The process of buying a property in Dubai.
Sky-high yields. Zero federal or Emirate-level income taxes. Dubai dazzles with its glittering skyscrapers, palm-shaped islands, and reputation for unapologetic luxury.
Property investors. They’re flocking here because Dubai delivers outrageously strong rental yields and sweet tax breaks. Coupled with a constantly increasing population, its tourist hotspot stats, and consistently famous development opportunities; this is a place that has it all – both now and in the foreseeable future.
What are the requirements to buy a property in Dubai?
As of Janurary 2024, buying property in Dubai has become a pretty simple process, much like purchasing real estate in most Western parts of the world.
There are no age restrictions whatsoever, and if you’re a resident (considered someone who lives in the UEA), you can simply make an offer and acquire ownership by successfully navigating the sales process.
If you’re a foreigner (someone who doesn’t live in the UEA), you’re able to acquire freehold ownership without restrictions either, whether that’s a freehold property contract, off plan properties (construction yet to be completed), usufruct rights, or a leasehold up to 99 years.
No visa is required!
You may only purchase a new title deed for freehold properties if they’re within the designated land plots, as outlined in pages 129 – 132 of the Emirate of Dubai (a document known as Article 3 of Regulation No. 3 of 2006 Determining Areas of Ownership by Non-Nationals of Real Property)
The areas for owning property include:
- Umm Hurair 2
- Al Barsha South 2
- Al Barsha South 3
- Emirates Hills 1
- Emirates Hills 2
- Emirates Hills 3
- Jebel Ali
- Al Jaddaf
- The World Islands
- Ras al Khor
- Al Rowyah
- Sheikh Zayed Road
- Sofouh 1
- Sofouh 2
- Al-Qouz 3
- Al-Qouz Industrial Area 2
- Al-Qouz Industrial Area 3
- Mirdif
- Dubai Marina
- Palm Jebel Ali
- Palm Jumeirah
- Nad al-Sheba
- Warsan 1
How much tax do I pay when buying a property in Dubai?
By far, one of the greatest benefits of buying property in Dubai is the fact that you don’t need to pay tax on it in the traditional sense at all! How unbelievable is that.
There’s no income tax or inheritance tax payable on property in Dubai, although foreign investors may be subject to income tax from their country of residence if they don’t actually live in Dubai.
However, there is a 4% transfer fee payable to the Dubai Land Department when a property is transferred to them. In addition to this, a ‘housing fee’ is payable monthly, equivalent to 5% of the average rental value of the area.
How to find a property in Dubai?
Several websites are great for finding investment properties in Dubai, including but not limited to;
- Rightmove
- Zoopla
- Property Finder
- Bayut
- Allsopp & Allsopp
- Sotheby’s International Realty
You can also contact property mgmt companies directly in order for them to connect with appropriate investment properties.
Conclusion
Buying a business in Dubai, a place filled with beautiful islands, skyscrapers and its glittering reputation in the eyes of business can be a hard move. Good news is that there is no tax to pay! But still going through such a new process can be difficult.
