What Indians Must Know Before Investing in Property Abroad

A lavish villa in Dubai. A picturesque flat with a view in London. A beachside home in Phuket. Buying a second home overseas is no longer just a flex for the ultra-rich. Now, more Indians than ever are going global with real estate portfolios. According to the 2025 India Luxury Residential Outlook Survey by India Sotheby’s International Realty, the proportion of Indians showing interest in overseas real estate doubled in a single year, jumping from around 10-11 per cent to an impressive 22 per cent. Destinations such as Dubai, the US, the UK, and Canada have become hot favourites among Indian buyers, all driven by stable currency values, higher returns on investments, favourable real estate policies, residency options, and a higher quality of life. 

But it’s pretty obvious that buying a property abroad is nothing like buying locally, and walking into it without any real knowledge might get you into unwanted trouble.

Between April 2024 and March 2025, Indian nationals purchased above 4,700 properties in the US alone, contributing $2.2 billion (approx Rs 18,200-18,500 crore) in volume. Yet, navigating foreign ownership laws, taxation rules, and currency remittance limits remains genuinely complex.

While looking for a holiday retreat, a rental income stream, or a long-term investment abroad, it all might seem a bit confusing for sure. To make things easier, here's what you need to know about looking for a property abroad.

Top Countries Indians are Investing in Right Now

Out of all the destinations, Dubai has established itself at the top for Indian overseas property buyers. Currently, Indians hold a 22 per cent share of Dubai’s foreign buyer pool, with investments projected to exceed AED 30 billion (approx Rs 68,000 crore), making them the largest foreign investor group in the city. Some of the popular areas that Indians prefer include Jumeirah Village Circle, Discovery Gardens, and Dubai South. All of these areas are favoured for high rental yields of 7 to 8 per cent in prime areas, no capital gains or property tax, along with a Golden Visa for investors who put AED 2 million (approx Rs 4.5 crore) or more. 

Apart from Dubai, the US remains a serious contender, with Indian nationals purchasing about 4,700 properties there in a single year, contributing $2.2 billion (approx Rs 18,200 crore) in volume. Apart from these, the UK, Canada, Singapore, and Thailand round out the list, each bringing in their own mix of rental income, residency perks, and lifestyle benefits that are drawing an ever-growing number of Indian investors globally.

Rules to Keep in Mind Before Signing a Lease

• Before you start browsing listings abroad, it is extremely essential to understand how the money moves because this is where many buyers are caught off-guard.

• The RBI’s Liberalised Remittance Scheme remains the only compliant channel for Indian residents to buy property overseas. This allows remittance of up to $250,000 (approx Rs 2.1 crore) per individual per financial year. Families can pool their limits by making each member a co-owner. Meaning, a family of four could collectively move up to $1 million (approx Rs 8.3 crore) in a single year.

• As of April 2025, a Tax Collected at Source rate of 20 per cent applies on property-related remittances exceeding Rs 10 lakh. Although this is not a final tax and can be adjusted against your tax liability or claimed as a refund when filing an ITR. 

• Beyond this, investors are required to disclose foreign holdings in Schedule FA when filing Indian income tax returns. Failure to do so can attract a penalty of Rs 10 lakh under the Black Money Act.

The compliance framework has grown more structured in recent years, and getting it right from the start is what separates a genuinely smart investment from a costly one.