Buying Property in Dubai as an Expat: The Money Side
What buying a Dubai home costs, how much a bank can lend, how off-plan payments are protected, and the tax, visa and succession points to settle.
Last reviewed 27 October 2026 · Updated · 9 min read
In short
Expatriates can buy freehold property in Dubai's designated areas, and non-residents can register a purchase with a passport. Budget for the Dubai Land Department (DLD) registration fee of 4% of the price, which in practice the buyer usually pays in full, plus trustee and title deed fees and, with a mortgage, 0.25% of the loan to register it. Central Bank rules cap an expatriate's first-home mortgage at 80% of the value below AED 5 million and 70% above it, a second or investment property at 60%, and any off-plan purchase at 50%. Rent from property you hold personally as an investment is not subject to Corporate Tax, and property costing AED 2 million or more can support a 10-year Golden Visa.
What does it cost to buy a property in Dubai?
Mainly the DLD registration fee, plus smaller fixed fees. Dubai's fee schedule sets the fee for registering a sale at 4% of the price. In practice the buyer usually pays the full 4%, although the fee rules split it equally between seller and buyer unless they agree otherwise, so the sale contract decides. Sales and mortgages are registered through the DLD's Real Estate Registration Trustee centres, which charge a service fee on top. The DLD's published costs, as of October 2026, are:
| Amount | Notes | |
|---|---|---|
| DLD registration fee | 4% of the sale price | In practice the buyer usually pays the full 4%; the fee rules split it equally unless agreed otherwise, and the DLD's pages show 2% each, for completed and off-plan sales |
| Title deed | AED 250 | Plus an AED 10 knowledge fee and an AED 10 innovation fee |
| Trustee service fee on a sale | AED 4,000 plus VAT | AED 2,000 plus VAT where the price is below AED 500,000 |
| Mortgage registration | 0.25% of the loan | Plus a trustee fee of AED 4,000 plus VAT, or AED 5,000 plus VAT for an off-plan (Oqood) mortgage |
| Agency commission | Varies | The DLD says it is whatever the parties agree, or the prevailing custom if the agreement is silent |
Lenders charge their own fees. The Central Bank requires them to be transparent about fees, charges and interest rates, to give borrowers the total cost of the loan over its life, and to have the property independently valued before committing to lend.
How much can an expat borrow?
Up to 80% of the value for a first home under AED 5 million. The Central Bank's mortgage regulations, in the consolidated version dated 8 April 2020, set these maximum loan-to-value limits:
- Expatriate, first home valued under AED 5 million: 80%.
- Expatriate, first home valued over AED 5 million: 70%.
- Expatriate, second or later home, or investment property: 60%, whatever the value.
- UAE national: 85% for a first home up to AED 5 million, 75% above that, and 65% for other property.
- Any buyer, off-plan property: 50%.
Each borrower can claim only one property as a first home. Other limits apply too: total debt repayments are capped at 50% of gross salary and regular income, the bank must stress test the loan at 2 to 4 percentage points above the current rate, an expatriate can borrow up to seven times annual income, and the longest term is 25 years. For an investment property, at least two months' rent is deducted when assessing affordability, and the deposit should come from your own resources, not from a personal loan or credit card. These are maximums, and a bank may set stricter limits.
Can non-residents buy and borrow?
Yes, they can buy: the DLD accepts a valid passport from non-resident foreigners registering a sale, in place of an Emirates ID. On borrowing, the Central Bank's regulations set limits for UAE nationals and for expatriates but do not set separate limits for non-residents, and they allow each bank to be more conservative, so terms can vary between lenders.
If you cannot attend in person, someone can act for you under a power of attorney. The DLD says a power of attorney for a purchase is valid for five years from notarisation, and one for a sale or mortgage for two years.
How do off-plan instalments and escrow work?
Your instalments go into the project's escrow account, not to the developer's own account. Under Dubai's escrow law, every developer selling off-plan must use one, all amounts received from buyers are deposited in it, and the account is opened in the project's name and used only to develop the project. Money is released mainly to contractors and consultants after the account trustee's engineer confirms each construction stage, the funds cannot be held for the developer's creditors, and 5% is kept back for one year after completion to cover defects.
