Frequently asked questions
Straight answers on buying, owning, and investing in Dubai and UAE real estate. Pick a topic, or start with the questions we get asked most.
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Most asked
Yes, foreigners can own property in Dubai, in the designated freehold areas.
Freehold vs Leasehold
- Freehold: Full ownership of property and land indefinitely
- Leasehold: Typically 99-year ownership rights
Popular Freehold Areas
- Downtown Dubai
- Dubai Marina
- Palm Jumeirah
- Business Bay
- Jumeirah Lakes Towers (JLT)
- Arabian Ranches
- Dubai Hills Estate
Ownership Rights
In a freehold area, a foreign owner has full rights to:
- Buy, sell, lease, and mortgage the property
- Pass the property to heirs through inheritance
- Register property with Dubai Land Department
- Obtain residency visa based on property value
Legal Requirements
- Valid passport
- UAE entry stamp or residence visa
- Proof of funds (bank statements, income documentation)
- No-Objection Certificate (NOC) from developer if buying off-plan
Registration Process
Every transaction has to be registered with the Dubai Land Department. Registration fees are 4% of property value (2% from buyer, 2% from seller).
No, Dubai charges no annual property tax. That is a big part of why the numbers work here for investors.
What Dubai does not charge
- No annual property tax
- No wealth tax
- No capital gains tax on property sales
- No inheritance tax
The fees you do pay
There is no tax, but there are costs, and you should budget for them.
One-time registration fees
- 4% of the property value paid to the Dubai Land Department, split 2% buyer and 2% seller
- Trustee office fee, usually AED 4,000
- Mortgage registration fee if you finance: 0.25% of the loan amount
Annual service charges
These go to the owners association for the upkeep of your building or community:
- Apartments: AED 10-25 per square foot
- Villas: AED 5-15 per square foot
- Covers common area maintenance, security, and amenities
Utility connection
- A DEWA connection deposit when you set up electricity and water
- Housing fee of 5% of annual rent, or of estimated rental value for owners
If you rent it out
Your rental income is not taxed. There is no income tax on what you earn from the property. Every dirham of rent is yours.
When you sell
No capital gains tax. You pay the standard 2% DLD transfer fee and nothing on the profit.
That tax position is one of the main reasons capital moves into Dubai property rather than a lot of other markets.
Dubai Resale Property Fees Dubai Resale Property Fees, What to Budget (Cash vs Mortgage)
A clean breakdown of typical resale costs, and why totals change with financing.
Direct Answer
On a typical Dubai resale, most buyers land around 6% to 10% of the price once you add the 4% DLD fee,
trustee and admin fees, and agent commission. Buy with a mortgage and you add 0.25% of the loan plus bank
arrangement and valuation costs.
Explanation
The cleanest way to think about total fees is to split them into two buckets: government transfer and
registration costs, and transaction service costs (agent, bank, optional conveyancing). The total shifts a
lot depending on whether you buy cash or finance, and whether the unit is resale or off plan. I am focusing
on resale here, since that is where people most often weigh cash against a mortgage.
Government fees (the ones you cannot really avoid):
-
The Dubai Land Department (DLD) lists a 4% transfer fee on the sale value. On its sale
registration service the fee display shows 2% seller and 2% buyer, though real deals often allocate it
differently in the agreement. -
DLD also shows service partner (trustee) fees of AED 2,000 + VAT under AED 500,000,
or AED 4,000 + VAT at AED 500,000 and above, plus small fixed line items like knowledge and innovation
fees, and mapping or issuance items depending on the case. -
For title deed issuance, DLD’s own “Issue Title Deed” service page lists AED 250 plus a map fee and
knowledge and innovation fees, as of the DLD page update shown online.
You will sometimes see other guides quote AED 580 for certain admin items, which likely reflects older schedules or
bundled admin references. When numbers conflict like that, treat DLD’s live fee pages as the reliable baseline,
and keep a small buffer for transaction-specific add-ons.
Cash vs mortgage difference:
Finance the purchase and DLD’s mortgaged sale registration page lists a mortgage fee of 0.25% of the mortgage value.
On top of that your bank adds arrangement and valuation costs.
Agent commission and VAT:
Commission is not a government fee, it is market-driven. The common benchmark in Dubai resale deals is about
2%, and 5% VAT applies to VAT-registered service providers.
