Buying a house in Dubai: freehold in the designated zones, 4% at the DLD — and after that no tax, but a fee

Yes, as a foreigner you buy full ownership (freehold) in Dubai, but only in the areas designated for it. The transfer runs through a Registration Trustee office, an approved transfer office of the Dubai Land Department (DLD), Dubai's real estate authority. On top of the price come:

• a registration fee of 4% on the sale price;
• a fixed amount for the trustee;
• a digital title deed as proof of ownership.

Individuals pay no income tax in the Emirates, not on rent either. What does come back every year, in an apartment complex, are the service charges, the running costs of the building. The trap is in new builds. If you buy off-plan, check that your money ends up in the legally required project account.

In your first year you don't buy. You rent, you get to know the neighbourhoods, and only after that do you decide — why that order is fixed. This article is for the moment you are ready.

Where may I buy as a foreigner?

Regulation No. 3 of 2006 designates the areas where non-UAE nationals may acquire property. That can be as ownership without time restriction, or as a usufruct or leasehold right for up to 99 years. Which form applies is shown per plot on the DLD maps. Later decisions have added areas.

The government portal adds two things that matter:

• You do not have to live in the Emirates to buy.
• There is no age limit.

Check with the DLD for every property whether it lies in a designated area, before you talk any further.

Dubai is not representative of the rest of the Emirates in this. In Abu Dhabi foreigners buy in nine designated areas, and in Sharjah only a usufruct right of at most a hundred years. A purchased home also does not automatically give a right of residence, although property from AED 2 million opens the route to a Golden Visa.

What does the transfer cost?

Item	Amount
DLD registration fee	4% of the sale value
Trustee fee, price below AED 500,000	AED 2,100
Trustee fee, price from AED 500,000	AED 4,200
Title deed	AED 250
Map of an apartment or building	AED 250
Registration of a mortgage	0.25% of the mortgage amount

Buyer and seller appear, in person or by power of attorney, at the trustee office. If there is still a mortgage on the property, you pay with three manager's cheques (cheques issued by the bank itself):

• one to the bank or the developer, for the debt;
• one to the seller, for the remainder;
• one to the DLD, for the 4%.

A non-resident foreigner identifies with a passport. Whoever lives in the Emirates does so with an Emirates ID. The title deed and the map arrive digitally by email.

Two deadlines from the DLD guide belong in your planning. A transaction must be registered within sixty days of signing the sale contract. Later means a fine on top of the fees. And as long as there is no owners association yet, you need a no objection certificate from the developer, showing that the seller has paid all service charges.