Have you ever considered buying a property in the UAE to live in or invest in? Have you wondered whether foreigners are eligible to buy properties in different Emirates here, especially Dubai?
If any of these questions came to your mind, then this article is definitely for you! It will give you all the answers you need to assist you in buying a property in Dubai.
Who Are the Foreigners that Can Buy Properties in Dubai?
When we say foreigners we don’t only mean non-residents. On the contrary, whether you’re a non-resident or an expat already residing in UAE you are surely welcome to buy a property in Dubai.
What Types of Properties Can Foreigners Buy in Dubai?
In Dubai, there are various types of properties that differ in terms of ownership and eligibility for buying and selling for foreigners.
The Dubai government implemented new rules for property purchasing and ownership in 2002 resulting in big changes. These allowed them to buy freehold and leasehold properties only detailed below:
Freehold Properties
With this type of property, the owner has full authority to buy, rent, or invest in the property or the land that lies on it. Non-citizens and expats can buy freehold properties in Dubai, in the freehold area designated by the DLD (Dubai Land Department).
The DLD updates the freehold areas on yearly basis and some of these areas are:
- The Palm Jumeirah
- Downtown Dubai
- Burj Khalifa
- Dubai Marina
- Emirates Hills
- Barsha Heights
- Blue Water Island
- Business Bay.
Leasehold Properties
With Leasehold types, the owners buy the right to benefit from the property for a long term period and it’s usually for 99 years similar to a long-term lease. The owner in this case is not permitted to remodel or change the property without the consent of the freehold owner.
Can Foreigners Buy Properties for Business Purposes?
Yes, they can buy properties for commercial or residential purposes. As a foreigner, all you have to do is make sure you have the necessary documents, such as a valid Trade Licence, to use the property for commercial purposes.
Foreigners can also invest in renting out their properties to tenants and have companies manage the entire process for them.
What Taxes Are Imposed on Foreigners Who Buy Property in Dubai?
We’ve got the best news for you as you can enjoy no imposed taxes! As part of encouraging foreign investment in the UAE, the government established a tax system that supports a no-tax concept.
The UAE government no longer taxes rental income or properties purchased by foreigners; this ensures a healthy investment environment for them.
Can Foreigners Acquire a Residence Visa for Buying Properties?
Yes, they can easily obtain a long-term residence visa, which is one of the many advantages of buying property in Dubai for foreigners. The Property Investor visa in UAE can be obtained for three or five years, depending on the value of the property.
If you’re curious about the price, we’ve got this covered for you. It’s simple: if foreigners own a property worth AED 5M, they are eligible for a 5-year residence visa. Alternatively, for the 3-year residence visa, they must own a property worth AED 750K to acquire it.
But wait, there’s more! The Abu Dhabi resident office is making significant efforts to attract investors to the UAE. One of these is assisting investors in obtaining a golden visa after purchasing a property worth more than AED 2M from Aldar’s project.
Can Foreigners Get a Loan for Buying Houses in Dubai?
Yes, foreigners can apply for a mortgage in Dubai through national and private banks in order to buy a property. The rules for obtaining loans differ from one bank to another and are based on various factors such as monthly income and country of residence.
Foreigners can obtain a loan after meeting the requirements and submitting the needed documents.
What Are the Steps You Should Take to Buy a Property in Dubai?
In order for foreigners to buy a property in Dubai, there are easy and simple steps to follow and they differ depending on whether you are purchasing a resale unit or a new one:
- Choosing a developer that’s approved by the DLD (for new units)
- Choosing a real estate agent that is registered with the Real Estate Regulatory Agency
- Getting a loan (in case it’s needed)
- Applying for No Objection Certificate (in case of resale or new unit)
- Registering the property at DLD under your name.
What Are the Benefits for Foreigners Buying a Property in Dubai?
As you can see, there are numerous benefits to buying a property in Dubai for non-residents and expats. The most prominent of which is obtaining a residency visa.
Furthermore, we can add a lot more to the list starting with the tax-friendly system they provide to the competitive prices, not to mention making the entire process as easy as possible.
If you’re thinking about buying a property in Dubai, it’s your time now to make use of all the facilities available here for foreigners to invest in real estate. Think big and get your place now.
You can also check this article about foreigners’ ownership in UAE on Property Finder to know more about this topic.