Quick Fact Table
| Cost item | Typical amount | Applies when |
|---|---|---|
| DLD transfer fee | 4% of sale value | Resale purchases |
| Trustee, service partner fee | AED 2,000 or AED 4,000 + VAT | Resale registration via trustees |
| Title deed issuance | AED 250 + related map, knowledge, innovation fees | Issuing the deed to buyer |
| Knowledge and innovation fees | Usually small fixed fees | Many DLD service transactions |
| Mortgage fee (DLD) | 0.25% of mortgage value | If buying with a mortgage |
| Bank arrangement fee | Often around 0.5% to 1% + VAT | Mortgage purchases |
| Valuation fee | Often a few thousand AED + VAT | Mortgage purchases |
| Agent commission | Commonly around 2% + VAT | Many resale transactions |
Yes. UAE banks lend to foreigners to finance property here, whether you live in the country or not. How much they lend depends on your residency status and the price of the property.
Loan-to-Value (LTV) Ratios
For properties under AED 5 million:
- UAE Nationals: Up to 80% LTV
- Expat Residents: Up to 75% LTV
- Non-Residents: Up to 60% LTV
For properties over AED 5 million:
- UAE Nationals: Up to 70% LTV
- Expats: Up to 65% LTV
- Non-Residents: Up to 50% LTV
Eligibility Requirements
- Minimum age: 21 years
- Maximum age at loan maturity: 65-70 years
- Minimum monthly income: AED 15,000-25,000
- Employment: Stable job with reputable company
- Good credit history
Required Documents
- Valid passport and UAE visa
- Emirates ID (for residents)
- Salary certificates and bank statements (6 months)
- Employment contract
- Property documents
Interest Rates
- Fixed rates: 3.5% – 5.5% per annum
- Variable rates: 3% – 5% per annum
- Rates vary by bank and borrower profile
Loan Tenure
- Standard: 15-25 years
- Maximum: Up to 25 years
Additional Costs
- Mortgage registration fee: 0.25% of loan amount
- Processing fees: 1% of loan amount
- Valuation fees: AED 2,500 – 3,500
- Life insurance: Required by most banks
Top Banks Offering Mortgages
- Emirates NBD
- Dubai Islamic Bank
- Mashreq Bank
- Abu Dhabi Commercial Bank (ADCB)
- HSBC UAE
“Off-plan” means buying a property before it’s built. You’re buying from the developer’s plans, drawings and specs rather than walking through a finished unit. It’s popular in Dubai because the entry price is usually lower than a completed property, and the value can rise while construction is underway, so you can be sitting on a gain by the time you get the keys.
What to know about off-plan:
-
Payment plans: Dubai developers spread the cost, often with payments that continue after handover, so you’re not funding the whole thing upfront.
-
Customization: you can often shape the unit to your taste before it’s finished, which you can’t do with a resale.
-
Investment potential: in a rising market like Dubai, the price can climb meaningfully between reservation and completion.
-
The risks: the main ones are delays and, rarely, cancellation. This is where the developer matters most. Check their track record and their record of delivering on time before you commit a dirham.
Off-plan remains a solid route in Dubai for both investors and people buying to live. Just do the homework on the developer first. That single step removes most of the downside.
Service charges are annual fees you pay to keep the shared parts of your building or community running. Every owner pays them, and they fund the things you don’t own outright but still use every day.
What Service Charges Cover
Common Area Maintenance
- Lobby and corridor cleaning
- Landscaping and gardens
- Parking area maintenance
- Elevator servicing
- Lighting in common areas
Facilities Management
- Swimming pool maintenance
- Gym equipment and upkeep
- Play areas
- BBQ areas
- Business centers
Utilities (Common Areas)
- Air conditioning in common spaces
- Electricity for shared facilities
- Water for landscaping
- Waste management
Security Services
- 24/7 security personnel
- CCTV monitoring
- Access control systems
- Perimeter security
Typical Costs
Charges are quoted per square foot of your unit, so a bigger place costs more even at the same rate.
