For millions of Indians in Dubai, property back home is part of the plan: a flat in Pune for retirement, a plot in Kerala, a parent’s house to sell. Managing NRI property in India from Dubai means dealing with foreign exchange rules, tax deductions, banks, registrars and, sometimes, unscrupulous builders and relatives, all from 2,000 kilometres away.
This guide explains what NRIs can buy in India, how to pay, how tax is deducted when you sell, how to reduce that deduction, how much of the sale proceeds you can send back to the UAE, and how to avoid the property frauds that target NRIs.
What NRIs can and can’t buy
Under India’s foreign exchange rules, non-resident Indians and overseas citizens of India can generally buy residential and commercial property in India. They can’t buy agricultural land, plantation property or farmhouses, except by inheritance or with specific approval. Inherited property of any kind can be held.
Payment must come through normal banking channels: funds remitted from abroad, or money in NRE, FCNR or NRO accounts in India. Paying in cash, or through informal channels, creates problems with registration, tax and later repatriation. Home loans from Indian banks are available to NRIs, subject to the bank’s criteria.
For NRI property purchases in new projects, check RERA registration and the builder’s delivery record carefully, because delayed possession is one of the most common complaints from NRIs in Dubai. Before buying, do proper due diligence: title search, encumbrance certificate, approved building plans, RERA registration for new projects, and the developer’s track record. Indian property disputes often begin with title problems that a search would have revealed.
TDS when an NRI sells property
When an NRI sells property in India, the buyer must deduct tax at source on the sale. For non-resident sellers, the deduction is generally made at the rate applicable to the capital gain, with surcharge and cess, and it applies to the sale consideration rather than just the gain unless a lower deduction is authorised. That often means a much larger deduction than the seller’s actual tax.
The India-UAE tax treaty generally allows India to tax gains on property situated in India, and since the UAE doesn’t tax individuals on such gains, the Indian tax is usually the final cost. Long-term capital gains on property held for more than 24 months are generally taxed at 12.5% without indexation following the 2024 changes, with transitional rules for property acquired earlier that may not be available to every category of taxpayer. Short-term gains are taxed at the seller’s slab rate.
The solution to excessive deduction is a lower or nil deduction certificate from the Indian tax department, applied for before the sale. With the certificate, the buyer deducts tax only on the actual estimated gain. Planning this two to three months before the sale avoids having large amounts locked up until a refund comes through.
| Topic | Position |
|---|---|
| What an NRI can buy | Residential and commercial property; not agricultural land, plantation property or farmhouses, except by inheritance or with approval |
| TDS on sale | Buyer deducts at the capital gains rate, with surcharge and cess, on the whole sale consideration unless a lower deduction certificate is obtained |
| Long-term gains | Property held more than 24 months: generally 12.5% without indexation after the 2024 changes, with transitional rules for earlier purchases |
| Short-term gains | Taxed at the seller’s slab rate |
| Repatriation | Property bought with foreign exchange: generally up to the original foreign-exchange amount; other proceeds via an NRO account, up to US$1 million a year with a chartered accountant’s certificate |
Sending sale proceeds back to Dubai
Plan the currency conversion too: the rupee-dirham rate on the day of remittance can make a meaningful difference to the amount that reaches your UAE account. Repatriation depends on how the property was bought and which account the proceeds land in. Sale proceeds of property bought with foreign exchange, through inward remittances or NRE or FCNR funds, can generally be repatriated up to the amount originally paid in foreign exchange, subject to limits on the number of residential properties.
Other proceeds, including from inherited property or property bought with rupee funds, are generally credited to an NRO account. NRIs can remit up to US$1 million per financial year from NRO accounts for bona fide purposes, including sale proceeds of assets, subject to tax compliance and the bank’s documentation requirements, typically including a chartered accountant’s certificate and an undertaking.
NRI property sales often involve buyers who are unfamiliar with NRI TDS rules, so it helps to explain the requirement early and to share the lower deduction certificate with the buyer before registration. Keep the paper trail: sale deed, TDS certificates, tax return showing the gain, and bank records. The bank will need them to process the remittance to your UAE account.
