Buying property in Dubai and Abu Dhabi: process, costs, mortgages, off-plan, renting and tax

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Buying property in Dubai and Abu Dhabi: process and costs

The rules a foreign buyer should know, limited to points we could confirm. Fees and regulations change, so confirm the current position with the official sources or a professional (property lawyer, bank, tax adviser) before signing.

Last checked: 2026-10-11

1. Where foreigners can buy · 2. Buying a completed (ready) home in Dubai · 3. Purchase costs · 4. Mortgages · 5. Off-plan purchases · 6. Renting out (Dubai) · 7. Tax · 8. Residence through property (Golden Visa) · 9. Checklist before buying

1. Where foreigners can buy

Dubai: foreigners can buy freehold in designated freehold areas, which include most major residential districts such as Dubai Marina, Downtown, JVC and Business Bay.
Abu Dhabi: since Law No. 13 of 2019, foreigners can buy freehold in designated Investment Zones such as Al Reem, Yas and Saadiyat islands; elsewhere ownership is limited to UAE and GCC nationals.
Transactions are registered with the Dubai Land Department (DLD) in Dubai and the Abu Dhabi Real Estate Centre (ADREC, via DARI) in Abu Dhabi.

2. Buying a completed (ready) home in Dubai

Agree the price and sign a memorandum of understanding (commonly RERA's standard Form F), usually with a deposit of around 10%.
The seller obtains a no-objection certificate (NOC) from the developer, which also confirms there are no unpaid service charges.
With a mortgage, the bank values the home and approves the loan; any seller's mortgage is cleared in parallel.
Payment and transfer happen together at a DLD Trustee Office, which issues the new title deed.
A cash purchase typically takes a few weeks; with a mortgage, longer.

3. Purchase costs

Cost	Dubai	Abu Dhabi
Registration (transfer) fee	4% of the price (in practice usually paid by the buyer)	2% of the price (split set by contract; often the buyer)
Fixed registration charges	Title deed and Trustee Office fees, roughly AED 4,000–6,000 in total depending on type and price (check DLD)	DARI fees (check ADREC)
Agent commission	Customarily 2% plus 5% VAT	Customarily about 2% plus VAT
Mortgage costs	Mortgage registration 0.25% of the loan plus AED 290, bank arrangement fee (often up to about 1% of the loan), valuation fee	Mortgage registration and bank fees (check ADREC / bank)
Off-plan	Oqood (interim registration) 4% of the price at contract	2% registration at contract

As a rule of thumb, budget around 7% on top of the price for a completed Dubai home bought in cash, and 1–2% more with a mortgage. The buy-to-let calculator includes these costs.

4. Mortgages

Under the Central Bank's rules (as amended in 2019), resident expatriates can borrow up to 80% for a first home up to AED 5 million and 70% above that; up to 60% for second and investment homes; and up to 50% off-plan.
The maximum term is 25 years; for expatriates the loan generally has to be repaid by about age 65.
These are caps; banks set their own terms. Non-residents are usually limited to around 50–60%, and some banks do not lend to them.
Most loans float at 3-month EIBOR plus a bank margin, sometimes after a fixed period. EIBOR follows US dollar rates because the dirham is pegged to the dollar.

5. Off-plan purchases

Buyers' payments go into a project escrow account, not to the developer directly (Dubai Law No. 8 of 2007); developers must open the account with DLD before selling off-plan.
Payment plans typically take 10–20% at signing, instalments tied to construction and the balance at handover; some continue after handover.
Completion dates often slip: our count of the DLD registry found over 40,000 unfinished units past their planned date (construction progress is on each project page).
Reselling before completion (assignment) usually requires a minimum share paid and a developer fee; check the contract.
Off-plan prices embed the payment plan, so they are not directly comparable with prices of completed homes.

6. Renting out (Dubai)

Tenancy contracts are registered in Ejari (the DLD system); our rent figures are built from these registrations.
Renewal increases are capped by the RERA rental index (Decree No. 43 of 2013): no increase if the rent is within 10% of the index average; up to 5% if 11–20% below; 10% if 21–30%; 15% if 31–40%; 20% if more than 40% below.
Changes must be notified in writing at least 90 days before the contract ends.
Service charges are set per building from RERA-approved rates (published by DLD); they are the owner's cost and weigh heavily on yields.
Short-term (holiday home) letting needs a separate permit from Dubai's Department of Economy and Tourism (DET, formerly DTCM).

7. Tax

The UAE has no personal income tax, no annual property tax and no tax on individuals' capital gains.
Corporate tax (since 2023) generally does not apply to rent an individual earns from property without needing a business licence (Cabinet Decision No. 49 of 2023); holding through a company or as a business is treated differently.
VAT: residential sales and leases are generally exempt, and the first supply of a new home is zero-rated; services such as agency fees carry 5% VAT.
Residents of other countries may owe tax at home on UAE rent and gains; take local advice.

8. Residence through property (Golden Visa)

A property valued at AED 2 million or more can qualify for a 10-year Golden Visa; ready, off-plan and mortgaged homes can qualify under conditions (a bank NOC for mortgaged homes).
Whether mortgaged and off-plan homes are judged on value or on the amount paid has been reported inconsistently after the 2026 changes; confirm with DLD or ICP before applying.
Since April 2026, the 2-year property investor visa has no minimum value for a sole owner of a completed home with a registered title deed (previously AED 750,000; off-plan does not qualify and joint owners face conditions).

9. Checklist before buying

Check the asking price against registered prices in the same project and area with the price check.
Check rent and cash flow after service charges and debt service with the rent check and the calculator.
Look at the area's price trend and near-completion supply on the rankings and area pages (heavy supply weighs on rents and prices).
Use a RERA-registered agent (Dubai) and pay deposits only through the proper channels, never to a personal account.
For off-plan, check the developer's handover record and that the project has an escrow account.

Sources

General information only, not legal, tax or investment advice. Rules change.

Sources: Dubai Land Department (DLD Open Data; Dubai sales before 2026 via the CC BY 4.0 republication by Dubai Real Estate Data, dubairealestatedata.com), Ejari rent contracts, Abu Dhabi Real Estate Centre (ADREC), FRED, New York Fed, US Treasury. Residential (apartment and villa) sales only; cells with fewer than 5 sales are hidden. Information only, not investment advice.