Legal aspects of buying real estate in the UAE: What foreigners need to know.

Buying real estate in the UAE is becoming an increasingly popular move among foreigners, and for good reason. But before taking the plunge, it's important to understand the legal aspects that may affect your decision. The UAE offers attractive conditions for investors, but knowing the local laws will help you avoid unpleasant surprises. In this article, we will discuss the key points that every foreign buyer should consider.

Types of real estate available to foreigners

When it comes to buying real estate in the UAE, it is not only important to understand the difference between freehold and lishold, but also to be prepared for the different financial aspects associated with each of these types of ownership.

Freehold: Total freedom

Freehold - it really is investor gold mine. Imagine you're buying an apartment in Dubai Marina. Real estate value in such zones may start from $300,000 for a studio and up to several million dollars for luxury penthouses. Freehold ownership gives you full ownershipwhich means that you can sell, rent or even inherit the property without restrictions. This makes freehold especially attractive for those who consider the purchase as a long-term investment or plan to live in the UAE.

Lieshold: Long-term leases

Lickholdon the other hand, suggests long-term leaseusually for a period of up to 99 years. It could be great option For those who want to use the property but are not ready to invest in full ownership. В SharjahFor example, you can search for lickhold objects by more affordable pricesstarting with $150,000. However, it is worth remembering that at the end of the lease term. real estate rights are returned to the owner of the landwhich makes this option less attractive For those looking for a long-term investment.

Financial aspects

When choosing between freehold and lickhold it is important to consider not only purchase pricebut also additional costssuch as registration feeswhich are usually about 4% of the value of the property. It's also worth considering annual maintenance costswhich may vary depending on the type and location of the property. Ultimately, the choice between freehold and freehold will depend on your personal goals and financial capacity. Both options have their own advantages and disadvantagesIt is important to carefully weigh the pros and cons before making a decision. If you have any questions or would like more detailed information, it is always best to contact professional counselorsthat will help you make the right choice.

Rights of foreigners to purchase real estate

Buying real estate in the UAE for foreigners may seem like a daunting task, but if you understand the rights and rules, the process will become much clearer. It is important to take into account that each emirate has its own laws, and it is necessary to familiarize yourself with them before starting the transaction.

Dubai and Abu Dhabi

In major emirates such as. Dubai and Abu DhabiForeigners are allowed to purchase real estate in designated zones. These zones are called freeholdand where buyers can obtain full ownership of the property. This means that you are free to dispose of your property: sell, rent or inherit.

Sharjah and other emirates

In Sharjah and some other emirates the opportunities for foreigners to buy real estate are more limited. Most of the properties here are available on terms of lickholdThis involves a long-term lease, usually for up to 99 years. This gives you the right to own the property, but not the land on which it is located. This option is suitable for those who do not plan to stay in the UAE permanently.

Ownership for 99 years

When it comes to "99-year ownership", this refers to a Lienhold. You get ownership for a long period of time, which can be a convenient option for temporary residency or investment without the intention of permanent residence in the country.

Useful tips

• Research local legislation: Before buying, be sure to research the laws of the Emirate in which you intend to purchase real estate.
• Consult with professionals: Consult lawyers and realtors who specialize in the UAE real estate market to avoid mistakes and misunderstandings.
• Check the buying area: Make sure that the property you choose is indeed in an area where foreigners are allowed to buy.

Understanding your rights and limitations will help you make informed choices and avoid potential problems in the future.

Basic documents for the transaction

Buying real estate in the UAE requires the preparation of a certain set of documents. While the bureaucracy may seem complicated, with the right advice and preparation, things will become much easier. Here's what you'll need:

Passport

Your passport is the main document you need. It must be valid at the time of the transaction. Make sure you have several copies, as you may need them at different stages of the process.

Resident visa

While a resident visa is not always required to purchase real estate, it can make the process much easier. If you have this visa, you can get through some of the bureaucratic procedures more quickly and easily.

Identification number

This number can be obtained from the land department and is required for real estate registration. The process of obtaining it may seem complicated, but in practice it is just another step towards your dream of owning your own home in the UAE. It usually requires you to fill out a form and provide copies of documents.

Bank account in the UAE

For all financial transactions related to the purchase, you will need to open a UAE bank account. This will allow you to easily manage your funds and make the necessary payments. It is important to choose a reliable bank that will offer you convenient terms of service.

