Dubai is a top investment area where foreigners can own property, but only within specific laws made for them. The Dubai property law for foreigners offers a clear guide where to invest, what kind of ownership you can have, and what legal protections you can get.

Understanding these laws is important because even a small legal mistake could put your multimillion-dirham investment at risk. Knowing the benefits of freehold zones, paying attention to leasehold agreement details, and being aware of off-plan property regulations helps you avoid fraud, prevent disputes, and secure the highest possible return on investment.

Dubai Property Law For Foreigners

Dubai Freehold Property Law

Under Dubai’s Law No. 7 of 2006, Land Registration Law, foreign nationals can fully own properties, including the land, in specific freehold zones without any time limits.

Here’s what the law says:

  • AE and GCC citizens can own freehold properties.
  • Foreigners can also own properties in designated freehold zones with approval from the Ruler.

Leasehold Property Rules in Dubai

In Dubai, when you buy a leasehold property, you get the right to use and live in the property, but the land stays with the freeholder, like the government or a private owner.

Key Legal Rules in Dubai

  • Law No. 7 of 2006: Allows foreigners to get leasehold rights for up to 99 years in specific areas. You must register the lease with the Dubai Land Department (DLD) to make it legally valid.
  • Law No. 26 of 2007 and Law No. 33 of 2008: These laws set rules for landlord-tenant relationships, covering lease endings, maintenance, and evictions to protect leaseholders.
  • Ejari Registration: Short-term leases (under 10 years) must be registered in the Ejari system. Long-term leases (10–99 years) are registered in the DLD’s Real Estate Register.

Must Check: benefits of buying property in Dubai

Off-Plan Property Regulations for Foreigners

Foreign investors are protected by specific legal rules to keep their money and rights secure. Here’s a simple regulations:

  • Escrow Account Required (Law No. 8 of 2007): Every off-plan project must use a RERA-approved escrow account. Your payments go into this account, and developers can only access the money after completing verified construction stages. 
  • Oqood Registration (Law No. 13 of 2008): The Sales Purchase Agreement (SPA) must be registered in the Dubai Land Department’s Oqood Interim Register. This certificate proves you’re the legal buyer and protects against duplicate sales.
  • Pre-Sale Protections: Developers must deposit 20% of the project cost into escrow, provide a bank guarantee, or show construction progress, plus submit a 10% performance guarantee to ensure they deliver.
  • Developer Licensing: Only RERA-licensed developers can launch off-plan projects, ensuring trust and reliability.
  • Risk Managed: In 2023, RERA reported that the escrow system cut project cancellations by over 30%.

Taxes & Fees for Foreign Buyers

Here’s a simple breakdown of the main fees and costs you need to know when buying property in Dubai, based on current regulations and practices:

1. Property Transfer Fee 

  • You must pay a 4% fee on the property’s sale price to the Dubai Land Department (DLD) when transferring property.
  • Legally, this fee can be split equally 2% each between buyer and seller, but buyers usually cover the full 4%.

2. Property Registration Fee

  • Registration fees depend on the property price: AED 2,000 for properties below AED 500,000, or AED 4,000 for properties above AED 500,000, plus 5% VAT.
  • There’s also an admin fee of AED 250–580 for issuing the title deed.

3. Mortgage Registration Fee (Law No. 15/2008)

If you use a mortgage, you pay 0.25% of the loan amount plus AED 290 as a mortgage registration fee to the DLD.

4. Trustee Office Fee

Authorized Trustee Offices handle the property transfer process and charge a standard fee of AED 2,000-4,000, depending on the property.

5. Agent Commission & Conveyance Fees

  • RERA-registered brokers charge a 2% commission on the purchase price, plus 5% VAT.
  • Conveyancing services of legal paperwork may add AED 5,000-10,000 in extra legal fees.

6. NOC Fees 

You may need a No Objection Certificate (NOC) from the developer, costing AED 500–5,000, depending on the project or developer.