Because instalments follow construction, the DLD says that when a developer asks for a payment, you can ask for the current completion percentage, confirmed by a letter from the DLD-approved project consultant, and need not pay until the agreed stage is reached. You can also track a project's progress on the DLD's website or app. The developer registers your contract in the DLD's provisional register through its Oqood system, within 90 days of signing.
With a mortgage, the bank must use your own share of the price before it releases any loan money to the developer. If a project is cancelled, the DLD's project liquidation department asks the developer to return buyers' payments within 60 days of the cancellation decision.
What does it cost to own a property?
Mainly service charges, plus utilities and the housing fee. Owners in a building or community with shared areas pay annual service charges approved by the Real Estate Regulatory Agency (RERA) to manage, operate, maintain and repair the common parts, including a reserve for major repairs. Each owner's share depends on the area on the title deed, management companies may not claim charges until RERA has approved them, and the DLD's service charge index, on its website and the Dubai REST app, shows the approved rates for each project.
Dubai Municipality's housing fee is 5% of the annual rent for tenants, added to their monthly electricity and water bills. Dubai Municipality also lets residents ask for the fee on owned units to be amended based on rental value, but the official sources we checked do not explain how the fee is set for an owner who lives in the property.
How is rental income taxed?
Not at all, if you hold the property personally as an investment. The UAE does not levy income tax on individuals, and the Federal Tax Authority (FTA) says an individual's income from selling, leasing or renting UAE property, without a licence and where none is required, is outside Corporate Tax whatever the amount, and registering a tenancy through Ejari does not count as a licence.
There are two exceptions. Holiday home lets under a permit from Dubai's Department of Economy and Tourism count as a licensed business, which is subject to Corporate Tax once an individual's business turnover exceeds AED 1 million in a calendar year. Property held through a company is taxed in the company, as our guide to owning UAE property through a company explains.
VAT depends on the type of property. Residential rent is generally exempt where the lease is longer than six months or the tenant holds an Emirates ID, and an owner with only exempt supplies need not register. Commercial property, such as offices, shops and warehouses, is taxed at 5%, and its owner must register once supplies exceed AED 375,000 over 12 months. Our guide to tax for individuals covers both taxes in more detail.
Can buying property get you a Golden Visa?
Yes, with property costing at least AED 2 million. The DLD's Golden Visa service grants a 10-year renewable residence permit to an investor whose property, or properties, cost AED 2 million or more and are wholly owned in their own name. A mortgaged property can count if the bank confirms at least AED 2 million has been paid, off-plan property worth AED 2 million or more from approved developers can qualify, and GDRFA Dubai requires a lien on the property for as long as the visa lasts. The applicant must be in the UAE to apply.
As of October 2026, the DLD lists fees of AED 9,884.75 for the investor's 10-year permit and AED 5,774.50 for a 10-year family residence permit, with further charges such as AED 318.75 to open a family sponsorship file. Our Golden Visa guide covers every route.
What should you sort out for succession?
A will that covers the property, and a plan for the transfer costs. Non-Muslims aged 18 or over can register a DIFC Courts Property Will covering up to five UAE properties, including off-plan property once the Oqood certificate is available, or a Full Will covering their movable and immovable property. Our wills and inheritance guide explains what happens without one.
Transfers on death have a cost: the DIFC Courts say DLD transfer fees of 0.125% to 4% of the property's value apply, depending on how closely the beneficiary was related to the deceased. Property can also be held through a company or under a foundation, and our guides to owning property through a company and DIFC and ADGM foundations explain what that changes and what it does not.
What should you check before you buy?
A short checklist for the money side:
- Set your budget, including the 4% DLD fee, trustee and title deed fees, mortgage registration and agency commission.
- Check the loan-to-value cap that applies to you with your bank, and have your deposit ready from your own funds.
