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Dubai, a goldmine for property investment is brimming with investment opportunities constantly. An important question that often pops up in the discussion is: can foreigners buy property in Dubai?
According to the ‘Luxury Defined’ report by International Real Estate, 75% of the total property buyers in the UAE are native to foreign lands. Typically, yes, foreigners can buy property in Dubai. But there’s more to the subject matter.
If you are an expat, or not native to Dubai, but are seeking to invest in this luxurious place, you have come to the right place. Let’s explore this subject deeper in this read, and help you understand how foreigners can buy property in Dubai, any regulations involved in the process, and other angles pertaining to the topic.
But first, let us find out exactly why foreigners and expats seek property investment opportunities in Dubai.
Top Reasons for Foreigners to Invest in Properties in Dubai
Dubai has tactfully leveraged its geographical position, contrasts and diversity. The city has witnessed extraordinary growth over the years, and is a captivating investment opportunity in itself for foreigners and expats.
Let us find out the top reasons why foreigners jump to invest in Dubai real estate.
Tax Concession
UAE is globally renowned for its regulations and policies that encourage foreigners to buy properties for investment purpose here. One of these comfortable policies is that centered on ‘tax.’
There is absolutely no annual property tax, capital gains tax, VAT, rental revenue tax and income tax in Dubai. Naturally, with fewer taxes in the city, the Dubai real estate market is a magnet for foreign investment
Access to Key International Markets
Dubai has brilliant access to prominent foreign markets such as the Middle East, Africa and Asia. Plus, it has a great connection to many notable international commercial hubs in Europe and America. Thi opens up many avenues for prosperity in the city especially for foreigners leaving them to carry out investment in Dubai.
Accelerating Economy
Dubai, a strategic crossroads between the West and East is a noteworthy regional centre for all kinds of organizations seeking ways to develop in either, or both the directions. International investment in Dubai is also rooted in the city’s stable economy.
Opportunities Boasting High ROI
Real estate investment in Dubai is associated with high returns. The ROI (return on investment) that Dubai houses, villas, commercial properties and other real estate in the city boast is even higher than that offered by real estate in New York and London.
Moreover, the property prices in Dubai are constantly on the rise, leaving a significant profit margin for investors.
Easy Investor Visa & Foreign Ownership
In the past decade, the UAE has brought in several visa incentives for property investors in the region. With only AED 1 million, investors can easily qualify for a two year resident visa in Dubai.
Moreover, the UAE has also introduced ‘golden visas’ to facilitate investors in Dubai. A ‘golden visa’ is a ten year renewable visa offered to business people and investors who have invested around AED 2 million in the city.
Not just that, but the UAE government has also implemented investor-friendly rules and regulations including 100% foreign ownership, long-term visas and five year retirement visas for foreign investors.
All these reasons along with the city being a hot spot for tourists certainly make investment in Dubai a lucrative option for foreigners and expats.
So are there any regulations for foreign investors in Dubai?
A few, yes.
Dubai Property Regulations for Foreign Investors
While the citizens of UAE and the Gulf Cooperation Council (GCC) can purchase real estate in Dubai absolutely anywhere, foreigners can only purchase that in designated foreign ownership regions as established by the Ruler of the Emirate of Dubai.
These regions include the following:
- The World Islands
- The Palm Jumeirah
- Business Bay
- Downtown Dubai
- Burj Khalifa
- Dubai Marina
- Old Town
- Emirates Hills
- Jumeirah Beach Residence (JBR)
- Arabian Ranches
- Jumeirah Lakes Towers (JLT)
- Midriff (specified plots)
- Discovery Gardens
- Falcon City
- Dubai Investment Park (DIP)
- Dubai Motor City
- Dubai Sports City
- Dubai South
- Jumeirah Islands & Jumeirah Village
- International City
While this regional stipulation does exist for foreign investors seeking investment opportunities in Dubai real estate, they do not require to apply for a visa to buy any property. Buying property in Dubai makes them eligible to easily apply for residency visa in the city.
Tax Regulations for Foreign Investment in Dubai
Foreign investors need not pay any inheritance or income tax on any Dubai property (in the specified areas) they buy, be it the Palm Jumeirah homes, residential properties in Downtown Dubai, Dubai villas in the Dubai Hills Estate, and gorgeous property in the Dubai Creek Harbor.
Having said that, foreign investors are subjected to a 4% transfer fee that is payable to the Dubai Land Department. This fee is payable when the property that they buy is transferred in their name. Additionally, they also have to pay a ‘housing fee’, which is about 5% of the average rental value of the respective area.
How Can Foreigners Buy Property in Dubai?
Just like the city’s government has made investment in Dubai super convenient for foreign investors, the real estate consultants, agencies and organizations has done the same when it comes to finding the right properties to invest in.
If you are a foreigner looking to buy property in Dubai, be it a Dubai mansion, Dubai condos, hospitality real estate or any commercial property, you can find lots of websites that serve the purpose. Plus, there are brilliant real estate consultants and providers in the city including Elan that make the entire process of buying property in Dubai a real breeze for you.
Get Started Without Further Ado
The Dubai real estate market is actually growing like wildfire nowadays. If you wish to buy villa in Dubai, Palm Jumeirah homes or any alluring real estate in the city, now is certainly a good time.
It is best to connect with a real estate expert in Dubai, and start your search for commercial property or luxury apartments for sale in Dubai. Honestly, it will be an investment that will continue to pay itself multiple times over the long run.