How to Buy a Property in Dubai as a Foreigner

Dubai, a magnificent hub of the UAE, attracts investors from diverse corners of the world. Luxurious lifestyles, futuristic architecture, and ambitious projects are a true magnet for both homebuyers and those who want to successfully invest financial capital. Therefore, many people around the world ask themselves the question of whether foreigners can buy property in Dubai. Our agency’s team has prepared a guide for foreigners aiming to buy their own real estate in the UAE.

Can a Foreigner Buy a House in Dubai?

In 2002–2008, Dubai’s government promulgated a range of laws that approved the right of persons of non-Arabian origin to purchase a property in certain freehold areas. In such zones, real estate becomes the owner’s unconditional property. Freehold status allows the proprietor to not only possess the housing but also manage it in their direction: rent, resell, or even give. Thus, subject to compliance with current legislation, nonresidents can buy property in Dubai. At that, one of the main requirements claims that the buyer should be over 21 years old.

Buying Property in Dubai as a Foreigner

The purchase of a property in a foreign state requires knowing the numerous nuances of local legislation, preparing certain documents, and being aware of the peculiarities of real estate ownership. Let’s consider the primary trends in buying a house in Dubai for expats and investors.

Types and Forms of Dubai Real Estate for Non-Residents

In the UAE, it is possible to become the owner of three property forms. 

1. 1. Freehold areas provide unconditional ownership. To date, in the Emirates, there are a few dozen zones with freehold status. In such an area, expats can buy property in Dubai and obtain all the rights to manage it.
2. 2. Leasehold districts offer to rent real estate for a fixed period of time. According to the concluded agreement, the tenant pays the rent monthly or quarterly for 10 to 99 years.
3. 3. Commonhold areas give several buyers the opportunity to purchase a housing object and register it as a shared residential property for an unlimited period of time.

Property Options

Dubai property available for sale to foreigners consists of three main categories.

• Off-plan property includes housing objects and residential complexes that are under construction.
• Primary real estate embraces new properties recently commissioned by developers.
• Secondary property is objects that have already been previously owned.

Let’s consider how an expat or an investor can buy property in Dubai.

Documents Required for the Purchase of Housing

The requirements for documents when buying real estate are minimal. The buyer must provide a foreign passport and residence visa, allowing them to stay in the country. Regarding the question of whether foreigners can buy property in Dubai remotely, Dubai’s law permits proxy transactions and remote deals.

When the foreigner purchases real estate through a representative, the document’s list is slightly longer. It includes a certified copy of the buyer’s passport, the representative’s power of attorney, and their passport. The power attorney’s certification takes place in the UAE’s notary offices. If it is issued in another state, it is necessary to translate the document into Arabic and legalize it at the embassy and the Ministry of Foreign Affairs.

The Process of Buying Property in Dubai for Foreigners 

The first stage of any property purchase is selecting a suitable residential unit. The Dubai real estate market is quite vast and offers potential buyers affordable studios, comfortable apartments, well-equipped townhouses, huge villas, and spacious mansions. When choosing an object, pay attention to the property’s location, the developer’s reputation, and access to amenities. 

The Main Steps of How to Buy Property in Dubai as a Foreigner

The buying process includes several stages.

1. 1. It is necessary to sign a preliminary agreement. Both sides of the transaction discuss the major aspects of the future deal.
2. 2. The purchaser and the seller conclude the sale agreement. The purchaser pays a deposit, which, on average, amounts to 10% of the full cost.
3. 3. The Dubai Land Department registers a concluded deal. At the same time, the buyer makes final payments and pays the fees.

Can Foreigners Buy Off-Plan Property in Dubai?

In the case of off-plan buying, first of all, it is necessary to reserve an object and confirm the intention to buy it by paying 1-5% of the sum. The developer sends the booking agreement. The booking form is a preliminary purchase and sale contract that specifies the floor, living area, deadlines, and installment payment scheme. 

After signing, the developer sends the invoice for the first installment payment. At the same time, the buyer pays a 4% transfer fee to the DLD and a registration fee. The developer prepares the SPA contract (Sales Purchase Agreement). One of the final stages is the deal’s registration on the online portal OQOOD. After successful registration, the purchaser gets a certificate of ownership for the building object. When the property is 50% ready, the owner can apply for a residence visa. While the construction progresses, the buyer must pay installments on time. As soon as the building process comes to an end, the purchaser receives a certificate of full ownership. In several cases, expats can own property in Dubai while still paying installments.

Can a Non-Citizen Buy Secondary Property in Dubai?

Foreigners can purchase the secondary real estate. The main feature of this type of transaction is the necessity of acting through licensed brokers. The Land Department doesn’t register the agreement concluded without an intermediary. Therefore, if you are trying to understand whether you can buy a house in Dubai as a foreigner, you are able to do it, but you should use the specialist’s service.

