Frequently Asked Questions
Transaction and Payment
Yes, you can pay with cash or via bank transfer. These options are typically accepted by all property developers and real estate agents in Dubai.
Yes, you can pay with cryptocurrency. The supported cryptocurrencies vary depending on the property developer you are purchasing from.
The fees include:
- DLD fees: 4% of the property price + admin fees (AED 580 for apartments/offices, AED 40 for off-plan)
- Registration fees: AED 2000 + 5% VAT for properties below AED 500,000, and AED 4000 + 5% VAT for properties above AED 500,000
- Mortgage registration fees: Up to 0.25% of the loan amount + AED 290
- Property service charges: Ranging from AED 3 to AED 30 per square foot
The required documents include:
- A copy of a valid passport for non-residents
- Or A copy of a valid Emirates ID
- A copy of the sale and purchase contract
Investing
Dubai offers high rental yields, no stamp duty, and no property taxes. Additionally, investors can apply for residency visas through property investments.
The residence is comprised of 5 bedrooms, 2 master bathrooms, 4 on-suite guest bathrooms, 2 powder rooms, 2 offices, 2 dressing rooms, a media room, an oversized eat-in gourmet chef’s kitchen, and a sprawling 1,100 square-foot Great Room perfectly situated in the prime southwest corner of the floor.
UAE residents can buy properties in designated freehold areas. Off-plan developments are attractive due to lower prices and flexible payment plans.
Benefits include a stable economy, tax advantages, high rental yields, modern amenities, freehold ownership, and eligibility for residency visas.
Yes, owning a property valued at AED 750,000 or more qualifies you for a renewable two-year residence permit. Properties valued at AED 2 million or more can qualify for a renewable 10-year residence permit.
Freehold properties offer full ownership rights and long-term investment potential but come with higher initial costs. Leasehold properties are more affordable with limited ownership rights and potential appreciation.
Benefits of Purchasing Off-Plan
Off-plan properties can appreciate significantly in value from the time of purchase to completion, providing potential for substantial capital gains.
Developers often offer flexible payment plans, allowing buyers to spread out payments over the construction period, which can ease financial pressure.
Off-plan projects typically include modern amenities and facilities. Buyers may also have options to customize certain aspects of the property.
Early investors often benefit from lower launch prices, which can increase in subsequent phases of the development.
Risks of Purchasing Off-Plan
Delays in construction can push back the completion date, affecting your plans and potentially leading to additional costs or missed rental income.
There is a risk that the finished property may not meet the expected quality or specifications. Thorough due diligence and inspections can mitigate this risk.
Economic conditions and real estate market fluctuations can impact property values, affecting the potential return on investment.
The reputation and financial stability of the developer are crucial. A developer facing financial difficulties may struggle to complete the project on time or to the required standard.
Changes in laws or regulations can impact off-plan investments. It is important to stay informed and seek legal advice to navigate any potential issues.
Process for Purchasing Off-Plan Properties
- Developer Reputation: Begin by researching developers to ensure they have a strong track record of completing projects on time and to a high standard. Look for reviews, past project quality, and financial stability.
- Project Details: Evaluate different off-plan projects, considering factors such as location, design, amenities, and future potential. Consider how these factors align with your investment goals or living requirements.
- Legal and Financial Advice: Consult with legal and financial advisors to understand the implications of purchasing off-plan properties, including the legal framework and financial commitments.
- Review the SPA: Carefully review the sales and purchase agreement, which outlines all terms and conditions of the purchase, including payment schedules, construction timelines, and any penalties for delays.
- Legal Review: Have a legal advisor review the SPA to ensure all clauses are fair and in your interest before signing.
- Payment Plan: Off-plan properties often come with staggered payment plans tied to construction milestones. Initial payments may be a significant percentage of the property price, with subsequent payments due at various stages of construction.
- Escrow Account: Ensure payments are made into an escrow account, which is mandated by the Dubai Land Department (DLD) to protect buyers’ interests and ensure funds are used for the project.
- Regular Updates: Stay informed about the progress of construction through regular updates from the developer. Visit the site periodically if possible.
- Independent Inspections: Consider hiring an independent inspector to verify that construction quality and timelines are being adhered to.
- Inspection: Before handover, conduct a thorough inspection of the property. Ensure that it meets all agreed specifications and quality standards.
- Snag List: Create a snag list of any defects or unfinished work that needs addressing before you take possession. Developers are typically required to rectify these issues.
- Final Payment: Make the final payment once the property is ready for handover.
- Title Deed: Register the property with the Dubai Land Department to obtain the title deed. This step formalizes your ownership and involves paying the registration fees.
Taxes
No, residential properties in the UAE are not currently subject to VAT.
Key points include no income tax, no wealth tax, VAT exemptions for residential properties, and no capital gains tax for individual sellers. However, municipal fees and service charges may apply.
The fees include:
- DLD fees: 4% of the property price + admin fees (AED 580 for apartments/offices, AED 40 for off-plan)
- Registration fees: AED 2000 + 5% VAT for properties below AED 500,000, and AED 4000 + 5% VAT for properties above AED 500,000
- Mortgage registration fees: Up to 0.25% of the loan amount + AED 290
- Property service charges: Ranging from AED 3 to AED 30 per square foot
Legal
Yes, purchasing a property in Dubai can make you eligible for a residency visa. The UAE government offers several visa programs based on property investment, including 3, 5, and 10-year visas. 5-10 Year visas are known as golden visa.
DLD stands for Dubai Land Department, the government body responsible for property and real estate legislation, organization, and services in Dubai.
Foreign nationals can own property in designated freehold zones with full ownership rights for up to 99 years. Title deeds are issued through the Dubai Land Department.
Foreign nationals can purchase property with complete ownership rights in designated freehold zones. In other areas, tenancy rights over the physical structure apply.
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