The list of Frequently Asked Questions
A transfer fee is payable if you transfer your property to someone else. It is an administrative charge levied by the primary developer.
You can get a two-year visa when you purchase a property in Dubai that is:
Note 1:
This one million does not include the closing cost. You can read about the closing cost and other fees of buying a property in Dubai in this article.
Note 2:
If you decide to get a visa after few months from buying the property, then the purchase price will not be considered. You should conduct a property valuation, and the result of this valuation should be AED 1,000,000 or more to be eligible to get the visa. The valuation considers few factors e.g, the value of the last 10 sales transactions within the last 3 years, the current market property listing prices, the condition of the property, and others…
With the new long-term visa, for investors who invest in property value of AED 5 million or more, a 5-year visa is granted. The renewable 10 year-long visa is for investors setting up start-ups, businesses, or branches of their companies of valued AED 10 million or more as long as non-real estate investments are not less than 60% of the total investment. It also applies to spouses and children, with conditions. The UAE announced a new law that provides a 5-year residency visa for retired expatriates with the possibility of renewal for those who wish to stay longer.
Expatriates over 55 years of age are eligible if they have an investment in a property worth AED 2 million, have a minimum of AED 1M in savings, and an active income of at least AED 20,000 per month.
No, you don’t have to pay tax if you are a resident abroad. You only pay if the Dubai property is designed for living in, such as your own home, and student and employee accommodation. Then it is considered residential and exempt for VAT purposes. However, 5% VAT applies to commercial properties.
Typically, developers delay the staggered payment schedule if a property is not completed on time.
While resident expatriates can generally borrow between 70% and 80%, non-residents can generally borrow 60% to 70%. It all depends on the lender, and the project they are lending on.
Developers reserve the right to cancel the property reservation agreement and re-possess the title of the property in case of default from the property purchaser. In such a case, the property purchaser typically stands to lose the installments paid already and 30% of the property value.
If the property purchaser delays his installment payment beyond a grace period of normally 30 days from the date when the payment is due, they are usually charged interest at the rate of approximately 6%, and the developer typically reserves his right to cancel the contract.
a) Liberalisation of the real estate sector – ex-pats can now own property
b) High tax-free yields on freehold property rental
c) Globalisation and its effects on property prices in metropolitan cities worldwide
d) Favourable interest rate environment
e) Mortgages & homeowner finance available
f) Granting of “permanent” residency upon purchase of freehold properties
g) Great Value – Real estate land & apartment valuations are cheap compared to international prices
h) Conducive lifestyle: safe, tax haven, secondary, and tertiary home for international buyers
i) Dubai’s robust economic growth p.a.(GDP)
j) Dubai’s robust population growth p.a.
k) Large mid-income population bracket with high disposable income
l) Dubai is the regional entrepôt & tourism center
m) UAE is an open, welcoming & tolerant state with investor-friendly business policies
Freehold property is any estate that is “free from hold” of any entity besides the owner. Hence, the owner of such a property enjoys free ownership for perpetuity and can use the property for any purposes however in accordance with the local regulations.
The owner of a freehold title of real estate enjoys the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title; he has the right to occupy, use and enjoy his property forever (“in perpetuity”) or until he transfers the title to a new owner and his heirs are entitled to inherit his title upon his death.
Typically, the prospective Buyer and Seller enter into an MOU, wherein the buyer commits to purchase the property and the seller commits to sell the property. In a purchase transaction, the buyer pays an initial booking deposit (of not more than AED 100,000 for villas and apartments) to the seller.
If the buyer withdraws from the transaction, the buyer forfeits his booking deposit. If the seller withdraws from the transaction, the seller refunds the booking deposit amount. The buyer pays the balance considered to the seller upon transfer of the property to the buyer.
Most studios and one-bedroom units are the same size. Some units have balconies and some do not. Sometimes the ones located on the corners of the building are slightly bigger. Retail shops on the ground floor vary in size and are priced accordingly.
The buyer of a freehold property in Dubai only needs to provide a copy of his passport papers to purchase a property in the primary market, i.e., directly from a developer. A company purchasing a property must provide the developer the company’s registration documents (Articles of Incorporation, Registration Certificate, POA of the person signing on behalf of the company, and Board of Directors Resolution).
Either entity, i.e., a person or a company, needs only to sign a property reservation contract with the developer to purchase a property. On handover of the property to the property purchaser, the property purchaser will have to register his property at the Govt. of Dubai Lands Dept. to obtain a title deed.
The property purchaser would be responsible for paying the fees to the Govt. of Dubai Lands Dept. to obtain a title deed (this normally amounts to 2% of the property value). The property value must be fully paid up so as to obtain a Title Deed from the Govt. of Dubai Lands Dept.
a) Can all family members get a UAE residence visa: i.e. Father, Mother, Father, and children under 18 and unmarried daughters?
Yes. Expatriate employees or employers can obtain a residency visa There are three ways they can change their status from an entry permit holder to a resident visa holder: official employment, company registration, and real estate acquisition.
Once they have a valid residency permit, male residents can sponsor his spouse and children (under 18 years of age) and any unmarried daughters above the age of 18 years.
Expatriate employers are issued residency visa for three years, while expatriate employees are issued residency visa for 1 to 2 years, depending on their labor contract.
The UAE cabinet granted long-term visas to certain expatriates such as entrepreneurs, specialized talents and researchers in the knowledge and science field, and outstanding students, with some conditions.
Find out more here.
b) Who issues the residence visa and is it guaranteed?
The Government of Dubai issues it and it is guaranteed as long as the property purchaser owns the property, clears all security and medical tests, and is not rejected by the Ministry of Labor and Social Affairs.
c) If the property purchaser is not living in Dubai but plans to in the future, what will be the procedure to obtain a residence visa?
The type of residency visa you’re entitled to depends on the value of the purchased property. Once the property purchaser buys a property, he/she is automatically entitled to obtain a residence visa.
Applying for residency visa can be done either on the website of Federal Authority for Identity and Citizenship (ICA), which is the eChannel for citizenship and residency, or the General Directorate of Residency and Foreigners Affairs (GDRFA), which works under the UAE ministry.
d) If the property purchaser is not living in Dubai can they get a visa in a different person’s name such as their employees or other family members etc.?
No, only the principal property purchaser gets a residence visa but may sponsor his/her dependents.
The above mentioned are indications and may vary depending on the location and quality of the project.
The primary real estate market consists of new properties, which include new launches and ongoing projects from the developer.