Frequently asked questions about buying property in Dubai
Here we answer the questions buyers from Germany, Austria and Switzerland ask us most – briefly, factually and grouped by topic. Each answer links to the matching guide if you want to go deeper. Fees and thresholds change occasionally; verify them before buying.
Guides by topic
- Buying: Buy property in Dubai and buying process
- Costs: Purchase costs
- Off-plan: Off-plan property
- Golden Visa: Golden Visa through property
- Financing: Mortgages for foreigners
- Renting: Renting out property
- Taxes: Tax for DACH buyers
- Terms: Glossary
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Frequently asked questions
Buying
Can foreigners buy property in Dubai?
Yes, in designated freehold areas foreigners may own apartments, villas and plots outright. These include Downtown, Dubai Marina, Palm Jumeirah and Business Bay. Residence or a visa is not required.
How does a property purchase in Dubai work?
After selection and reservation comes the contract (SPA, or MOU/Form F for resale), then payment and registration with the Dubai Land Department. Resale ends with the title deed, off-plan with Oqood registration. Details in our buying process guide.
Do I need to be in Dubai to buy?
No, many steps can be done digitally, such as reservation and signing the contract. A legalised power of attorney can be used for certain appointments. We still recommend a viewing.
How long does a resale purchase take?
For cash purchases about four to eight weeks from agreement to transfer are common (VERIFY). With financing or a seller's mortgage it often takes longer. The developer NOC and bank appointments are key.
Off-plan or ready property – which is better?
Off-plan offers staged payment plans and often lower entry prices, with construction and timing risk. Ready homes generate rent immediately and can be viewed. The right choice depends on goals, budget and horizon.
Which area suits first-time buyers?
It depends on your goal: for letting to professionals, central areas like Business Bay or Dubai Marina are in demand; for moderate budgets e.g. JVC. See our overview of Dubai areas.
Costs
What purchase costs apply?
The main item is the DLD transfer fee of 4% of the price plus admin fees. Depending on the case, agency commission, registration fees and bank costs for financing apply. See our purchase costs guide.
How high is the DLD fee?
The Dubai Land Department transfer fee is 4% of the price. Smaller admin and registration fees apply (VERIFY current amounts). For off-plan projects, developers sometimes cover part or all of it as a promotion.
What are service charges?
Service charges are annual fees for maintenance, security and common areas, calculated per square foot. They vary widely by building and amenities. Check them before buying, as they reduce net yield.
Is there an annual property tax?
Dubai currently has no general annual property tax as in Europe. Occupants pay a housing fee via the DEWA bill based on rent or a rental value (VERIFY). It is not a property tax but should be budgeted.
Who pays the agency commission?
For resale, buyers typically pay about 2% plus VAT (VERIFY). For off-plan purchases from the developer, the developer usually pays the commission. Clarify this in writing before reserving.
Off-plan
What does off-plan mean?
Off-plan means buying a property before or during construction directly from the developer. Payment follows an instalment plan to handover, sometimes beyond. More in our off-plan guide.
How safe are off-plan payments?
Buyer payments must go to a project escrow account under regulatory supervision. The developer receives funds based on construction progress. Check project registration and escrow number before each payment.
What if handover is delayed?
Delays can happen; the contract usually sets a grace period and possible remedies. In serious cases the regulator may step in. Choose developers with a traceable track record, see our developer overview.
What is a post-handover payment plan?
With a post-handover plan part of the price is paid after handover, often over two to five years. Rental income can then cover some instalments. Check when full ownership transfers.
Can I sell an off-plan property before completion?
Yes, often after paying a share set by the developer (often 30–40%, VERIFY). A developer NOC is needed and fees apply. Such assignments are no guaranteed profit.
What is snagging?
Snagging is the defect inspection before or at handover. Defects are reported to the developer for rectification. Many buyers hire an independent inspector.
Golden Visa
Do I get a Golden Visa with property?
From a property value of AED 2m a ten-year Golden Visa is possible. Off-plan property may qualify under conditions. Details in our Golden Visa guide.
Can I combine several properties?
Yes, several properties can be combined to reach AED 2m (VERIFY current conditions). Ownership in your name and correct registration matter.
Is the Golden Visa possible with a mortgage?
In principle yes, if authority and bank conditions are met (VERIFY). Proof of the paid share is often required. Clarify before buying.
