Buying in Dubai adds about 6.5% to the asking price. The 4% Land Department transfer fee, AED 580 title deed, 2% agency plus VAT and the trustee fee, calculated on your price.
Buying in Dubai costs roughly 6.5% on top of the asking price. That is the Dubai Land Department transfer fee at 4% of the price, a title deed and map fee of AED 580, agency commission at 2% plus 5% VAT, and a registration trustee fee of AED 4,200 for properties over AED 500,000. A mortgage adds bank arrangement, valuation and registration fees.
Yes. Foreign nationals can buy freehold property in designated areas of Dubai, which includes Palm Jumeirah, Downtown Dubai, Dubai Marina, Emirates Hills, Jumeirah Bay Island and Dubai Hills Estate. You do not need residency to buy, and ownership is registered in your name at the Dubai Land Department.
A property purchase of AED 2 million or more qualifies the owner for a 10-year UAE Golden Visa. The property must be completed or, for off-plan, bought from an approved developer. The visa can include a spouse and children.
Prime Dubai residential property typically returns 6% to 8% gross. Net yield after service charges is usually 1 to 1.5 percentage points lower, because service charges in prime towers run around 1.2% of value a year. Villa communities generally have lower service charges and lower gross yields than apartments.
Dubai has no annual property tax, no capital gains tax and no income tax on rent. The main one-off cost is the Dubai Land Department transfer fee of 4% of the purchase price, paid at transfer. Owners pay an annual service charge to the building, which is not a tax.
A cash purchase of a ready property in Dubai typically completes in two to four weeks from signing the Memorandum of Understanding. A mortgage purchase usually takes six to eight weeks because of bank valuation and approval. Off-plan purchases complete at handover, which can be years out.