Dubai is one of the few global cities where non-residents can own prime property outright, and its market moves quickly. That speed rewards preparation: understanding where foreign ownership is permitted, and what the transaction will actually cost.
Where foreigners can own
Foreign buyers can acquire freehold only in areas designated under Regulation No. 3 of 2006 and later amendments. These include Palm Jumeirah, Downtown Dubai, Business Bay, Dubai Marina, Emirates Hills and Dubai Hills Estate, among others. The right attaches to specific plots, so every property should be verified with the Dubai Land Department.
Costs in practice
- Transfer fee: 4% of the price. The Dubai Land Department lists 2% for each party, but contracts often place the full amount on the buyer, so the split should be agreed in writing
- Trustee and registration fees: fixed charges that are small relative to the price
- No annual property tax is generally levied on residential owners, though service charges apply
Residence is a separate question. A property purchase of AED 2 million or more can support a long-term residence visa, as I describe in my article on the Golden Visa and property.
What to examine
For completed homes, the title deed, outstanding charges and service-charge history. For off-plan, the developer’s record and escrow protections, as set out in my note on off-plan residences. For families, see also why Dubai appeals to mobile families.
Private acquisitions in Dubai are common, particularly for villas on the Palm and in established gated communities. Contact Vincent to discuss a brief.
This article is general information, not tax or legal advice. Rules change, so confirm them with your own advisers before committing.