Original featureOverseas property remittances jump 64% to $528.7 million as Indians chase rental income, capital gains anThe Times of India · 22 October 2026 →

Regulatory backdrop and recent data

The Times of India reported on 22 Oct 2026 that Indian residents transferred $528.7 million abroad for property purchases, a 64 percent increase on the previous month. The figure reflects growing interest in rental yields and capital‑gain opportunities in markets such as the United Arab Emirates, United Kingdom and United States.

Under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), Indian residents may remit up to US$250 000 per financial year for permitted current‑account transactions, including overseas real‑estate acquisition. The LRS ceiling has been unchanged since 2022, but the RBI has recently issued a circular reminding users that any purchase must be for personal use or investment, not for commercial development.

Key legal provisions affecting buyers and owners

The RBI circular, published in July 2026, requires that all overseas property purchases be funded exclusively through LRS‑approved channels and that the transaction be recorded in the buyer’s PAN. Failure to disclose the purchase can trigger penalties under FEMA, including fines up to 10 percent of the transaction value and possible prosecution.

Foreign‑ownership limits remain in place in several jurisdictions. For example, the United Kingdom’s ‘Buy‑to‑Let’ licensing scheme, in force since 2021, obliges non‑UK residents to obtain a specific landlord licence and to meet stricter energy‑performance standards (EPC rating C or above). Similar licensing is required in Dubai, where the Department of Tourism and Commerce Marketing (DTCM) mandates a short‑term rental permit for any property advertised on platforms such as Airbnb.

India’s own ‘Golden Visa’ scheme, announced in 2025, offers a five‑year residence permit to foreign investors who purchase residential property worth at least INR 5 crore (approximately €550 000) in designated states. The scheme is currently approved and operational in Gujarat, Karnataka and Maharashtra, but it excludes Indian citizens from benefiting.

Practical steps and risks for Indian investors

Prospective buyers should first confirm that the intended remittance stays within the US$250 000 LRS limit for the fiscal year; excess amounts require a separate approval from the RBI, which can be time‑consuming. They must also ensure that the seller provides a valid title deed and that the property complies with local zoning and rental‑licence requirements.

Tax implications are significant. Rental income earned abroad is taxable in India under the global income provision of the Income Tax Act, with credit available for foreign tax paid, subject to the Double Taxation Avoidance Agreement (DTAA) of the host country. Capital gains on resale are taxed at 20 percent for long‑term holdings, but the exact rate depends on the tax treaty in force.

Failure to obtain the required local landlord licence can result in fines, suspension of the rental platform account, or even forced eviction. Moreover, non‑compliance with energy‑performance standards may lead to higher operating costs and reduced marketability.

Future outlook and regulatory trends

The RBI is reviewing the LRS ceiling in the 2027‑28 budget, with industry bodies warning that a lower limit could curb the current momentum in overseas investment. Simultaneously, several European countries are tightening short‑term rental regulations, which may affect the profitability of Indian investors who rely on tourist‑let income.

Legal experts advise monitoring amendments to the FEMA rules and any new bilateral agreements that could alter DTAA provisions. As the global real‑estate market adapts to tighter sustainability mandates, investors should also anticipate stricter EPC compliance requirements, particularly in the EU where the Energy Performance of Buildings Directive is set to raise the minimum standard to EPC B by 2028.

Related reads

• Overseas property remittances jump 64% to $528.7 million as Indians chase rental income, capital gains an (The Times of India, 22 Oct 2026)
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Sources & credits

• Feature: Overseas property remittances jump 64% to $528.7 million as Indians chase rental income, capital gains an — The Times of India. Linked, not reproduced.
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