How Expats Can Buy Property and Get a Mortgage in Dubai
Expats interested in buying property in Dubai have the option to obtain a mortgage in the city and can buy properties in the freehold areas in Dubai which includes Dubai Marina, Downtown Dubai, and Palm Jumeirah.
Are you an expat in Dubai looking to buy a property? Are you looking to invest in a property in Dubai? In this guide, we will go through how expats can buy properties in Dubai, the legal requirements for the process, and insurance plans for property owners in Dubai.
Buying Property in Dubai as an Expat
It is possible for an expat to buy property in Dubai but only in freehold areas such as Dubai Marina and Downtown Dubai. Fortunately, these are some of the best places to live in Dubai! Expats who have resided in the country for over three years can also take out mortgages to buy properties.
Expats should also be aware of the legal requirements that govern foreign property ownership in the city. Aside from only being able to buy in the freehold areas, expats looking to purchase property must fulfill certain legal requirements.
Legal Requirements for Expats to Buy Property in Dubai
Whilst expats can buy property in Dubai, as previously mentioned, there are certain legal requirements that they must fulfill to be eligible to buy a property in the Emirate. These requirements include:
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- A valid residency visa
- Minimum stay period of up to three years
Before proceeding with a property purchase, it’s crucial to understand the benefits and types of properties that expats can own. Whether you’re interested in luxury apartments, villas, or commercial spaces, make sure they are available for purchase by non-UAE nationals.
Be sure to familiarize yourself with the legal steps involved in buying property in Dubai. This includes conducting thorough due diligence, obtaining a no-objection certificate from the developer, signing a sales and purchase agreement, and registering the property with the Dubai Land Department.
Getting a Mortgage as an Expat in Dubai
Expats who have resided in Dubai for over three years have the option of applying for a “mortgage in Dubai for non-residents“, which allows overseas investors to finance their property purchase in the city.
Mortgage in Dubai for non-residents key legal requirements:
- Valid residency visa for the entire mortgage term. Short-term visas do not qualify
- Valid documents. This includes a passport, visa, emirate ID, earning proof, and property purchase contract.
- A monthly salary is required to apply for a mortgage. The actual minimum salary required varies from bank to bank.
- Certain banks may also have an age restriction for applicants applying for a non-resident mortgage in Dubai.
By meeting the eligibility criteria and providing the necessary documents, expats can access benefits such as high loan amounts and increased flexibility. However, it’s important to note that non-resident foreign investors have limited options compared to UAE citizens and expats.
Tips for Expats Buying Property in Dubai
If you are an expat considering buying property in Dubai, here are some important tips to keep in mind. First and foremost, it is crucial to work with a reputable real estate agent or mortgage broker who has extensive knowledge of the Dubai market.
Researching the market is key. Take the time to understand the different areas in Dubai and their potential for growth and return on investment. Consider factors such as proximity to amenities, transportation links, and future developments in the area.
Additionally, it is important to be aware of the additional costs associated with owning a property in Dubai. These can include service charges, maintenance fees, and property taxes. Factor these costs into your budget to ensure that you can afford the property and maintain it in the long run.
Lastly, familiarize yourself with the legal requirements for expats buying property in Dubai. Understand the designated freehold areas where foreign investors are allowed to purchase property. These areas include Dubai Marina, Downtown Dubai, and Palm Jumeirah.
Property Tax in Dubai
Dubai is a no-tax emirate, meaning there is no property tax. However, when buying a property in Dubai there is a property transfer fee of around 5% of the property’s annual rental value. Half of the fee is paid by the seller and the buyer pays the other half.
Frequently Asked Questions
Can expats buy property in Dubai?
It is possible for expats to buy property in Dubai. They have the option to obtain a mortgage in the city, allowing them to invest in the vibrant Dubai real estate market and secure their own piece of the city.
What tips should expats keep in mind when buying property in Dubai?
Expats buying property in Dubai should work with reputable real estate agents or mortgage brokers, research the market, understand the legal steps involved, consider the location and amenities of the property, and be aware of additional costs such as service charges, maintenance fees, and property taxes.
What are the legal requirements for expats buying property in Dubai?
Expats buying property in Dubai should be aware of the legal requirements that govern foreign property ownership in the city. Foreign investors can only buy property in designated freehold areas.
Can non-residents get a mortgage in Dubai?
Non-residents can get a mortgage in Dubai, this option is known as a “mortgage in Dubai for non-residents,” and it allows overseas investors to finance their property purchases in the city.
Conclusion
Buying a property in Dubai is a great way for expats to truly settle down in the emirate. Depending on the property’s value, it is also one of the methods expats can use to become a citizen in Dubai.
If you are buying a property in Dubai to settle in, the non-resident mortgage is available to you as long as you meet the key legal requirements.
If you are looking to buy a property in Dubai, then it is recommended that you secure a property and casualty insurance policy (P&C insurance). P&C insurance policies provide insurance protection for your property from natural disasters, theft, and other unforeseen incidents.
The casualty portion of P&C insurance protects you from liability in the case of accidents, injuries, and damages to other people and their belongings.
Securing the right plan for your property can be a complicated process. From comparing plans to weighing which benefits you need, the amount of research you will have to do can be astounding. This is where Pacific Prime can help you.
As a global insurance broker with over 20 years of experience in the industry, Pacific Prime’s team of experts can help you filter through countless plans from different insurers to help you find the best insurance plans for you.
Contact us today to get started!
Born and raised in the cultural melting pot that is Hong Kong, and having studied at an international school, Vista has developed a multicultural perspective that he uses in his writing and strives to connect to people of different backgrounds.
In his free time, Vista enjoys immersing himself in different worlds, from video games to light novels and movies. His hobbies help him expand his writing style by putting himself in the point-of-view of different people and characters.
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