Acting from Dubai and avoiding fraud
Most NRIs in Dubai act through a trusted person in India using a power of attorney. Because the UAE isn’t a party to the Hague Apostille Convention, a power of attorney signed in the UAE generally needs attestation by the UAE Ministry of Foreign Affairs and the Indian Embassy or Consulate before use in India (Advocate Anakha). It must then be stamped in India within three months of arrival (NRI Information).
Rental NRI property needs particular care: written leave and licence agreements, registered where required, and tenant verification reduce the risk of tenants refusing to leave. Property fraud targeting NRIs is a well-known problem: forged sale deeds, misuse of wide powers of attorney, encroachment on vacant plots, and relatives or caretakers selling or leasing property without consent. Grant only the powers needed, for a specific property and purpose, monitor land records and property tax payments, and visit or arrange inspections regularly.
The Supreme Court has also made clear in Suraj Lamp and Industries v. State of Haryana (2011) that sales through general powers of attorney, agreements to sell or wills don’t transfer title to immovable property. A registered sale deed is required, so NRIs should never rely on informal arrangements for buying or selling.
Disputes and remedies
Before suing, a legal notice from an Indian lawyer often resolves disputes with builders, tenants and encroachers, especially when it sets out clear deadlines and the remedies that will follow. When things go wrong with NRI property, Indian law offers remedies: civil suits for possession, injunctions and cancellation of fraudulent documents; complaints to the Real Estate Regulatory Authority against builders who delay or fail to deliver; consumer complaints; and criminal complaints for forgery, cheating and criminal trespass where the facts support them. Most can be pursued from Dubai through a lawyer and a power of attorney holder, with video hearings increasingly available. The key is to act quickly, because delay makes encroachment and possession disputes harder, and limitation periods apply. With good planning, NRI property in India can be bought, held and sold safely from Dubai.
Related reading: a power of attorney from Dubai for Indian property, a bank account frozen after a P2P crypto trade, crypto inheritance for NRIs in Dubai, UK-based NRIs and Indian property, tokenized real estate in Dubai and why India may still tax Indians in Dubai on crypto.
Quick answers
Can NRIs in Dubai buy agricultural land in India?
Generally not, except by inheritance or with specific approval. Residential and commercial property can usually be bought.
How much tax is deducted when an NRI sells property?
TDS is generally deducted at the capital gains rate on the sale amount, unless the NRI obtains a lower deduction certificate before the sale.
How much of the sale proceeds can I send to Dubai?
Generally up to US$1 million per financial year from an NRO account, subject to tax compliance and documentation, or the original foreign-exchange amount for property bought with foreign funds.
What is a lower deduction certificate?
A certificate from the Indian tax department, applied for before the sale, that lets the buyer deduct tax only on the actual estimated gain instead of on the whole sale consideration. Plan for it two to three months before the sale.
Does a power of attorney or agreement to sell transfer title in India?
No. In Suraj Lamp and Industries v. State of Haryana (2011), the Supreme Court made clear that sales through general powers of attorney, agreements to sell or wills do not transfer title to immovable property. A registered sale deed is required.
Final word
Halverton & Co. is an Indian law firm advising NRIs, founders, investors and businesses in Dubai and across the UAE on Indian law, including NRI property purchases and sales, title due diligence, TDS planning, repatriation and property disputes. We practise in Jharkhand, Maharashtra and before the Supreme Court of India, and work alongside UAE-licensed counsel, who advise on UAE law. Halverton & Co.: Where tech needs law! If you have a question about Indian law, write to us at office@halvertonandco.com, or get in touch.
This article reflects developments reported up to early October 2026. It is for general information only, is not legal advice, and does not create an advocate-client relationship. Halverton & Co. is an Indian law firm and does not advise on UAE law; UAE-law points should be confirmed with UAE-licensed counsel.
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