Dubai for Indians
Money Matters

Liberated Remittance Scheme
LRS has been devised by the Reserve Bank of India to allow Indians to transfer money abroad. The scheme allows an approval-free transfer of $250,000 per person per year including minors. So a family of four can easily transfer $1 million each year. This is more than enough for you to purchase your dream property in Dubai.
Rental Yields
The income generated by means of rent can be legally transferred to India. The Municipal Taxes paid are deducted from the annual rent of the property to arrive at the Net Asset Value (NAV). The NAV is then taxable according to your income tax slab. One can also avail an additional deduction of up to 30% of NAV under Section 24A of the Income Tax Act. Apart from this one can also claim deduction by reflecting the Property Management Agency fees.


Capital Gains
The Indian government considers income generated from investments in local and foreign real estate as the same. Therefore, capital gains on long term and short term investments are taxed at 20% and 30% respectively. Gains from real estate investments held for more than 36 months are considered as long term capital gains while the rest are considered as short term. The 20% tax on long term gains can be avoided by reinvesting in Indian properties.