FAQ

Earlier, ownership of property in Dubai was restricted to citizens of the UAE. However, in 2006, the government passed Regulation No. 3, determining designated areas where non-citizens can own property. In these areas, foreigners are permitted to buy property on freehold ownership. Major freehold properties are available in most parts of ‘new Dubai,’ such as in Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers and Emirates Hills.

Dubai is generally recognized as offering superior value on a dollars-per-square-foot basis, compared to most modern and desirable urban and semi-urban locations around the world. In this respect, buyers may still benefit from Dubai being a “new” home-owning location; however, this particular secret is being shared around the world very fast! To date, the level of demand for Dubai residential property has resulted in very respectable uplifts in the value of properties already on the market.

The United Arab Emirates is a tax-less country so there are no taxes on property or on any income generated off it. However, the property owner is responsible for the annual maintenance fee and service charge payments, which need to be made to the management company hired by the owner’s association. Payments are made from between one to four times a year at an average price of AED10-AED30 per sq.ft, depending on the project and services included.

In most instances, the transaction process goes as follows: Buyer chooses the property. Buyer and seller sign the sales and purchase agreement, where all the terms and conditions of the deal are mentioned: the purchase price, additional expenses (agency fee, transfer fee at the DLD, developer’s fee, service charge refund, etc), the transfer date of the deal at the DLD, terms of payment and clearly-defined responsibilities and penalties for both parties in case they fail to uphold the conditions set out in the agreement. On signing the agreement, the buyer pays the deposit. This is usually 10% of the purchase price. The seller applies for a no-objection certificate (NOC) from the developer in order to sell the property. The NOC is required for the transfer process at the DLD. Once the NOC is ready, the buyer and seller can transfer the property and register it on the buyer’s name. Usually, payments need to be made at the time of registration.

The regulations, governing the relationship between the landlord and the tenant, are defined in Law No. 26 of 2007. As per the law, any property owner in Dubai can rent out their unit. Usually, the rental period is one year (extensions are possible). A property owner can appoint a licensed management company to manage his/her property, in which case the firm bears all responsibility of communicating with the tenant.

Investors, home owners and specialists, such as doctors and engineers, can receive UAE residency visas valid for up to 10 years as per the law announced in May 2018 by the UAE government. The existing property visa is a two-year renewable property investor visa issued by the Dubai Land Department for a freehold property valued at Dh1 million or more on the title deed.

No, if you are a resident abroad, you do not have to pay any tax.

RERA is the Real Estate Regulatory Agency. It regulates the real estate industry in Dubai and handles the relationship between all parties of a contract and organizes property exchange processes.

Once a property has been handed over to the purchaser, it must be registered in the name of the purchaser at the Dubai Land Department (DLD). The property owner can appoint someone with a notarised Power of Attorney to register their property and receive a title deed if they are unable to do it themselves. Off-plan property needs to be registered in the interim register through the Oqood system on receiving the initial sale contract. When the property is ready, a title deed will be issued in the name of the homeowner. A registration fee of 4% of the property value needs to be paid along with a fixed amount for document preparation.