Assistance In Buying Property In Dubai
You may feel slightly taken aback when you want to buy property in Dubai with all that rumors and unknowns. In this post, we will cover all the FAQs with detailed answers to provide you a complete picture.
Why use BSO ?
First, the BSO team provides you with professional expertise in the market. Our experts know all the ropes, including peculiarities of free-hold and lease-hold ownership as well as of transactions with off-plan and secondary units. Professional expertise is very important as you do your due diligence. Thus, with BSO, you will get the full picture of the market and understand your options and opportunities.
Second, BSO has extensive experience. To clarify, our sale-managers are highly familiar with the purchase procedure in details. Moreover, they have done it thousands of times and know how to close the deal quickly and successfully. So, with BSO, you will save your time thanks to not going to and fro collecting all the documents to submit.
Third, BSO ensures a high level of transaction security. We are fully aware of where the pitfalls may hide. And we check and double check them to exclude even the smallest risk of getting you into a fraud deal. Therefore, you may be sure you do not lose your money but acquire a great asset.
Are foreigners allowed to buy property in Dubai?
Yes, since 2002, foreign nationals are allowed to buy villas, apartments, etc. in Dubai. Rumors say only males can acquire the real estate unit in his name, but that is a lie. Dubai legislation does not bear any discrimination attribute. In other words, it does not restrict women rights to be an owner of a villa or apartment. The only requirement you need to fulfill is to be over 21 years old. That is all. So simple and easy.
As time went by, the Government did not just allow foreigners to invest in the local real estate market but facilitated such investments. To clarify, the Government grants a long-term UAE visa to certain investor categories. The latest modifications here came in 2019. Starting this, you may enjoy a 10-year residency in the UAE under the sponsorship of your property. We have already discussed the conditions in some of our earlier posts.
Documents to buy property in Dubai
As a non-resident, you shall have a valid passport when submitting the documents personally. If you act via your representative, he should provide a registered copy of your passport, his valid Power of Attorney and his passport or ID card. This will prove you authorized him to hold the transaction.
As a resident of the UAE, you shall provide your ID card additionally to the aforementioned documents.
The legal factors to think about before purchasing a property in Dubai
If you act via your representative who resides in Dubai, you shall notarize the Power of Attorney with a Notary Public. If you sign this document in your country, you need not only notarize it as well, but also legalize it with the UAE Embassy, and, then, legalize via the UAE Ministry of Foreign Affairs.
Besides, keep in mind the national language in Dubai is Arabic. Therefore, authorities deal only with documents written in Arabic or translated into Arabic.
The process to go through when buying property in Dubai
If you purchase an off-plan flat or villa, you need to:
- Sign a reservation agreement with your developer,
- Sign a sale contract,
- Get an Oqood,
- Apply for the title deed as soon as the unit is completed.
If you purchase a secondary unit, your steps are the following:
- Sign and register a Memorandum of Understanding,
- Get a No Objection Certificate (NOC),
- Submit documentation to the DLD.
The legal requirements to acquiring property in Dubai
First, the Power of Attorney shall be issued not later than two years ago.
Second, the Dubai Land Department (DLD) requires you shall pay your property in full with manager’s cheques.
At last, if the subject of the transaction is pledged at the moment when you sign papers, it is your responsibility to settle the mortgage. This task must be done before you apply for a NOC.
Taxes and fees you need to pay
If you buy a flat or villa, its value is not charged with taxes. In contrast, if you buy an office, its value is charged with 5%VAT.
However, in both cases you need to pay certain fees:
- DLD transfer fee of 4% of the purchase price+ AED 580.00 as an admin fee;
- Real estate agency fee of 2% of the purchase price;
- Oqood fee of about 4% of the purchase price (for off-plan assets) +5% VAT;
- No Objection Certificate issuance fee of up to AED 5,000.00 (for secondary assets) +5% VAT;
- Property registration fee of AED 2,000.00 for units of under AED 500,000.00 or of AED 4,000 for units of over AED 500,000.00 (if via DLD Registration Trustees offices) +5% VAT;
- Mortgage fee of 1% + 5% VAT.
As you see, there is a lot to know. At BSO, we are happy to help you go through all the steps and procedures hassle-free. Get in touch with our experts and let us assist you in closing a real estate transaction.