Explore Global Capital Investment Opportunities With This Perfect Guide

Akash Soni
Dec 16, 2025
3 min read

Eyeing a Dubai sky-suite or a beachfront villa in Abu Dhabi? Here’s a sharp, investor-focused walkthrough of the financial rules, remittance limits, mortgage access and structural considerations that shape cross-border luxury real-estate purchases. This guide is crafted for high-net-worth individuals aiming for clarity and compliance in global capital allocation.

1. LRS - India’s Primary Channel for Overseas Investments

The Liberalised Remittance Scheme (LRS) is the framework through which Indian residents can legally transfer money outside India for specific purposes - investments, education, travel, gifts and select property acquisitions.

The current upper limit is USD 250,000 per individual per financial year (April - March). This cap covers all outward remittances combined, meaning every transfer counts towards the same ceiling. For high-value luxury deals in the Dubai real estate market that exceed the LRS threshold, investors typically rely on structured solutions - foreign holding companies, joint ventures or staggered payments. These approaches demand stronger compliance, paperwork and may have additional tax implications.

2. TCS on Overseas Remittance - An Upfront Cash Flow Consideration

India levies Tax Collected at Source (TCS) on certain categories of foreign remittances. The rates differ based on the nature of the remittance - education and medical payments often attract lower TCS, while other remittances may incur higher rates once annual limits are crossed.

TCS is deducted by your bank at the time of remittance and later adjusted against your total tax liability; excess TCS is refundable. TCS temporarily reduces your available liquidity. For luxury real-estate transfers, factor this additional upfront outlay into your transaction planning - even if the amount is recoverable later.

3. UAE Mortgages – Leveraged Buying for Global Investors

Foreign nationals who do not reside in the UAE can still access mortgage financing there, though the lending norms are more conservative compared with local residents.

Typical expectations for non-residents:

Down payment: ~25–35% for initial purchases; sometimes 40%+ for investment-focused properties
Loan-to-Value (LTV): Often capped around 60–65%
Property must be within approved freehold zones and sourced from recognized developers

Indian Comparison:

In India, resident borrowers frequently secure higher LTVs (70–90%) with longer tenures. However, Indian banks generally do not allow residents or NRIs to borrow domestically to purchase foreign property due to FEMA limitations.

In contrast, the UAE offers a straightforward mortgage pathway, albeit with stricter parameters - making it a useful leverage tool for luxury investors who prefer not to deploy full equity.

4. Strategic Synthesis – Navigating the India → UAE Luxury Investment Route

Here’s how the regulatory pieces come together for premium cross-border property investments.

Capital Movement (LRS + TCS)

Investments abroad must remain within the USD 250k LRS limit per person each year. For large-ticket acquisitions, investors often phase transfers across years or utilise multiple family members’ limits.

Leverage Opportunities in the UAE

UAE mortgages allow investors to optimise yield by borrowing strategically, especially in a tax-efficient environment. Expect tighter screening criteria and larger down payments compared with Indian home loans.

Choosing the Right Ownership Framework

Understanding freehold vs leasehold zones in the UAE and selecting between personal or corporate ownership structures can influence control, resale value and compliance responsibilities.

Tax Transparency & Reporting

Even though the UAE imposes minimal tax on property income, Indian residents must declare overseas assets and rental earnings in India. Meanwhile, Indian real-estate holdings involve higher friction - capital gains tax, stamp duty, TDS on rent and more.

Yield & Growth Comparison

Dubai’s property sector often delivers 7–10%+ rental yields with lighter taxation, whereas residential yields in major Indian cities usually sit between 2–5%.

Conclusion

Investing in UAE luxury real estate from India blends global diversification with structured planning. The outward remittance regime (LRS + TCS), UAE’s mortgage ecosystem, ownership frameworks and comparative yields collectively shape your net returns.

SÀWAI CAPITAL specialises in high-quality private credit and global structured investment solutions. Connect with us to explore bespoke capital investment opportunities across markets.

Frequently Asked Questions (FAQs)

1. What is LRS?

LRS permits Indian residents to remit up to USD 250,000 annually for approved purposes, including property purchases abroad, making it the regulatory foundation for any cross-border investment.

2. Can I combine my family’s LRS limits for a larger overseas purchase?

Yes. Many investors legally distribute payments across spouses and adult children to increase overall remittance capacity for significant luxury investments.