Dubai — Indian residents visiting the UAE can freely use their credit cards or UPI for personal expenses such as shopping, hotel bookings, and travel. However, financial consultants warn that using credit cards to make down payments on UAE real estate is a violation of India's overseas investment rules.
Despite growing awareness, some Indian buyers continue to swipe their credit cards to secure off-plan property deals in Dubai, attracted by low initial payment schemes.
“Credit cards are for personal spends, not capital investments like property,” said Gaurav Keswani, CEO of Dubai-based JSB Incorporation.
The Reserve Bank of India mandates that property purchases abroad must be conducted under the Liberalised Remittance Scheme (LRS). Payments must be routed through Indian banks, using a remitting account over one year old, along with submission of Form A2 and PAN details. A 20% Tax Collected at Source (TCS) also applies.
“A card swipe may go through, but it lacks the required compliance trail,” Keswani added. “It could raise questions later and complicate resale or fund repatriation.”
India has tightened oversight on outbound investments, with stronger digital tracking and cross-border data sharing. Experts urge resident Indians to follow official procedures to avoid legal and financial complications.
