Property in Dubai: Prices, Tax and the Buying Process
In Dubai a foreign buyer can take full ownership (freehold) in designated areas. There is no annual property tax, no stamp duty, and rental income is not taxed. The cost of buying is about %4,3of the price, the lowest of the three countries we represent. This page sets out where the figures come from and what to watch for.
In our portfolio 35 schemes live: 33 in Dubai and 2 in Ras Al Khaimah. Prices run from AED 550,000 with AED 8,888,888 with a median of AED 1,000,000. By developer: Binghatti 17, Ellington 11, DAMAC 7.
Why Dubai
First, tax. There is no stamp duty on the way in and no property tax while you hold it, and rental income is not taxed. That turns the same gross yield into a higher net yield than in the United Kingdom.
Second, the entry cost. At about 4.3% of the price the cost of buying is low, and on an off plan purchase the payments are spread until completion; you are not putting the whole of your capital in at the start.
Third, the yield. Gross rental yield across our schemes reaches 7%. In return, supply is growing fast: in Dubai the choice of scheme and district is far more decisive than it is in the United Kingdom. A high yield promised in the wrong district can mean no tenant after handover.
Purchase costs
| Item | How much | Note |
|---|---|---|
| DLD transfer fee | 4% of the price | Paid to the Dubai Land Department |
| Oqood registration | A fixed amount | Registration of an off plan contract in the DLD system |
| Commission | Usually 2% | On a completed home; on an off plan purchase the developer covers it |
| Property tax | None | No annual property tax applies |
| Rental income tax | None | Rental income is not taxed in the UAE; you may still have to declare it where you are resident |
To see it with your own figure, use the Dubai Purchase Cost Calculator page; it works out the off plan and completed scenarios separately.
How buying off plan works
Off plan sales in Dubai are tightly regulated. The money the developer takes does not go straight to the company: buyer payments are held in an escrow account registered with the property regulator, and released as construction progresses. The contract is registered with the Dubai Land Department through the Oqood system, so an off plan home is on the state’s register from day one.
Payment plans vary by scheme: the common pattern is instalments until completion and the balance on handover. Some schemes offer plans that run past handover. Each scheme’s own plan is written on its listing page.
What to watch for
- Choice of district. The same budget buys either a small apartment near the centre or a large one further out. Tenant demand is not the same in those two cases.
- Completion date. On an off plan purchase the timetable has to be read together with the developer’s record.
- Service charge. In Dubai the charge is calculated per square metre and can be high in amenity rich schemes; take it off the net yield.
- Currency. The dirham is pegged to the US dollar; if you are looking at this in pounds or euros, your currency risk is dollar risk.
- Investor visa. A visa through property is possible but subject to thresholds; the current conditions need confirming before you buy.
The buying process, step by step
- Budget and district. Work out the total cost with the calculator, then narrow the district.
- Choosing the scheme. Floor plan, aspect, completion date, payment plan and service charge.
- Reservation. The reservation form and the first payment.
- Contract. The sale contract is signed and the Oqood registration is made.
- Payment plan. The instalments are paid into the escrow account.
- Handover and title. The balance is paid and the DLD title deed is issued.
- Letting and management. Short let or long let; the yield and the cost of the two are different.
Frequently asked questions
Can I take full ownership in Dubai as a foreigner?
Yes, in the designated freehold areas. Every scheme in our portfolio is in one of them; the title deed is issued in your name by the Dubai Land Department.
Will I pay tax on my rental income?
Rental income is not taxed in the UAE. If you are resident elsewhere you may have to declare it there; for residents of Türkiye the double taxation treaty applies.
Is buying off plan risky?
Because payments are held in an escrow account and the contract is registered in the DLD system, the framework is strict. The real risk is a delay in handover, which is why we look at the developer’s delivery record.
Can I buy remotely?
Yes. Contracts can be signed electronically, payments are made by transfer and the title transfer can be completed by power of attorney.
Can I get a mortgage in Dubai?
Yes, there are banks that lend to non resident buyers; the deposit required is higher than for a resident. We set the process out on the Financing Solutions page.
Where to start
Put your budget through the Dubai Purchase Cost Calculator page and see the off plan and completed scenarios side by side. Then look at the schemes we have live . If you want to compare Dubai with the United Kingdom and Greece, our investing in property abroad page is there for that.
Tell us what you are looking for and we will send you three schemes that fit, with the figures: get in touch.