05/08/2026
Your Dubai property purchase might be illegal, and you won't find out until RBI does.
If you're resident in India, here's what most agents won't tell you:
❌ You cannot take a mortgage from a UAE bank. Under FEMA 3(R)/2018-RB, a resident individual borrowing in foreign currency needs specific RBI permission.
❌ "But it's secured against the property" doesn't help. Mortgaging an overseas asset to a foreign lender IS overseas borrowing.
❌ Developer EMI and post-handover payment plans can be read the same way.
❌ The ECB route covers companies and LLPs. Not individuals.
✅ The compliant path is self-funding under LRS, USD 250,000 per person, per financial year. Family members can pool, but only if everyone remitting is a named co-owner on the title.
⚠️ The money must be yours. You cannot take a loan in India to fund an LRS remittance.
⚠️ TCS applies once your total remittances cross ₹10 lakh in a year, across all purposes combined, not just property.
Narrow exceptions exist: property acquired while you were non-resident (FEMA s.6(4)), inheritance or gift from a non-resident, a loan from a non-resident close relative, or specific RBI approval.
And residency is decided by days in India. Not your passport. Not your intent.
I'm a property consultant, not a tax lawyer, if you're mid-transaction, run your exact structure past a FEMA-specialist CA before you sign anything.
Save this before your next Dubai viewing. 🔖
