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

In Dubai you buy full ownership as a foreigner, but only in the designated freehold areas. The transfer runs through a Registration Trustee office of the Dubai Land Department, with a 4% registration fee on the sale price and a digital title deed as proof. There's no annual property tax — there is the housing fee of 5% of the rental value that runs monthly through your DEWA account, and for apartments the service charges.

2 min readLast updated:

First the order that is fixed on this site: in your first year you don't buy — you rent, you get to know the neighbourhoods, and only then do you decide. This article is for the moment you've got that far.

Where you may buy: the freehold zones

Foreigners can acquire full ownership (freehold) in Dubai, but only in the areas designated for it — the well-known names like Dubai Marina, Downtown, JVC and dozens of others. The current list is managed by the Dubai Land Department (DLD); check for every property whether it lies in a freehold zone before you talk any further. Outside those zones only long-term rights of use remain for foreigners. And bear in mind: a house you own doesn't automatically give a right of residence — although property above certain thresholds can in fact open a visa route.

The transfer: to the trustee office, 4% in hand

The transfer of ownership is tightly organised: buyer and seller (or their authorised representatives) appear at a Real Estate Registration Trustee office, which settles the transaction for the DLD. The core costs are the registration fee of 4% of the sale price — legally split between both parties, in practice often placed entirely with the buyer, so arrange this explicitly in the purchase contract — plus fixed amounts for the title deed (AED 250) and administration. The digital title deed and map come by email from the DLD; that document is your proof of ownership. If you buy off-plan (new build on the drawing board), do so only with projects that are registered with the DLD, where your payments run through the project account — and weigh the developer's track record just as heavily as the artist's impression.

And after that: no tax — but a fee and the service charges

An annual property tax such as almost every other country in this series has, Dubai doesn't know. What there is, you partly know already as a tenant: the housing fee of 5% of the annual rental value of your home, collected monthly via your DEWA account — as an owner calculated on the official rental value according to the index. And for apartments the building's service charges come on top, per square metre per year; they differ considerably per tower and belong in your sum before the offer, not after. Whoever calculates for the long term also reads why Dubai builds no pension scheme for you — the house is often part of the answer there.

In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but applied to your situation — in your order, tickable, and with the deadlines monitored. See the whole journey to Dubai.

What this rests on

The facts in this article come from these official pages. Rules change — when in doubt the source is leading, not this article.

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