All matters of legalization of sale and purchase of lands have been entrusted to the Dubai Land Department. This has served to regulate the registration process and protect property from misappropriation. It has also facilitated transactions between landowners and buyers, and their heirs, when applicable.
The Dubai Land Department reports on the total number and value of lands sold in a given timeframe.
The Dubai Land Department
Web: http://www.dubailand.gov.ae
Phone: 0097142222253
Fax: 0097142222251
Email: info@dubailand.gov.ae
The right to own Land in the Emirate shall be restricted to citizens of the United Arab Emirates, citizens of the Cooperation Council for the Arab States of the Gulf, the companies totally owned by any of the foregoing, and public joint stock companies. Foreign Persons may, subject to the approval of the Ruler, be granted in certain areas the following rights:
(a) The right to acquire absolute ownership of Land without restrictions as to time.
(b) The right to acquire usufruct or leasehold of Land for a period not exceeding 99 years.
The UAE recently passed laws extending Freehold ownership to foreigners.
The United Arab Emirates currently doesn't have a federal law defining freehold. Once the freehold property law is in effect, it will means that the property purchased by a foreigner will be put his/her name for life, which allows him/her to register the property in the Lands Department. The owner will then have full rights to the property and has the right to sell, lease or rent their property at their own discretion. Property owners and their immediate family, will obtain renewable residence visas for life.
Title & Contracts in United Arab Emirates
All transactions that create, transfer, change or cancel rights over Land shall be recorded in the Land Register and final judgments confirming those transactions shall also be likewise registered. No transaction shall have any effect unless registered in the Land Register.
All procedures related to sale, purchase, and mortgage are conducted electronically by the Dubai Land Department.
Properties in the designated developments are usually bought off-plan, or before completion. Buyers are to choose what to buy, and pay an initial deposit of around 10%-15% of the original price. A holding deposit may also be asked by the developer, taking the property off the market, giving the buyer time to finalize his finances, documents, and such. This usually secures the property up to one month. The holding deposit is non-refundable in the event that the buyer decides not to continue with the sale.
Property Taxes:
Rental Income:
There are no income or property-related taxes in Dubai, although there are fees for visa renewals by resident non-Citizens (see below).
There is a 5% residential tax assessed on rental value.
Capital Gains Tax:
There is no capital gains taxation in Dubai.
Different developers may offer different payment plans. Common practice is the buyer provides staggered payments to the developer before completion. Once the development is completed, and units can be handed over to the buyers, full payment of the purchase price has to be fulfilled.
Approximately 25% of residential property is bought on mortgage.
Administaror