For years, Indian investors have been among the most active and influential buyers in Dubai’s real estate market.

Tax-free rental returns, world-class infrastructure, a safe investment environment, and long-term Golden Visa opportunities have made the UAE a natural extension of India’s wealth growth story.

But as the flow of capital from India to Dubai accelerates, both governments are tightening their oversight. The result?

Indian investors must now pay closer attention to compliance, financing rules, and payment structures than ever before.

At Treysta Real Estate, we help investors not only identify the right properties but also navigate the evolving financial and legal frameworks that govern cross-border investments.

India’s Oversight Is Rising

The Income Tax Department and the Enforcement Directorate (ED) in India have intensified scrutiny on international property investments. Their focus is on ensuring that funds used abroad comply with:

• FEMA (Foreign Exchange Management Act)
• LRS (Liberalised Remittance Scheme)
• Proper source declarations for all foreign transactions

In simple terms, if you are an Indian resident investing in Dubai, every rupee that leaves India must be routed through official, authorised banking channels and must comply with both Indian and UAE laws.

Key Compliance Mistakes to Avoid

Many Indian investors unintentionally violate rules due to a lack of awareness. Here are two common pitfalls:

⿡ Using an Indian Credit Card for Property Bookings
This is strictly prohibited under FEMA guidelines. Credit cards are meant for current account transactions (like travel or shopping), not for acquiring assets abroad. Any such payment could trigger compliance red flags.

⿢ Misusing the Liberalised Remittance Scheme (LRS)
Under LRS, every Indian citizen can remit up to USD 250,000 per financial year for permissible investments, but only through authorised banks.

That means all property payments, including booking amounts, deposits, and instalments, must go through a proper bank-to-bank transfer.

Failing to do so can lead to:
• Penalties or investigations from the ED
• Complications in repatriating profits or rental income
• Delays in registering property under your name in the UAE

What’s Changing in the UAE

At the same time, the UAE has introduced new measures to bring more transparency and accountability to real estate financing.

Some of the latest updates include:
• Banks no longer finance Dubai Land Department (DLD) fees or broker commissions through mortgages. These costs must now be paid upfront by the buyer.
• Minimum down payments and transfer fees must be settled before property registration.
• Stricter documentation requirements for non-resident buyers, including proof of income and source of funds.

While these changes may add to upfront costs, they also create a healthier, more transparent investment environment, protecting genuine investors and ensuring long-term market stability.

What Smart Indian Investors Should Do

The good news? With the right strategy and structure, investing in Dubai remains one of the most profitable and secure international real estate opportunities for Indian buyers.

Here’s how to stay compliant and maximise returns:
✅ Work with authorised advisors – Partner with professionals who understand both Indian and UAE regulations.
✅ Use bank transfers only – Route all payments through official banking channels under LRS.
✅ Maintain complete documentation – Keep receipts, remittance proofs, and property registration records.
✅ Plan your ownership structure – For high-value portfolios, consider joint ownership, NRI entities, or UAE-based holding companies.
✅ Consult both sides – Coordinate with your Indian tax advisor and your Dubai property consultant before every transaction.

The Bottom Line

The UAE remains one of the most rewarding markets for Indian investors, with zero income tax, high rental yields, and exceptional lifestyle advantages.

But the days of casual cross-border payments are over.

Today’s successful investor is not just opportunistic; they are strategic, compliant, and informed.

At Treysta Real Estate, we specialise in guiding Indian investors through every step of this process, from selecting high-yield properties to ensuring your transactions are structured and compliant with both jurisdictions.

Because wealth built right is wealth that lasts.