India’s Budget 2026 makes life easier for NRIs in the UAE , here’s how it affects your money

If you live in the UAE, chances are many of your financial decisions are still tied to India, whether it’s investing in shares, selling property, sending money for education, or planning a family trip home.

While India’s Union Budget 2026 did not overhaul the tax system, it quietly fixed several rules that had made everyday NRI decisions more complicated than necessary. From cheaper overseas remittances to smoother property sales and clearer investment limits, here’s what has changed, and why it matters if you’re based in the UAE.

Travel and remittances just got cheaper

One of the most immediate reliefs comes in the form of lower upfront tax on common international expenses. Budget 2026 reduces the tax collected at source (TCS) on several overseas payments to a flat 2%, improving cash flow for families.

The changes apply to:

• Overseas tour packages: Tax reduced from earlier slabs of 5% and 20% to a flat 2%, covering travel, hotels, and boarding.

• Education abroad: Remittances sent from India for tuition or overseas study now attract only 2% tax, down from 5%.

• Medical treatment abroad: The tax on remittances for overseas medical expenses is also reduced to 2%.

For UAE-based families, this means less money blocked upfront. For example, if a family in Dubai sends funds from India to pay university fees in the UK or Canada, the upfront tax drops significantly, freeing up money for essentials such as accommodation, books, and living costs.

Selling property in India becomes simpler

This is one of the most practical changes for NRIs. Earlier, when an NRI sold property in India, the buyer had to apply for a special tax number called a TAN just to deduct tax before paying the seller. Many buyers found this process confusing and often avoided NRI-owned properties altogether.

From October 1, 2026, buyers can use their existing PAN instead. The extra administrative step is removed. So if you own an apartment in Kochi, Bengaluru, or Pune and plan to sell it while living in Abu Dhabi or Dubai, the process should now move faster, with fewer objections and delays. In effect, selling property as an NRI becomes much closer to selling as a resident Indian.

A one-time chance to clean up old overseas assets

Many NRIs unknowingly carry small financial loose ends, an old bank account from a previous country of work, company shares from a former employer, or an insurance policy taken years ago and forgotten.

Budget 2026 introduces a one-time disclosure scheme allowing such assets to be declared without fear of harsh penalties or prosecution. You can regularize past omissions, pay the applicable tax or fee, and move on. For those who never intended to hide assets but were unaware of disclosure rules, this offers a clean, legal reset.

Higher limit for investing in Indian shares

NRIs who invest directly in Indian stocks receive a meaningful boost. Earlier, an NRI could hold only up to 5% of a single listed Indian company through direct share investments. Budget 2026 raises this limit to 10%, provided investments are made via NRE or NRO accounts under the Portfolio Investment Scheme.

If you invest regularly in Indian stocks, banks, IT majors, or consumer companies, you may have earlier been forced to stop buying once you hit the 5% cap. Now, you can continue building positions without unnecessary restrictions. For NRIs who prefer direct stock investing over mutual funds, this change offers greater flexibility and long-term planning freedom.

Relief for certain NRI-linked businesses

Budget 2026 removes minimum tax requirements for some businesses taxed on a fixed-rate basis. This mainly affects:

• Cruise ship operations

• Services linked to setting up electronics manufacturing units in India

If you are connected to a cross-border business operating from the UAE and linked to Indian manufacturing or logistics, tax calculations may now be simpler and more predictable.

Clear tax exemption for UAE firms supplying to India

Foreign companies, including UAE-based firms, supplying machinery, tools, or equipment to electronics manufacturing units in India’s special zones will receive tax exemption until 2031. For a Dubai-based company supplying production equipment to an Indian electronics plant, this brings long-term tax clarity, making contracts and expansion plans easier to structure.

What this Budget really means for NRIs

India’s Budget 2026 may not have made dramatic announcements for NRIs, but it quietly removed pain points that:

• limited how much you could invest

• made property sales unnecessarily difficult

• created anxiety over old financial accounts

• added tax complexity where it wasn’t needed

Put simply, the focus is on making it easier for NRIs to stay financially connected to India without unnecessary stress. For those living in the UAE, it makes everyday decisions, from investing to supporting family back home, noticeably smooth