- Confirm the property is in a freehold area and, for a resale, that the developer will issue its no-objection certificate; for off-plan, check the project's progress on the DLD's website and that payments go to its escrow account.
- Look up the RERA-approved service charges in the DLD's service charge index.
- Decide whose name the property will be in, personally, jointly or through a company, before you sign, because any later change of ownership is a new DLD registration.
- If you want a Golden Visa, confirm the value, ownership and mortgage conditions before you buy.
- Register or update your will so that it covers the property.
Frequently asked questions
Who pays the 4% DLD fee, the buyer or the seller?
In practice the buyer usually pays the full 4%, and sellers and agents will normally expect that. Dubai's fee rules split the fee equally between seller and buyer unless they agree otherwise, so it can be negotiated, and the sale contract decides who pays. Check what yours says before you sign.
Can I get a mortgage on an off-plan property?
Yes, but the Central Bank caps the loan at 50% of the value for any off-plan purchase, whoever the buyer is. The bank must use your own contribution to pay the developer before it releases any loan money.
Do I pay tax on rent from my Dubai apartment?
Not Corporate Tax, if you let it as a personal investment without a licence and none is required. Holiday home lets under a Department of Economy and Tourism permit are treated as a business, and residential rent is generally exempt from VAT where the lease is longer than six months or the tenant holds an Emirates ID.
Does buying property give me UAE residence?
Property costing at least AED 2 million can support a 10-year Golden Visa through the DLD, including mortgaged property once AED 2 million has been paid. Our Golden Visa guide explains the conditions, and our retirement visa guide covers the separate option for retirees.
How Indigo Group can help
Indigo Group is not an estate agent and does not sell property. Our Wealth Management team can talk you through how a Dubai purchase is structured, including whose name it is held in, and how it fits your wider finances, tax position and succession plans. Our Corporate Services and Trust and Estate Planning teams can help where a company, foundation or will is involved, working alongside a registered tax agent where one is needed. Indigo Group's regulated entity, Indigo Financial Analysis and Consultancy LLC, is licensed by the UAE Capital Market Authority (CMA), licence no. 706042.
Read more about our independent wealth management in Dubai and our estate and succession planning in Dubai.
To talk this through, book a consultation or message us on WhatsApp.
Related guides
See all our guides on property structures, costs and tax in the UAE.
Sources
- Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai, Dubai Legislation Portal
- Executive Council Resolution No. (30) of 2013 Approving Fees of the Land Department, Dubai Legislation Portal
- Frequently Asked Questions, Dubai Land Department
- Property Sale Registration, Dubai Land Department
- Request to register the initial sale, Dubai Land Department
- Mortgage registration application, Dubai Land Department
- Service Charge Index, Dubai Land Department
- Golden Visa application: Investor, Dubai Land Department
- Issuing a golden residence permit (investors), GDRFA Dubai
- UAE Cabinet approves Executive Regulations of Federal Decree-Law on Entry and Residence of Foreigners, UAE Ministry of Foreign Affairs
- Regulations Regarding Mortgage Loans, Circular No. 31/2013 (consolidated version as of 8 April 2020), Central Bank of the UAE
- Leasing a property in the UAE, The Official Platform of the UAE Government (u.ae)
- Taxation, The Official Platform of the UAE Government (u.ae)
- Dubai Municipality Services, Dubai Municipality
- Real Estate Investment, Corporate Tax Guide CTGREI1 (October 2024), Federal Tax Authority
- Will VAT be charged on the property I am renting? (FAQ), Federal Tax Authority
- Does the owner of real estate have to register for VAT? (FAQ), Federal Tax Authority
- What is a commercial building for VAT purposes? (FAQ), Federal Tax Authority
- How will real estate be treated? (FAQ), Federal Tax Authority
- Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments (FTA publication, September 2026), Federal Tax Authority
- Wills FAQ, DIFC Courts
- Probate costs, DIFC Courts
Last reviewed 27 October 2026. This article is for general information only and does not constitute financial, legal or tax advice. Rules change, so please speak to a qualified adviser about your circumstances.