Rules for Residency Visa Through Property Investment

Here’s are some key points of how you can get a residency visa by investing in Dubai property, based on the legal rules:

  • Buy a completed residential property worth AED 750,000 or more in Dubai’s freehold zones to qualify for a 2-year renewable residency visa.
  • If using a mortgage, pay at least 50% as a down payment and submit a No Objection Certificate (NOC) from the bank.
  • Invest AED 2 million or more in real estate to get a 10-year renewable Golden Visa, with no need for a local sponsor.
  • You can combine multiple properties to reach the AED 2 million value.
  • The property must be residential, fully built, not off-plan or under construction, and located in Dubai’s freehold zones.
  • Off-plan properties don’t qualify for a visa until the Title Deed is issued.
  • You must be physically present in the UAE during the application process; you can’t apply through a representative.
  • Required documents, including Title Deed, passport, health insurance, police clearance certificate, and a mortgage NOC if applicable.
  • With an Investor Visa, you can sponsor your spouse, children, parents, and optionally domestic staff.
  • Golden Visa holders don’t need to stay in the UAE for a minimum period. Your visa stays valid even if you’re abroad for long periods, as long as you meet the renewal criteria.

Inheritance Laws

These are some inheritance rules you must need to know if you want to save your asset after death.

Default Rule (If No Will Exists)

In the UAE, if you don’t have a registered will, inheritance follows Sharia principles, even for non-Muslim expats. A will from your home country may not be enough; you need to take local steps to ensure your wishes are followed.

DIFC Wills for Non-Muslims

Dubai created the DIFC Wills & Probate Registry / Wills Service Centre for non-Muslims. You can register a will to control how your UAE assets, like property, are distributed after you pass away. A registered DIFC will make the process faster and follow your wishes.

Recent Legal Updates

Dubai has updated its wills and probate rules, including DIFC regulations and federal personal status laws, making it easier and clearer to enforce non-Muslim wills. Always check the latest laws to stay informed.

Dispute Resolution for Property in Dubai

Here’s a simple guide to resolving property-related disputes in Dubai:

DLD Complaint System & Amicable Settlement

If you have an issue with a developer or agent, file a complaint through the Dubai Land Department’s complaint portal or Real Estate Violation System. The DLD tries to settle disputes through negotiation first.

Rental Disputes Center (RDC)

For landlord-tenant or rent-related issues, the Rental Disputes Center (RDC) handles cases, mediations, quick orders, and enforcement for rental disputes.

Courts or Arbitration

If the DLD or RDC doesn’t resolve your issue, you can take the case to Dubai Courts or a mutually agreed arbitration forum. Try regulatory steps first, with courts as a last resort.

Practical Tips for Foreign Buyers

Here are some practical tips for foreign buyers:

  • Check Freehold Status: Confirm the property is in a designated freehold zone before buying.
  • Register with DLD: Ensure the sale is registered with the Dubai Land Department and verify your title deed.
  • Register a DIFC Will: If you’re non-Muslim and want your UAE assets distributed your way, register a will at the DIFC Wills Service Centre.
  • Hire a Lawyer: Get a local property lawyer, especially if you have a complex family structure or own multiple properties.

FAQ

Can a foreigner have 100% property ownership in Dubai?

Yes, foreigners can own 100% of a property in Dubai’s designated freehold zones, as allowed by Law No. 7 of 2006. 

Are foreigners allowed to buy property in Dubai?

Yes, after the 2002 freehold law foreigners are permitted to buy property in Dubai. They can choose between full ownership or long-term use options.

Can a Pakistani buy property in Dubai?

Yes, non-resident foreigners, including Pakistanis, are allowed to purchase properties in freehold zones.

Keeping Up to Date With Dubai Property Laws

The biggest strength of Dubai’s real estate market for foreign investors is its clear and transparent laws. However, staying informed about these laws is just as important. 

Rules and policies get updated from time to time, so understanding and following them keeps your investment secure and profitable. Knowing the legal framework, registration process, and the role of regulatory bodies helps you make smart decisions at every step.

Habico Properties doesn’t just offer properties to foreign buyers. We provide expert guidance on every legal step, market trends, and paperwork process.