Dubai is one of the easiest places in the world for a foreigner to buy property: freehold ownership, a registration system run by one government department, no personal income tax and the chance of a long-term visa. The process is quick, but it has its own steps and costs. This guide walks through them.
Fees, lending limits and visa thresholds change. Check the current figures with the Dubai Land Department, your bank and a qualified adviser before you commit.
The legal framework
Dubai opened freehold ownership to foreigners in 2002, and Law No. 7 of 2006 on real property registration put it on a firm legal footing. In designated freehold areas, non-UAE nationals can own property outright, with the right to sell it, rent it out or leave it to their heirs. Popular freehold areas include:
- Downtown Dubai and Business Bay
- Dubai Marina, Jumeirah Beach Residence and Jumeirah Lake Towers
- Palm Jumeirah and Bluewaters Island
- Emirates Hills and Dubai Hills Estate
- Dubai Creek Harbour, JVC and Dubai South
Browse our community guides for more areas.
Buying a ready (resale) home
- Choose and check. Confirm the seller owns the property, check the title deed and any mortgage on it, and ask for the service charges.
- Agree terms (Form F). Buyer and seller sign the RERA memorandum of understanding, known as Form F, setting out the price and timeline. The buyer usually gives a deposit, commonly 10%, held until transfer.
- Developer NOC. The seller gets a no-objection certificate from the developer confirming no service charges are outstanding.
- Transfer. Both parties, or their representatives, complete the transfer at a Dubai Land Department trustee office. The buyer pays the price and the fees, and the new title deed is issued in their name.
Buying off-plan
- Reserve. Pay a booking amount to the developer to hold the unit.
- Sign the SPA. The sale and purchase agreement sets out the unit, the price, the payment plan, the completion date and what happens if either side defaults.
- Register in Oqood. The sale is recorded in the Dubai Land Department's interim register, which protects your rights until the building is finished.
- Pay into escrow. Instalments go into the project's escrow account and are released to the developer as construction progresses.
- Handover. On completion you pay any remaining balance, inspect the unit and receive the title deed.
Our off-plan guide covers payment plans and how to judge a developer.
Financing
Cash
Many international buyers pay cash, which keeps the process simple and can help when negotiating.
Mortgages
UAE banks lend to residents and, at some banks, to non-residents. UAE Central Bank rules cap the loan as a share of the property's value, with lower limits for second homes, homes above AED 5 million and off-plan property. Non-residents usually need a larger deposit. Banks also limit the term so the loan ends before retirement age. Expect to provide your passport, bank statements, proof of income and, if you live in the UAE, your Emirates ID.
Developer payment plans
Off-plan projects often spread payments over construction, and some continue after handover, which reduces the cash needed up front.
Costs and fees
- DLD transfer fee: 4% of the price, plus administration fees
- Trustee office fee: charged by the registration trustee on transfer
- Agency commission: commonly 2% of the price, plus 5% VAT
- Mortgage registration: 0.25% of the loan, plus the bank's arrangement and valuation fees
- Service charges: paid yearly to the building or community, and different for every project
Tax
- No annual property tax (residents pay a municipality housing fee through their DEWA bill)
- No personal income tax on rent
- No capital gains tax for individuals
- No inheritance tax
Two caveats. First, your home country may tax rent and gains from abroad, so take advice there. Second, without a registered will, a foreigner's UAE estate can be distributed under local inheritance rules; many owners register a will, for example with the DIFC Wills Service Centre.
Visas for property owners
Property worth at least AED 2 million can qualify the owner for a 10-year Golden Visa, and mortgaged or off-plan property can count under conditions. Shorter, renewable investor visas are also available for lower values; ask the Dubai Land Department for the current thresholds. Read more in How Dubai's Golden Visa Program Is Transforming the Property Market.
Common mistakes, and how to avoid them
- Skipping due diligence. Check the developer, the title and any mortgage or service-charge arrears before you pay a deposit.
- Forgetting the extra costs. Add fees, service charges, furnishing and utility deposits to your budget.
- Ignoring supply. Find out how many new homes are due near the one you are buying.
- Signing without advice. Have a qualified lawyer review the SPA or Form F before you sign.
- Using an unlicensed agent. Dubai brokers must be registered with RERA. Ask for their BRN and check it in the Dubai Land Department's apps.
Conclusion
Dubai makes foreign investment straightforward: clear ownership rights, one registration authority, low taxes and residency options. Follow the steps, budget for every fee and get independent advice on the contract, and buying from abroad is far simpler than in most global cities. For the legal side in more depth, read our legal guide for investors.
Where Propfusion fits
Every step of a remote purchase, on the record
International buyers negotiate from another time zone. In Propfusion every call, viewing, offer, counter-offer and mortgage update is logged on the lead's timeline, in order.
Anyone on your team can pick up the deal and know exactly where it stands, and what the client was promised.
Screens show the Propfusion Demo Realty sample workspace. All people, listings and numbers are fictional.
Frequently asked questions
Can foreigners buy property in Dubai?
Yes. Non-UAE nationals can buy freehold property in designated areas of Dubai, which include most of the city's popular residential communities, such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay and Dubai Hills Estate. You do not need to live in the UAE to buy.
What are the main costs of buying?
The largest is the Dubai Land Department transfer fee of 4% of the price. Add the DLD's administration and trustee office fees, the agency commission (commonly 2% plus VAT) and, with a mortgage, the mortgage registration fee of 0.25% of the loan plus bank and valuation fees.
Can a non-resident get a mortgage in Dubai?
Some UAE banks lend to non-residents, usually with a larger deposit than for residents. UAE Central Bank rules cap how much any bank may lend against a property, with lower limits for second homes, homes above AED 5 million and off-plan property.
Do I pay tax on rent from a Dubai property?
There is no personal income tax in the UAE, so individuals pay no UAE tax on rent or on a gain when they sell. Your home country may still tax that income, and property held through a company can fall under UAE corporate tax.