Can my family be included?
Spouses and children can usually be sponsored as dependants. Authorities set the exact requirements. Each family member receives their own Emirates ID.
Must I live in Dubai to keep the visa?
The Golden Visa has no requirement to stay in the UAE regularly (VERIFY). That distinguishes it from many other visas. For tax purposes the visa alone does not end home-country residence.
Financing
Can foreigners get a mortgage in Dubai?
Yes, several UAE banks lend to non-residents with stricter requirements. Higher equity and income proof are common. More in our financing guide.
How much equity do I need?
Banks often require 40–50% equity from non-residents (VERIFY). Purchase costs, usually not financed, come on top. Keep reserves for FX and extra costs.
Can I finance off-plan?
Banks usually finance off-plan purchases only near handover. Until then you pay instalments from own funds under the developer's plan. Plan the handover payment early.
Can I finance with a German bank?
Direct financing of Dubai property by DACH banks is rare. Some buyers instead borrow against a home-country property. That has tax consequences, see our pages for Germans and Swiss buyers.
What are interest rates?
UAE mortgage rates often track EIBOR and therefore indirectly US rates. Offers vary by bank, term and fixed or variable rate. Compare total costs including fees.
Renting
What rental yield is realistic?
Gross yields in Dubai are often quoted around 5–8%, depending on area and property (VERIFY). Net after service charges, management and vacancy is lower. Always calculate with building-specific data.
Long-term or holiday letting?
Long-term letting offers predictable income with little effort; holiday letting potentially more but volatile returns. Holiday letting needs a DTCM permit. More in our rental guide.
What is Ejari?
Ejari is Dubai's official tenancy registration system. Every long-term lease must be registered. Without Ejari tenants cannot, for example, connect utilities.
Can I raise the rent at any time?
No, rent increases are tied to the RERA rental index and notice periods. Increases are usually only possible on renewal with advance notice (VERIFY). This protects tenants and makes income more predictable.
Do I need a property manager?
Not necessarily, but usually sensible for owners abroad. A manager handles tenant search, Ejari, maintenance and accounting for a fee. For holiday letting an operator is practically essential.
Taxes
Do I pay tax on rent in Dubai?
The UAE currently levies no personal income tax on private rent. Corporate structures may be subject to corporate tax. Your home country may still tax the income, see our tax guide.
Is there capital gains tax on a sale?
Not for individuals in the UAE currently. Whether your home country taxes the gain depends on residence, holding period and treaty. Have it checked before selling.
Does a double taxation treaty apply?
Austria and Switzerland have treaties with the UAE; Germany's expired at the end of 2021 (VERIFY). Details on our pages for Germans, Austrians and Swiss buyers.
Is VAT due on the price?
First supplies of residential property are generally zero-rated in the UAE and resales mostly exempt (VERIFY). Commercial property is treated differently. VAT applies to commission and service charges.
Does moving to Dubai end my tax liability?
Not automatically: residence and centre of life under home-country law decide. A visa or property alone is not enough. Have a move planned with a tax adviser, see relocation.
Security
How secure is ownership in Dubai?
Ownership is registered centrally with the Dubai Land Department and evidenced by a title deed. RERA regulates the market; brokers and projects must be registered. This provides a reliable legal basis.
How do I recognise a reputable broker?
Reputable brokers hold a valid RERA registration (BRN) and advertise approved listings (Trakheesi). Details can be checked in the Dubai REST app. Popolari Estates shows its ORN and broker card on every page.
How do I check a developer?
Look at completed projects, delivery record, build quality and the project's RERA registration with escrow. Visit finished buildings. Profiles are in our developer overview.
How do I protect myself from fraud?
Never pay into private accounts, only escrow accounts or official trustee offices. Ask to see the title deed or Oqood and verify it via official apps. Be sceptical of extreme discounts.
What happens to the property on death?
Without a will, local succession law may apply, with unfamiliar outcomes for non-Muslims (VERIFY). Many buyers therefore register a will, e.g. with the DIFC Wills Service. Align it with home-country succession planning.
Is Dubai politically stable?
The UAE is regarded as politically stable with reliable administration and a USD-pegged currency. Some residual risk remains, as with any foreign investment. Diversify according to your risk appetite.
This article is for general information only and does not replace tax or legal advice.