Buying Property in Dubai as a Foreign Buyer

Where you can buy

Freehold areas: where foreigners can buy property in Dubai

Dubai Law No. 7 of 2006 allows non-UAE nationals to own property freehold, without time restriction, in areas designated by the Ruler. The designated areas are listed in Regulation No. 3 of 2006, and later resolutions have added more.

The UAE government portal puts it simply: in Dubai, foreign ownership is permitted in areas designated as freehold.

Palm Jumeirah is on that list, so the penthouse can be owned freehold by a buyer of any nationality.

Costs

What it costs to buy property in Dubai

These are the official DLD fees for registering a sale, as published on the DLD website:

• DLD registration fee: 4% of the sale value, shared 2% by the seller and 2% by the buyer unless they agree otherwise.
• Title deed issuance: AED 250.
• Real Estate Registration Trustee: AED 4,000 + VAT for sales of AED 500,000 or more (AED 2,000 + VAT below that).
• Mortgage registration, if you finance: 0.25% of the loan amount, plus AED 250 for the title deed, AED 10 and the AED 4,000 + VAT service fee.
• Agency commission: set by agreement between the parties; the DLD does not fix a rate.

For the penthouse, the trustee fee is the AED 4,000 + VAT band, and the 4% registration fee is shared as agreed in the sale.

Financing

Mortgages for international buyers

The Central Bank of the UAE caps the loan-to-value for expatriate buyers of completed homes: up to 80% on a first home of up to AED 5 million, up to 70% above AED 5 million, and up to 60% on a second or later property. Off-plan purchases are capped at 50%.

The published rules distinguish UAE nationals from expatriates; they do not set a separate limit for non-residents.

A completed, fully renovated penthouse falls under the rules for completed property.