Additional documents

• Income statement: In some cases, proof of your ability to pay may be required.
• Sale and Purchase Agreement: Be sure to check all the terms and conditions and sign only after consulting with a lawyer.
• Documents from the developer: If you are buying a property under construction, make sure you have all the necessary documents from the builder.

Useful tips

• Prepare everything in advance: Gather all documents before the transaction to avoid delays.
• Consult with professionals: Lawyers and realtors can help you understand the intricacies and avoid mistakes.
• Make sure your documents are up to date: Make sure all documents are up to date and valid at the time of the transaction.

Having collected all the necessary documents and following these tips, you will greatly simplify the process of buying real estate in the UAE and will be able to avoid unnecessary delays and problems.

Expenses and taxes when buying real estate

Now let's talk about money. Buying real estate in the UAE comes with a number of expenses, and it's important to be prepared for them. Here are the main ones:

Registration fees

These fees are generally as follows 4% of the value of the property. It's like a kind of luxury tax, but one you can't do without. This money goes to formalize the transaction and register your property with the land department.

commissions

Don't forget that realtors and lawyers don't work for free. Their services need to be factored into your budget, too. Realtor commissions can be as follows 2% to 5% of the property valueDepending on the agency and the complexity of the transaction. Legal services may also vary in price, but are usually a fixed amount or a percentage of the transaction.

Property and Service Tax (Service Charge)

This tax varies by facility and zone. It is like the utility bill for your home. On average, service charge can range from $10 to $30 per square meter per year. This money goes towards the upkeep and maintenance of common assets such as swimming pools, gardens and security.

Additional costs

• Legal services: The cost may vary, but it is best not to skimp on this item to avoid problems in the future.
• Real estate insurance: This is additional protection for your property and the cost depends on the type of property and the insurance company.
• Real estate appraisal: Sometimes an independent appraisal is needed to confirm the market value of an object.

Don't forget about possible additional costs such as legal fees and insurance. These may seem like small things, but they add up to a significant amount of money.

Legal risks and how to avoid them

Understanding and avoiding legal risks will help you avoid unpleasant surprises and make the process of buying real estate in the UAE safer and more comfortable.

Real estate and residence permit

Buying real estate in the UAE not only opens the door to luxury living, but also provides a unique opportunity to obtain a resident visa. This makes real estate investment even more attractive to foreigners seeking to link their lives with this dynamic country.

Golden Visa

One of the most desirable options is Golden Visa. It's really like golden ticket into the world of the UAE. This visa allows not only livebut also work and learn in the country without the need for permanent status renewal. It is granted for a long term - up to 10 years, which provides stability and confidence in the future.

Conditions and procedures

Obtaining a visa requires meeting certain conditions and going through certain procedures. Investment amount in real estate often plays a key role. For example, obtaining a Golden Visa through the purchase of real estate may require an investment of from 2 million dirhams (approx. $545,000). The visa application process may take some time, but it's worth it.Considering the benefits it provides.

Advantages of obtaining a visa through the purchase of real estate

• Long-term accommodation: The ability to reside in the UAE for several years without having to constantly renew your visa.
• Freedom of movement: Visa holders are free to enter and leave the country.
• Business opportunities: Visa opens doors for doing business and investing in the UAE economy.
• Access to education and medicine: Opportunity to utilize local educational and medical facilities.

The process of buying real estate in the UAE

Let's move on to the most interesting part - the shopping process. It's not just a trip to the store for bread, but a whole chain of steps, where each of them is important.

1. Object selection - the first and perhaps the most exciting stage. The choice is huge, from luxurious apartments to cozy villas.
2. Signing of a Memorandum of Understanding (MOU) - it's like a handshake between you and the seller. The document records the intentions of both parties.
3. Payment of deposit - usually 10% of the value of the property. This step confirms your seriousness.
4. Document verification and legal due diligence - This is where lawyers enter the arena to make sure everything is clean and transparent.
5. Conclusion of the sale and purchase agreement (SPA) - the final chord after which you become the owner.
6. Property registration - the final step that makes you the official owner in the eyes of the law.

Of course, on this path can not do without the help of professionals - realtors and lawyers who know the market as their five fingers.

In the next installment, we'll discuss what documents you'll need, what costs await you, and how to avoid legal risks. Stay tuned for all the details!

Conclusion

In conclusion, buying real estate in the UAE for foreigners is an exciting but complex process. Knowing the legal aspects, understanding the market and the help of professionals will help you avoid mistakes and make the right choice. If you still have questions or want to start the buying process, do not hesitate to get in touch with our team of experts who are ready to help every step of the way.