Foreigners Buying Property in Dubai: Legal Steps, Rules, & Requirements

As per the Residential Market Sales Price Index reported by REIDIN, the Dubai residential market continued rising by 15.60% year-on-year, with apartment prices registering a 15.22% annual increase, and villa prices rising by 17.81%.

Are you a foreigner or an expatriate looking to buy property in Dubai, but don't know how to follow Dubai property laws? Buying a house in Dubai for expats and foreigners is a great way to diversify their investment portfolio, set up passive rental income, apply for tax benefits, and even qualify for UAE residence visas.

As Dubai has specific rules and procedures for foreigners buying property in Dubai, selecting the right property and getting expert legal help at the earliest is essential for complying with Dubai real estate laws and regulations.

Can Foreigners Buy Property in Dubai?

Yes, expatriate residents and non-resident foreign investors can buy property in Dubai. Before 2002, Dubai real estate laws and regulations didn't allow foreigners to freely own land or houses in Dubai, and there were only limited leasehold properties.

Now, under Article 3 of Regulation No. 3 of 2006, foreign nationals and non-residents can freely buy property in designated areas allotted by the Dubai government. If you want to know how to buy a home in Dubai, understanding freehold and leasehold property is very important.

Property Types for Foreign Investors in Dubai

What is Freehold Property in Dubai?

In freehold areas, foreigners are allowed to own 100% of the property (and the land) and can freely own, buy, sell, rent out, and modify their property. Although the initial cost of buying a freehold property in Dubai by a foreigner is higher, it offers greater legal protection and a higher return on investment.

Top Freehold Areas Most Preferred by Foreigners and Expats:

• Palm Jumeirah - Luxury waterfront living with exclusive amenities
• Downtown Dubai - Urban lifestyle near Burj Khalifa and Dubai Mall
• Arabian Ranches - Family-friendly gated community with golf course
• Dubai Marina - High-rise apartment living with marina views
• Dubai Hills Estate - Premium golf course community
• Al Jaddaf - Riverside development with cultural attractions
• DAMAC Hills - Master-planned community with luxury amenities

There are specific freehold areas for residential and commercial areas, and even within them, there are designated areas for buying apartments and villas. Consult an expert real estate attorney before finalizing a property to avoid future legal issues.

What is Leasehold Property in Dubai?

Leasehold properties have limited ownership rights, typically leased by foreigners or expats for 99 years. After the lease expires, the property returns to the owner. In leasehold properties, the cost of acquisition and service/maintenance is lower, but the right to modification and renovation is not present. Generally, leasehold property owners cannot pass the property to their heirs.

Eligibility Requirements for Foreign Property Buyers in Dubai

There is no age limit for owning property in Dubai. However, under the UAE Civil Code, you need to be at least 21 years old to own and manage property independently.

If you are an expat, you must have a valid and unexpired passport, along with a residence visa to buy a property in Dubai. Investor-foreigners not living in Dubai only need their passport. There is no need for a local sponsor.

Additionally, you can only purchase property in the leasehold or freehold areas designated by the Dubai government or the Dubai Land Department (DLD).

Unsure whether you qualify to buy property in Dubai? Kayrouz & Associates' real estate law team advises on all aspects of real estate transactions, such as acquisition, development, leasing, and finance, with precision and commercial awareness.

Required Documents for Buying Property in Dubai as a Foreigner

Dubai offers the option to buy or lease various residential, commercial, industrial, and mixed-use properties, with high-end luxury apartments, waterfront villas, office spaces, duplexes, townhouses, and hotel apartments listed for sale.

You can consult with a licensed broker to help you choose your dream property. After that's done, we can start your legal process. Here are the documents used when buying a property in Dubai:

• Passport and Visa: Valid passport, Emirates ID, and visa copies required
• Sale and Purchase Agreement (SPA): Also known as Memorandum of Understanding (MoU) or Form F, includes all sale terms
• Proof of Payment: Bank receipts and cheques as payment verification
• Bank Mortgage Documents: Pre-approval required before signing SPA if financing
• No Objection Certificate (NOC): Required for secondary market property purchases
• Title Deed: Official proof of ownership issued by DLD with registration documents
• Tenancy Contracts: Required for rental property agreements with landlord

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After you have selected a property, you can enter into an SPA, obtain an NOC, and register your ownership to complete the purchase process.

Step-by-Step Process: How to Buy Property in Dubai as a Foreigner

Buying a property in Dubai as a foreigner can involve multiple stages of forms and due diligence. Here's a comprehensive step-by-step guide to help you better understand the process:

Step 1: Select a Property

Shortlist properties that fit your needs and budget. If you want to live in a property temporarily, choose a leasehold property. Otherwise, select a freehold property in Dubai. You can also choose between ready properties and off-plan (under construction) projects. While off-plan projects are cheaper, they don't offer immediate occupancy.

Step 2: Due Diligence

Track the property's transfer history, including details of any mortgages or encumbrances, escrow payment compliance, and any property ownership and title disputes.

Step 3: Memorandum of Understanding (MoU)

Once you have your mortgage documents in place and have the necessary funds, you can enter into an MoU with the seller. You may have to pay a 10-20% signing deposit.

Step 4: Title Transfer

After the transaction is complete, the final step is to visit the DLD to complete the property ownership transfer process and apply for a new title deed and certificate.

Complete Cost Breakdown: Buying Property in Dubai as a Foreigner

Even though Dubai doesn't impose any personal income tax, certain taxes and fees may be levied when buying a property as a foreigner or expat in Dubai.

Mandatory Fees and Costs:

• Dubai Land Department Fees: 4% of property value (typically split equally between buyer and seller)
• Registration Fee: AED 2,000 for properties under AED 500,000; AED 4,000 for properties above AED 500,000 (plus 5% VAT)
• Title Deed Issuance Fee: AED 250 flat fee
• Municipality/Housing Fee: 5% of average rental value annually (included in DEWA utility bills)
• Service Charge: 5% of annual rent for common area maintenance
• Value Added Tax (VAT): Additional 5% VAT for commercial properties
• Security Deposit: 5-10% of annual rent (rental properties only)

Special Benefits for First-Time Buyers:

Want to know if you are eligible for any benefits or rebates? In July 2025, the DLD started the First-Time Home Buyer Programme, which offers exclusive benefits such as:

• Preferential mortgage rates
• Waived registration fee installments
• Exclusive discounts with select developers

Contact Kayrouz & Associates to get expert legal assistance, stay ahead of the curve, and stay updated about any new legal developments in the Dubai real estate market.

Why Legal Support is Essential for Foreign Property Buyers in Dubai

Foreign property transactions in Dubai involve layers of RERA regulations, DLD registration, escrow rules, and contract compliance. For foreign investors and expats, even a small mistake in the due diligence or documentation process can delay transfers or create unwanted legal risk.

At Kayrouz & Associates, our Real Estate and Construction Law teams bridge legal insights with market knowledge to secure every stage of your Dubai property purchase. From construction-linked sales and off-plan purchases to real estate transactions and conveyancing, we ensure compliance with DLD and UAE real estate laws and safeguard your investment from day one.

Ready to invest in Dubai real estate? Consult our real estate law team to complete your Dubai property purchase confidently and ensure full legal compliance throughout the process.