE levies no personal income tax, so India property gains are taxed only in India. No double-tax complexity.
- India LTCG at 12.5%, buyer TDS at 12.5% — Property held 24+ months: 12.5% LTCG without indexation (from FY 2024-25). Buyer must deduct TDS at 12.5% of full sale value before registration.
- Repatriation: NRO to UAE account, USD 1 million/year — Net proceeds go to NRO; repatriation to UAE bank account requires Form 15CA/15CB and is capped at USD 1 million per year per the RBI FEMA limit.
Buying India property as a UAE NRI
Eligible properties: NRIs can buy residential and commercial property in India. No special RBI permission is needed. Agricultural land and plantation property require special RBI permission.
Payment: from NRE or NRO account, or via inward remittance from UAE. No payment in foreign currency cash — must be through banking channels.
Home loan: UAE NRIs can take an NRI home loan from Indian banks. EMI can be paid from NRE/NRO. See the NRI home loan guide.
Power of Attorney: UAE NRIs often execute a POA at the Indian consulate in Dubai/Abu Dhabi to allow a trusted person in India to handle property registration.
Selling India property as a UAE NRI
LTCG calculation: Sale consideration minus cost of acquisition (original purchase price or FMV as of April 1, 2001, whichever is higher for old properties). No indexation from FY 2024-25.
54EC exemption: Invest gains in REC or NHAI bonds within 6 months of sale — up to ₹50 lakh exemption.
54F exemption: Invest full sale consideration in a new residential property within 2 years (purchase) or 3 years (construction).
Net proceeds to NRO: receive net of TDS in NRO account. Repatriate to your UAE account after filing ITR and obtaining bank's Form 15CA/15CB.
Frequently asked questions
Do I need a UAE tax clearance certificate to repatriate property proceeds?
No. UAE does not require a tax clearance since there is no personal income tax. The Indian side requires Form 15CA and 15CB (signed by a CA) certifying India tax compliance before the bank remits funds to your UAE account.
Can I remit more than USD 1 million in a year if I sell multiple properties?
The USD 1 million RBI limit applies per NRO account per financial year. If you have multiple properties sold in the same year with proceeds exceeding USD 1 million, you can repatriate the balance in the next financial year, or consult the RBI for a case-by-case approval for larger amounts.
Is AED or USD the right currency to receive in UAE after property sale?
You can receive the remittance in USD, AED or any currency — your UAE bank will convert. To minimize conversion losses, receive in USD first and convert to AED only when you need the funds. Track the USD/INR rate for optimal timing.