What taxes must be paid when buying property in the UAE?

The main mandatory payment is the Dubai Land Department (DLD) Fee, which is 4% of the property value. In addition, the buyer pays an agency commission (around 2%) and minor administrative fees. There is no annual property ownership tax in the UAE.

Can foreigners buy an apartment with full ownership (Freehold) anywhere in the UAE?

No, foreign nationals can only purchase property with full ownership (Freehold) in specifically designated zones (Freehold Zones), such as Dubai Marina, Downtown Dubai, or Palm Jumeirah. In other areas, only leasehold agreements are available.

What are the main mortgage terms in the UAE for non-residents?

UAE banks provide mortgages to non-residents. The maximum loan amount usually covers 50% of the property value. The loan term is 15-20 years, and the down payment ranges from 25% to 50% of the home's value.

What is the minimum investment amount required to get a UAE Residence Visa?

To obtain a two-year Residence Visa, the investment in real estate must be a minimum of 750,000 AED ($204,000). To obtain the Golden Visa (for 5 or 10 years), the minimum investment amount is 2,000,000 AED ($545,000).

What is more profitable: buying ready property (Secondary) or a new build (Off-Plan)?

Off-Plan property often offers flexible payment plans (developer installments) and higher potential for capital appreciation. Ready (Secondary) property allows for a faster closing and immediate handover of keys, but requires a larger amount of funds upfront.

Buy Apartment in Dubai: Foreigner's Guide to UAE Residence Visa

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Complete Guide 2025: How to Buy Your First Apartment in Dubai and Get a UAE Residence Visa (Step-by-Step)

Homenly 🏡 News Oct 31, 2025

The United Arab Emirates, especially Dubai and Abu Dhabi, is one of the most attractive global real estate markets for foreign investors. A stable economy, the absence of annual property taxes, and the opportunity to obtain a Residence Visa make buying a home in the UAE a profitable investment and a step towards a comfortable life.

This SEO-optimized guide provides a complete step-by-step instruction to help you buy your first apartment in Dubai or another emirate.

1. Why the UAE? Key Advantages of Buying Property

Before starting the process, it's essential to understand the key benefits that attract foreigners:

No Annual Taxes: You do not pay annual property tax, capital gains tax on sale, or rental income tax. Only one-time fees are paid upon purchase.
Residence Visa (Residency Permit): By investing from 750,000 AED ($204,000), you can obtain a two-year Resident Visa. By purchasing property worth 2,000,000 AED ($545,000), you can apply for a Golden Visa (5-10 years), which offers significantly more benefits.
Full Ownership (Freehold): Foreigners can buy property with full ownership (freehold) in designated Freehold Zones, of which there are over 50 in Dubai.
High Rental Yields: The UAE real estate market shows stable growth, providing high potential rental income.
Transparency and Security: Transactions are controlled by the Dubai Land Department (DLD), which guarantees legal clarity and investment security.

2. Step 1: Determining Budget and Financing

The first step is clear financial planning.

Associated Costs (Mandatory Fees):

To the apartment price, you need to add 4-8% for associated costs, including:

DLD Fee (Dubai Land Department): 4% of the property value. This is the main title transfer tax.
Agency Commission (Realtor): About 2% of the transaction value. When buying a new-build (off-plan), the developer often covers the commission.
Administrative Fees: Fixed fees for registration, issuing the NOC (Non-Objection Certificate) from the developer/DLD (from $500 to $2000).

Mortgage for Non-Residents:

Foreigners can apply for a mortgage in UAE banks, but the conditions are stricter than for residents:

Condition	UAE Residents	Non-UAE Residents
Minimum Down Payment	From 20%	From 25% to 50%
Maximum Term	Up to 25 years	Up to 15-20 years
Interest Rate	From 2.5%	From 3.5% to 7%

Requirements: Age 21-65, confirmed income, sufficient funds for the down payment.

3. Step 2: Choosing Property Type and Area

Determine whether you are buying the apartment for residence (need infrastructure, schools, work) or for investment (potential capital growth, high rental demand).

Types of Purchase:

Secondary Market (Ready Property): Apartments ready for occupancy. Fast closing, but a large sum is required immediately.
Primary Market (Off-Plan): Housing under construction.
- Advantages: Lower price, flexible payment plans (developer installment), higher potential value growth until completion.
- Risks: Construction delays.
- Payment Scheme: Usually 10-20% down payment, the rest according to the construction schedule.

Popular Freehold Areas:

For Living and Prestige: Dubai Marina, Palm Jumeirah, Downtown Dubai.
For Investment and Yield: Jumeirah Village Circle (JVC), Business Bay, Dubai Silicon Oasis.

4. Step 3: Purchase Procedure (Step-by-Step)

The deal closing can take from a few days to a month, depending on the property type.

1. Selection and Reservation (Booking)

Choosing the apartment and agreeing on the price.
Payment of a deposit (usually 5-20% of the value) and signing the Memorandum of Understanding (MOU).
For new-builds (Off-Plan): signing the Sale and Purchase Agreement (SPA) with the developer and making the first payment according to the plan.

2. Obtaining the NOC Certificate

The seller obtains a No Objection Certificate (NOC) from the developer or management company, confirming the absence of debts.

3. Transfer of Title

The buyer, seller (or their representatives), and realtor meet at the Dubai Land Department (DLD) or the developer's office (for off-plan).
Payment of DLD fees (4%) and the remaining amount.
DLD registers the transaction and issues a New Title Deed in the buyer's name.
Required Document: Only a passport (for foreigners).

4. Applying for a Residence Visa

After registering the title deed, the buyer applies for an Investor Residence Visa through the DLD and immigration services.

5. Important Tips for First-Time Buyers

Work with a Licensed Realtor: A local expert will help you navigate the freehold zones, verify the developer, and optimize tax fees.

Legal Support: Although the DLD process is transparent, it is recommended to engage a lawyer, especially when buying on the secondary market or arranging a mortgage.

Developer Vetting: Always check the developer's reputation, history of their projects, and DLD ratings.

Conclusion: Buying your first apartment in the UAE is a secure and profitable way to invest and obtain a residency permit. Careful budget planning and understanding the step-by-step procedure guarantee the success of your transaction