Therefore, the purchaser should sign a contract with the broker. In most cases, the conclusion of an agreement takes place after selecting a property. At the same time, the broker concludes a contract with the seller. After this, the broker can unite two agreements into Contract F, or Memorandum of Understanding, which indicates all the conditions of the future deal. The buyer pays a 10% deposit. The final stage takes place in the Land Department. The purchaser pays the entire sum, and the seller transfers ownership rights.

Guide for Expats Buying Property in Dubai: FAQ

Can Foreigners Buy Property in Dubai in Installments?

The option of purchasing real estate in installments is available for both UAE citizens and foreigners. Foreigners can own property in Dubai and make a loan to buy it. However, they are able to get a lower sum and, in most cases, at a higher interest rate.

Do Property Owners in Dubai Have Financial Obligations?

The primary obligation of a real estate proprietor is to pay an annual fee for the maintenance of the apartment or house and its territory. The average rate is approximately $35 per square meter.

What Taxes are Paid When Buying Property in Dubai by Foreigners?

The UAE has quite a comfortable tax policy for both citizens and nonresidents. However, there are several types of taxes for those who purchase real estate.

• A 4% transfer fee must be paid to the Dubai Land Department. In most cases, the buyer pays it, but sometimes the seller and purchaser divide it. Additionally, there is an administrative fee of $150.
• A registration fee is an obligatory one-time payment. The fee amounts to 2,000 dirhams (or $550) when buying a property that costs less than 500,000 dirhams (or $137,000). In the case of expats’ buying property in Dubai for more than 500,000 dirhams, it is necessary to pay 4,000 dirhams ($1,100).
• After concluding the transaction, the buyers pay a fee for obtaining a certificate of ownership confirming the legality of the deal. It costs about $70.
• Despite the fact that in the UAE, property owners don’t pay the rental tax, there is a municipal service fee. It varies from 2.5% to 10% of the rental cost.
• Since 2018, the government has introduced a 5% federal sales tax. However, only tenants and buyers of commercial objects must pay it.

Can I Buy a House in Dubai as a Foreigner Profitably?

Foreigners buying real estate in Dubai get a range of advantages, including the state’s protection on all issues of property ownership, exemption from property taxes, and the opportunity to obtain a residence visa. Due to a high ROI index, US citizens and residents of other countries can profitably buy property in Dubai to get income in the future.

How Can Foreigners Buy Property in Dubai and Apply for a 5-Year Visa?

After purchasing real estate that costs more than AED 750,000 (or about $204,000), a foreigner can get a two-year visa. To obtain a visa for a period of 5 years, it is necessary to buy property worth AED 2,000,000 ($544,500).

Benefits of Dubai Real Estate Investment for Expats

The UAE’s government provides quite comfortable conditions for those who consider buying property in Dubai as a foreigner, offering a loyal attitude to non-citizen businessmen and a high standard of living.

• The Dubai property market is full of diverse options. It includes both luxurious and quite affordable dwellings. Despite the constant growth of prices, to date, there are still many variants of property for sale in Dubai available for foreigners.
• The UAE introduces an opportunity to pay with cryptocurrency. Americans can buy property in Dubai with cryptocurrency. Among the primary method’s advantages are the high transfer rate, low fees, and the ability to make large financial transactions.
• Dubai demonstrates one of the lowest levels of crime. Due to an effective legal system, investing capital in Dubai real estate is quite reliable.
• It is possible to make a purchase remotely. It is a popular practice among many property agencies. Foreigners can buy land in Dubai without being in the UAE.
• Dubai is a prospective space for real estate investing. The average return on investment amounts to 7.5%, which is higher than the global average ROI.
• Dubai’s real estate prices are increasing. Therefore, there is an opportunity for foreigners to buy property in Dubai and, with time, resell it, being in the black.

The Reasons to Apply to a Specialized Agency

Many buyers ask themselves, “Can I buy a house in Dubai as a foreigner without applying to an agency?” In most cases, it is possible, but more difficult and time-consuming. The real estate agency assists the foreigners in rapid and problem-free buying a supreme property.

• The property market is oriented toward agents. Dubai’s market is rapidly growing and demonstrates a huge volume of sales. Therefore, the developers prefer to lead business with professional agents rather than conduct personal work with each buyer.
• The primary agency’s priority is clients’ interests. While the developer’s managers strive to sell their objects, the agent focuses on selecting the truly perfect option for the customer.
• The agency builds, in most cases, long-term relationships with its clients. The specialists don’t stop their activity after the conclusion of the deal. With their help, expats can buy land in Dubai, obtain a visa, and manage a property.
• The agents are well-experienced specialists. They are aware of all the subtleties of the buying and money-transfer processes. Without professional assistance, it is hardly possible to remotely buy a wanted object.
• The agency offers a truly wide range of high-quality properties. Developers can scarcely select an absolutely appropriate variant, while agents have a huge catalog.

By applying to Golden Bee, you can buy a property in Dubai as a foreigner and be sure that the real estate selected by our specialists corresponds to all of your preferences and wishes. Our work is based on an individual approach to every customer’s request and a wide range of services available to the agency’s clients. Contact our managers, describe your dream housing, and let us find proper real estate for you!