How Foreigners Can Buy UAE Property: Full Guide 2025

REAL ESTATE3 weeks ago

The United Arab Emirates (UAE) is not just a tourist hotspot it’s also a booming real estate destination. With modern skyscrapers, luxurious villas, world-class infrastructure, and high rental returns, many foreigners dream of owning property here. But how easy is it really?

Good news: Foreigners can buy property in the UAE, and the process has become simpler over the years. Whether you want to live, invest, or simply secure a holiday home in Dubai, Abu Dhabi, or any other emirate, this guide will walk you through all you need to know.

Where Can Foreigners Buy Property in the UAE?

Foreign nationals are allowed to buy property only in certain areas known as freehold zones. These areas are specially designated by the government where non-UAE nationals can own, lease, or sell property without restrictions.

Dubai

Dubai is the most popular emirate for foreign property buyers. Some of the major freehold areas in Dubai include:

Downtown Dubai
Dubai Marina
Palm Jumeirah
Jumeirah Village Circle (JVC)
Business Bay
Dubai Hills Estate

Foreigners can either buy apartments, villas, townhouses, or even plots in these areas.

Abu Dhabi

In Abu Dhabi, foreigners can buy property in selected investment zones such as:

Al Reem Island
Al Raha Beach
Yas Island
Saadiyat Island
Masdar City

In 2019, the Abu Dhabi government changed the law to allow full freehold ownership in these areas for expats, which was previously limited to leasehold rights.

Other Emirates

Sharjah: Foreigners can buy property on a 100-year lease basis.
Ras Al Khaimah: Freehold ownership is available in certain projects.
Ajman and Fujairah: Have freehold and leasehold options for foreigners.

Types of Property Ownership for Foreigners

Foreigners can typically buy properties under the following ownership categories:

Freehold Ownership: Full ownership of the property and the land it sits on.
Leasehold Ownership: Long-term lease (usually up to 99 years) but no ownership of the land.
Usufruct Rights: Right to use and benefit from the property for a set period.

Dubai and Abu Dhabi offer full freehold rights, which are the most preferred by investors and residents.

Step-by-Step Guide to Buying Property as a Foreigner

1. Choose a Property

First, decide whether you’re buying for investment or personal use. Select the location, developer, and property type accordingly.

Work with a registered real estate agent to get access to the best options in freehold areas.

2. Check Developer Approvals

Ensure the property developer is registered with the Real Estate Regulatory Authority (RERA) in Dubai or Department of Municipalities and Transport (DMT) in Abu Dhabi.

3. Reserve the Property

Pay a small booking fee (usually 5-10% of the property price). This holds the property in your name until paperwork is finalized.

4. Sign the Sales Agreement

Once the developer or seller verifies your documents, you sign a Memorandum of Understanding (MoU). This outlines the payment plan, handover dates, and other legal terms.

5. Transfer Ownership

To finalize the deal, go to the land department of the emirate (e.g., Dubai Land Department – DLD) and transfer the property title to your name.

You’ll need to pay the transfer fee (usually around 4% in Dubai) and submit original IDs and documents.

Can Foreigners Get a Mortgage in UAE?

Yes, foreigners can apply for mortgages in the UAE through banks and lending institutions. Key requirements usually include:

Valid passport and visa
Proof of income and employment
Minimum salary (usually AED 15,000/month)
Bank statements and credit history

Banks usually offer up to 75-80% Loan-to-Value (LTV) for residents and around 60-70% for non-residents. Interest rates vary from 3% to 5.5% per annum, depending on the lender.

Documents Needed to Buy Property in UAE

Here are the typical documents required:

Valid passport copy
Residency visa (if available)
Emirates ID (for residents)
Proof of address
Source of income
Bank statements
No objection certificate (if required by a developer)

For companies investing, additional documents like trade license, board resolution, and power of attorney may be needed.

Are There Any Taxes or Fees?

The UAE does not impose income tax or capital gains tax on property purchases. However, you should be aware of the following costs:

Property Transfer Fee: Around 4% in Dubai (2% in Abu Dhabi)
Registration Fee: Around AED 4,000 to AED 5,000
Agency Commission: Around 2% of the property price
Developer Service Charges: Annual maintenance fees (varies by project)

There are no property taxes, making the UAE an attractive destination for investors.

Can Property Ownership Lead to Residency?

Yes. Foreigners who invest in property worth AED 750,000 or more can apply for a 3- or 5-year renewable residency visa under the UAE investor visa program. If your investment exceeds AED 2 million, you may qualify for the Golden Visa, valid for 10 years.

This is a major incentive for investors looking for long-term residency in a tax-free and safe country.

Final Tips Before Buying Property in UAE

Always deal with licensed brokers and verified developers.
Read the sales agreement carefully.
Consider hiring a legal advisor to guide you through.
Check the master community plans and any ongoing service charges.
Understand that off-plan properties carry more risks than ready ones.

Conclusion

Buying property in the UAE as a foreigner is no longer a complicated process. With clear laws, high rental yields, and visa-linked investments, the UAE offers strong reasons to invest. Just make sure you follow the legal steps, work with trusted professionals, and do your due diligence.

Whether it’s a beachfront apartment in Dubai or a smart investment on Yas Island, foreign ownership is your gateway to living and growing in one of the world’s most exciting regions.