Dubai Off-Plan Property FAQ
Ownership & Eligibility
Can foreigners buy property in Dubai?
Yes. 100% freehold ownership is available to all foreign nationals in Dubai’s designated freehold areas. No UAE residence visa, local sponsor or quota is required.
Do I need to be in Dubai to buy?
No. Reservation, SPA signing and Oqood registration can all be completed remotely from any country via e-signature or notarised Power of Attorney.
What is a freehold area?
Areas designated by Dubai government decree where foreign nationals can own 100% of the property on freehold title. Includes Downtown, Palm Jumeirah, Business Bay, Dubai Marina, JVC, JVT, Dubai Hills, Dubai Creek Harbour, Dubai Islands, Dubai South, and most new master-plans.
Payment & Finance
What is the minimum down payment?
Typically 10% at booking, then 10% within 60 days at SPA signing. Luxury branded residences may require 20-30% at booking.
What is a 60/40 payment plan?
60% paid during construction via milestone instalments, 40% at handover. One of the most common Dubai off-plan payment structures.
What is a 1% per month payment plan?
1% of the purchase price paid every month (not 1% interest). On a 1M AED unit = 10,000 AED per month. Popular with Danube and Samana developers.
Can I get a UAE mortgage as a non-resident?
Yes. HSBC UAE, Emirates NBD, Mashreq, ADCB lend to non-residents at 50-60% LTV, 4.49-5.99% rates, up to 25-year tenure.
What are the costs beyond the purchase price?
One-time: DLD 4% transfer fee + ~1,000 AED Oqood fee. Ongoing: annual service charges 12-20 AED/sqft, DEWA utilities, optional property management.
Taxes
Is there property tax in Dubai?
No. Dubai imposes 0% annual property tax, 0% rental income tax, 0% capital gains tax and 0% inheritance tax on real estate.
Do I owe tax in my home country?
Typically yes, if you’re a tax resident. Most countries tax worldwide income. Since Dubai is 0%, there’s no foreign tax credit to claim — the full amount is taxed once in your home jurisdiction.
Golden Visa
What is the Golden Visa property threshold?
AED 2,000,000 (approx USD 545,000, CAD 740,000, GBP 440,000, INR 4.6 crore). For off-plan, eligibility triggers at 50% paid-in to developer escrow.
Who is included in the Golden Visa?
Investor + spouse + children (any age, including adults) + parents + one domestic worker — the widest family inclusion among global residency-by-investment programmes.
Does the Golden Visa lead to citizenship?
No. The UAE does not offer naturalisation through property investment. The Golden Visa is a 10-year renewable residence, maintainable indefinitely as long as you own the qualifying property.
Risk & Protection
Is my off-plan deposit safe?
Yes. Dubai Law No. 8 of 2007 requires every developer payment to go into a RERA-regulated escrow account. If a project is cancelled, RERA refunds buyers directly.
What if the project is delayed?
Buyers can apply to RERA for termination with refund on materially-delayed projects. Developers often extend or restructure payment plans during unavoidable construction delays.
What if I change my mind after reserving?
You usually have a reservation period (14-30 days before SPA) to cancel with full or partial deposit refund. After SPA, RERA’s 2017 cancellation framework governs forfeiture — up to 40% of paid amount if cancellation is buyer-initiated.
Yield & ROI
What rental yield can I expect?
5-7% gross in premium areas (Palm, Downtown, Dubai Hills); 7-10% gross in investor-focused areas (JVC, Business Bay, Dubai South). Short-term rental yields often 9-14% on branded units.
Can I use my Dubai unit for Airbnb?
Yes. Short-term rental requires a Dubai Tourism DTCM holiday-home licence, available to all freehold owners including foreign nationals. Full-service STR operators handle management if you’re not in Dubai.
Process
How long does the full process take?
Reservation to Oqood registration: 2-4 weeks. Oqood to handover: 2-5 years depending on project. Handover to rental income: 1-4 weeks (fit-out + first tenant).
What documents do I need?
Passport (and residence card if applicable). Proof of source of funds for KYC. For mortgage: tax returns and bank statements.
Can I resell before handover?
Yes — Dubai has a deep off-plan assignment market. Most SPAs permit assignment after 30-40% of the price is paid.