Modon Properties

Buying Abu Dhabi property from India: LRS, TCS and tax

In short

Resident Indians can buy property abroad under the Liberalised Remittance Scheme, up to USD 250,000 per person per financial year. Remittances above ₹10 lakh a year attract 20% TCS, which is not an extra cost: it is credited against your income tax or refunded. The property must be disclosed in Schedule FA of the income tax return, and rent is taxable in India for residents. NRIs paying from income earned abroad are outside LRS, and their foreign income is not taxed in India.

USD 250K per person per year
LRS limit
20%, adjustable against tax
TCS above ₹10 lakh
Schedule FA in ITR
Disclosure
AED 2M, approx. ₹4.7 Cr
Golden Visa threshold

Worked example: a Bashayer apartment from about AED 2.1M

  • Price: about AED 2.1M, approx. ₹4.9 Cr or USD 572K.
  • That is more than one person's annual LRS limit, so couples commonly buy jointly and each remits up to USD 250K.
  • The payment plan spreads the balance across financial years, which resets each person's LRS limit every April.
  • TCS of 20% is collected on the amount above ₹10 lakh and can be claimed back through your ITR or adjusted against advance tax.
  • Clearing AED 2M can support a 10 year Golden Visa for the family.

Local currency figures are approximate, reference rate September 2026.

The LRS route for resident Indians

The bank processes the remittance on Form A2 with your PAN, citing purchase of immovable property abroad. Each family member has a separate USD 250,000 limit, which is why joint ownership with a spouse or parent is common for larger homes. Payments go straight to the developer's escrow account in the UAE.

  • • Keep the sale agreement and each milestone demand letter; the bank asks for them.
  • • LRS funds cannot generally be combined with foreign borrowing for the purchase; confirm financing with your bank and CA.

TCS: cash flow, not cost

Tax collected at source is 20% on LRS remittances above ₹10 lakh in a financial year. It appears in Form 26AS and is set off against your tax liability, or refunded when you file. Plan the cash flow, since the TCS is locked up until then.

Rent, disclosure and capital gains

Resident and ordinarily resident taxpayers include Abu Dhabi rent in their Indian income, with a 30% standard deduction on house property income. The property and any UAE bank account go in Schedule FA every year, and leaving them out risks penalties under the Black Money Act. A gain after 24 months is long-term and currently taxed at 12.5% without indexation.

NRIs in the Gulf, the UK or the US

Non-resident Indians paying from salary or savings abroad do not use LRS and pay no TCS. Their foreign rent and gains are not taxed in India, but they are taxed where they live, and the India-UAE tax treaty helps if residence status changes.

Common questions

How much can I send from India to buy property in Abu Dhabi?
Up to USD 250,000 per person per financial year under LRS. Family members can each use their own limit and buy jointly.
Is the 20% TCS an extra tax?
No. It is an advance collection credited against your income tax, or refunded when you file your return.
Do NRIs pay TCS?
No, if they pay from funds held abroad. TCS applies to remittances from India under LRS.

General information based on published rules at the time of writing, not tax or legal advice. Tax rules change; confirm your position with a qualified adviser in your country before buying.

Buyer scenarios

How buyers from India usually approach it

Illustrative examples of the questions we hear most, by type of buyer. They are not client reviews. Your own situation is confirmed on a private consultation.

Business setup

A Mumbai founder opening an Abu Dhabi company and buying a home at the same time

Should the company or should I own the property?
Indian founders expanding to the Gulf often set up a free zone or ADGM company. Indian residents buying overseas companies fall under the Overseas Direct Investment rules, which are separate from LRS residential purchases, so plan the two tracks separately. We coordinate with the company formation provider so both timelines line up.
Does buying the home give me a visa to run the business?
A property of AED 2 million or more can support a 10 year Golden Visa for you, independent of the company. The company can separately sponsor employee visas.
Bank account setup

Opening a UAE bank account from Mumbai

Do I need a UAE bank account to buy?
No. Resident Indians remit under the Liberalised Remittance Scheme, up to USD 250,000 per person each financial year. Family members can each use their own limit, and Modon's payment plans spread payments across financial years.
How do I open one for rent and service charges?
UAE banks open non-resident accounts with a passport, PAN and proof of address. Most Indian buyers pay the developer directly from India under LRS, so a UAE account mainly matters later for rent and service charges.
Guided purchase

A Indian buyer who wants every step handled remotely

What actually happens after I say yes?
You reserve with a booking form and the booking payment, sign the sale agreement digitally, and the purchase is registered with the Abu Dhabi Real Estate Centre. After that you pay by construction milestone until handover. We send a written checklist and chase every document.
Do I need to fly out?
Not to buy. Abu Dhabi is 1 hour 30 minutes behind India, so an 8pm Mumbai call is 6:30pm here. Most buyers visit once, for snagging and key collection, or appoint us under a power of attorney.
Investors and entrepreneurs

An investor in Mumbai weighing yield, payment plan and exit

Where does an investor start in the Modon catalogue?
Apartments at Tara Park, Bashayer and Nawayef Park Views are the usual entry points, from about AED 1.6 to 2.1 million. They let well and some clear the Golden Visa threshold at entry level.
Can I sell before handover?
Resale before handover depends on the developer's assignment terms and how much has been paid. We confirm the current policy for the specific project before you book.
First-time buyers abroad

A first-time overseas buyer from Mumbai

What do I pay on day one?
A booking payment, usually 10% of the price, plus the registration fee. The balance follows the construction schedule, so you are not paying the full price upfront.
Is it really freehold?
Yes. Modon homes sit in Abu Dhabi investment zones where Indian buyers get full freehold title in their own name.
Golden Visa help

A Indian family relocating on the 10 year Golden Visa

Which homes qualify?
A property value of AED 2 million or more can qualify, subject to the rules in force. Bashayer and Nawayef Park Views clear it at entry price, and every villa and mansion in the catalogue is above it.
Who is covered?
The holder, spouse and children can be sponsored. We introduce you to the visa service provider once the purchase is registered.
HNI and UHNI

A private client in Mumbai looking at AED 20 million and above

What exists at the top of the Modon range?
Hudayriyat Golf Estates villas are published up to about AED 36 million, alongside the Nawayef mansions on Hudayriyat Island.
How is a purchase at this level handled?
Mumbai and Delhi families at this level often buy a Hudayriyat or Nawayef mansion as a family seat in the Gulf. We coordinate between family members' LRS limits, the CA and the private banker. Floor plans, plot options and pricing are shared one to one.