Guidelines For Property in Dubai

When buying a property,you should always undertake due diligence so you completely understand the whole process.  It is advisable that you seek advice from local experts such as a solicitor,real estate agent etc.  Do not assume that any transaction you enter into will work the same way as one you entered into in your original country of residence.  Read everything very carefully and never sign anything unless you are certain that you completely understand it.

There are a number of rules and regulations surrounding the purchase of property by foreign residents.    Property can be purchased by a foreign individual or company so again take advice as owning property via a company may be more tax efficient.  Whilst there are no taxes on property in Dubai,your original country of residence may impose taxes such as inheritance tax on worldwide assets in the event of death.

Recent changes in the law have allowed foreign residents to own the freehold of certain properties in certain areas of Dubai.  This is the most attractive form of property ownership as it allows you complete freedom and control over the property.  But it does not yet apply to all property transactions.

Other forms of ownership are available such as 99 year leasehold - you own the property for a period of 99 years after which it returns to the freeholder. 

Despite the fact that you do not own the freehold to the property,you may be responsible for maintenance and upkeep so be sure to know the approximate costs of these expenses.  The lease may also have conditions on what you are allowed to do with the property with regards to decor,extensions and renovations.

The Sharia laws in the Emirates may result in the property not passing to your wife should you predecease her.  There are ways around this,but given it is a very complex area,seek the advice of a local expert.

When purchasing a property,you need to ensure you are buying from the actual owner.  It is the title certificate which proves ownership in Dubai - no other contract or purchase agreement is sufficient proof.  It goes without saying that the title certificate should be checked against the records of the Land Department to ensure you are not looking at a forged document. You are allowed to inspect the property register provided you can prove you have a genuine reason for doing so.  In addition you can request a certified copy of the property register relevant to your potential purchase.

Mortgages are becoming more freely available to foreign residents.  The usual term of the loan is 15 years and the interest rate tends to be linked to the US rates.  You should shop around before making a commitment on a mortgage as terms and rates do vary.  Again seek advice from a reputable advisor. It is worthwhile speaking to various members of the expat community to seek a personal recommendation for someone who assisted them in their property transaction.

A property purchase in any country is a huge financial commitment.  Take time to do it properly so you can enjoy your new home.