- Transfer fee 4% of Property Sale Price
- Trustee office admin fee AED 4,000+VAT
- Manual Transfer fee AED 1,545 (If relevant)
- Conveyancing Fee AED 5,000+VAT
- Mortgage registration of 0.25% of the loan
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.
The UAE government implemented a landmark policy by introducing value-added tax (VAT) at a rate of five per cent, effective from January 1st, 2018.
The VAT law states that all real estate transactions, apart from the sale of vacant commercial properties and commercial property leases, are either not subject to or exempt from the tax.
In other words, there is no VAT charged on the rent for residential accommodation. However, it is possible that a residential tenant benefits from other services – either included in the rental agreement or in addition to the agreement – that are subject to VAT.
This is dependent on the type of purchase. Off-plan purchases can be as quick as 1 day when the funds have reached the country. However, when buying within the secondary market, the length of time can vary depending on the type of purchase. Cash purchases can be anything from a few days, whereas finance purchases can be from 6-8 weeks.
There are no taxes to pay in the UAE at the moment. However you will need to check the legislation from your home country to understand if you need to pay income tax or capital gains tax from investments in Dubai.
- The process of buying a property includes four basic legal steps that need to be followed in Dubai.
- Establishing buyer and seller agreement
Once you have found a property that you want to invest in, you must consult a real estate agent. They will help you communicate, negotiate and outline the terms of sale with the owner.
- Signing an agreement for sale
Once all the details are finalized, it’s time to sign the agreement of sale, also known as the Memorandum of Understanding (MoU). In Dubai, this document is entitled ‘Contract F’ and is available on the Dubai Land Department’s website, under the ‘Contracts’ page. Upon signing this contract it is standard practice in Dubai for the buyer to pay a 10% deposit of the property value to the seller.
- Applying for a No Objection Certificate (NOC)
To allow for the transfer of ownership you must apply and pay for a No Objection Certificate from the developer of the unit you are purchasing. This will allow for the transfer of ownership. Once all outstanding service charge payments are finalized the developer will be able to provide an NOC.
Yes, any person of any nationality, whether they are a resident of Dubai or based abroad, can purchase property in Dubai's freehold market. You are not required to hold any type of residency or similar permit in order to purchase property.
The majority of properties in Dubai are Freehold, there are only a few communities which offer Leasehold. Your agent will be able to confirm these to you.