Apartments
- Budget buildings: AED 8-12 per sq ft
- Mid-range: AED 12-20 per sq ft
- Luxury: AED 20-30 per sq ft
Villas
- Community villas: AED 5-10 per sq ft
- Standalone: AED 3-8 per sq ft
Payment Schedule
- Usually paid annually
- Some communities accept quarterly payments
- Paid to the homeowners association (HOA)
Example Calculation
1,000 sq ft apartment at AED 15 per sq ft = AED 15,000 per year
Before You Buy
- Charges can rise each year, typically 5-10%
- Ask for the service charge history so you can see the trend
- Fall behind and the developer can disconnect your utilities
- These fees have nothing to do with Dubai being tax-free, they are a separate running cost
What’s NOT Included
- Your own apartment utilities
- Internal repairs and maintenance
- Renovations and upgrades
- Parking fines
- Move-in and move-out fees
Who Actually Pays
- The owner is legally on the hook for payment
- In a rental, it’s usually passed to the tenant
- Spell out who pays in the tenancy contract so there’s no argument later
Buy AED 2 million or more of residential property and you qualify for the UAE Golden Visa, a 10-year renewable residency. It is one of the most common routes people take into long-term UAE residency.
What it takes
You need real estate worth at least AED 2 million, roughly USD 545,000. That can be one property or several, as long as the combined value clears the threshold.
What you get
- A 10-year renewable residency visa
- No sponsor required
- The right to sponsor your family
- Freedom to live, work, and study in the UAE
- No minimum time you have to be physically present in the country
What property counts
- Off-plan or ready both qualify
- Residential only, commercial does not count
- The property can be mortgaged through a UAE bank, but the value still has to meet the AED 2 million threshold
How you apply
- Buy qualifying property worth AED 2 million or more
- Make sure it is registered with the Dubai Land Department
- Submit the Golden Visa application through an approved channel
- Provide the paperwork: passport, property deeds, NOC from the developer
- Complete medical tests and Emirates ID registration
- Receive your 10-year visa
Things worth knowing
- You cannot sell the property for at least 3 years after the visa is issued
- If you do sell, you may have to reapply or put the money into another qualifying asset
- The value is judged on the purchase price in your sales contract
- A bank mortgage is fine, as long as the value still hits AED 2 million
Who you can bring
A Golden Visa holder can sponsor a spouse, children of any age, parents, and up to 3 domestic helpers. That is what makes the property route attractive for families, not just single investors.
For most investors, yes. The fundamentals that made Dubai work are still in place today: a growing economy, high yields, no tax on your returns, and strong demand against a controlled supply. Here is the case, with the numbers.
The economy
Dubai has spent years diversifying away from oil into finance, trade, tourism, and technology, and it shows. The Dubai Economic Report put GDP growth at 4.5% in 2022, and steady growth is expected to continue. Heavy investment in transport and new free zones keeps feeding demand for both homes and commercial space.
Prices and yields
Property values have climbed, with average apartment prices up roughly 30% from 2020 to 2023, led by prime spots like Dubai Marina, Downtown, and Palm Jumeirah. Rental yields remain among the highest of any major city, averaging 5% to 7% for residential property in areas like the Marina, JVC, and Business Bay. Population growth has kept demand strong enough that new supply has not swamped the key locations.
Policy and tax
The tax position is the clincher: no income tax, no capital gains tax, no property tax, and nothing on rental income. On top of that, the residency routes keep widening. The Golden Visa gives long-term residency to property investors, the Retire in Dubai visa targets retirees, and the Virtual Working Program lets remote professionals base themselves here. That security matters when you are buying to hold.
Location and infrastructure
Dubai sits between Europe, Asia, and Africa, and Dubai International Airport (DXB) is one of the busiest in the world. Big projects like the metro expansion, Dubai Creek Tower, and the Dubai South airport development, plus the profile boost from Expo 2025, all point to sustained demand in the surrounding areas.
Where to look
A few areas stand out: Dubai Creek Harbour, the mixed-use district set to house Dubai Creek Tower; Meydan, luxury stock close to Downtown with room to appreciate; JVC, affordable and high-yielding; and Business Bay, the central business district with steady demand for homes and offices alike.
No market is one-way, and Dubai has its cycles, so buy the right unit at the right price rather than assuming everything rises. But on balance, the growth, the tax regime, the location, and the visa incentives make 2025 a genuinely good year to buy here.