Alsuwaidi & Company LLC
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes. Foreigners (including non-resident individuals and foreign-owned companies) may own and occupy real estate in the UAE but only in designated areas as determined by each emirate. In Dubai and Abu Dhabi, non-UAE nationals can acquire freehold, leasehold or usufruct rights in specified zones. Ownership of shares in property-owning companies is allowed but if the company is foreign-owned, the same geographic restrictions apply. Emirate-level regulations prevail as real estate is governed locally. Outside designated areas, ownership by foreigners is prohibited, though long-term leases may be available.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
Yes, there are restrictions. While foreign companies may obtain financing to purchase real estate in the UAE, lending is generally limited to properties located in designated freehold or investment zones. Banks licensed in the UAE must comply with the UAE Central Bank. Some lenders may restrict lending to onshore companies or those with local presence. In practice, foreign offshore companies (e.g. BVI or Cayman entities) may face difficulties obtaining loans unless the property is held through a UAE incorporated SPV or the lender has a risk appetite for cross-border enforcement.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
When buying real estate, buyers generally pay 4% of the purchase price to the Dubai Land Department (rate may vary by emirate) including administration fee. Registration fees, trustee fee and agency commissions (usually 2%) also apply. There is no Value Added Tax (VAT) on residential property sales but commercial properties may attract 5% VAT. No capital gains tax or stamp duty applies. Buyers should also account for developer or service charges in certain projects. Legal fees may vary depending on the complexity of the transaction.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
No taxes applicable on the ownership of real estate in UAE. However, municipality tax or municipal fees may apply depending on the emirates. In Dubai, owners pay 5% housing fee (calculated on annual rental value) via utility bills, which can be passed to tenants. In Abu Dhabi, non-GCC owners pay an annual 3% municipal fee. Service charges, maintenance fees, and community levies are typically payable by the owner but may be contractually passed on to tenants in lease agreements. No capital gains tax or wealth tax applies to property ownership.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
There are currently no real estate taxes or tax breaks in the UAE to mitigate property tax liability, as there is no capital gains tax, income tax, or stamp duty on property ownership. However, in Dubai free hold areas, foreign property owners may qualify for the 10‑year Golden Visa by subscribing to property worth AED 2 million or more. Properties can be combined to meet the AED 2 million threshold, including off‑plan and mortgaged units if net equity ≥ AED 2 million and supported by a bank NOC. The visa grants family sponsorship, long‑term residency and freedom to live, work or study in the UAE
How is the ownership of Real Estate evidenced in your jurisdiction?
Ownership of real estate in the UAE is evidenced by a title deed issued by the relevant Land Department of each emirate. The title deed identifies the owner, property details and type of ownership. Only registered titleholders are recognized as legal owners and title deeds are required to enforce rights, sell, lease or mortgage the property.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
The Property Register is not open to the general public in the UAE. Access is restricted to parties with legitimate interest. The following may inspect the register and request certified copies of the documents from the relevant Land Department:
1. Registered owner or parties with a documented legal interest;
2. Judicial authorities and court-appointed experts;
3. Competent regulatory or government authorities; and
4. Licensed law firms and real estate trustees registered with the Land Department
Generally, access requests require supporting documentation and are subject to the Land Department’s review and approval.