The process of buying real estate property in Dubai as a foreigner is easy enough without traps associated with it. This guide eliminates all noise and only gives attention to what really counts in the year 2025.
Eliminate the Largest Risks First
Majority of the non-residents lose money or time due to missing these three checks:
- Purchase in non-freehold (only in some areas can a foreigner own property fully)
- Omitting the transfer fee of 4% at the Dubai Land Department or secret service fees.
- Buying at a lower price than the one needed to get a visa.
Other freehold zones are Palm Jumeirah, Downtown Dubai, Dubai Marina, JLT, Business Bay, Arabian Ranches, and the majority of communities that have been opened since 2020. Elsewhere is leasehold (not more than 99 years) or limited to GCC nationals.
The Minimum Investment Visa Requirements.
The Dubai Investor visa has two primary paths in relation to property in 2025:
- AED 750,000 2-year renewable residency visa (single or multiple properties)
- AED 2,000,000 to 10-year Golden Visa (one property or a combination of multiple properties, has to be finished or off-plan with at least AED 2M paid)
The mortgage will only be counted to the threshold in case the property is well finished and registered. Off-plan payments are recorded when the developer confirms the amount paid to him or her.
Simple Version- Tax Situation
- 0% personal income tax on rental income.
- 0% capital gains tax
- 4 percent one time transfer fee by the buyer.
- 5 percent VAT on the original sale of commercial property or on the purchase of the residential property by a developer who is overcharged with tax (not a common occurrence in 2025).
- Apt service fee: AED 12-30/ sq ft based on building quality.
Most of the inheritance taxes, wealth taxes, no recurrent property tax.
The Purchasing Procedure of a Non-Resident has to Follow a Series of Steps
- Select freehold land and an already built house or an almost built house to save time.
- Sign a Memorandum of understanding (MOU) and deposit 10% (in escrow).
- Get No Objection Certificate (NOC) with developer - AED 500- 5,000.
- Transfer title (takes 1- 2 hours) at visit Dubai Land Department or through an approved registration trustee.
- The remaining amount is 90% + 4% transfer fee + AED 540 registration fee.
- Get title deeds in real time (digitized).
Steps 2-6 do not require the physical presence with the exception of power of attorney conferred on a trusted agent.
Off-Plan vs Ready Property in 2025
Ready property
- Immediate rental income
- Lower risk of delays
- Bank financing can take place up to 50 per cent LTV in case of non-residents.
Off-plan property
- 5 -8% increased potential of capital growth.
- Adaptable payment schemes (usually 60/40 or 80/20).
- Construction delay risk (only Tier-1 developers selected: Emaar, Damac, Sobha, Nakheel)
Mortgage Rules of Non-Residents
- Maximum 50% loan-to-value
- Age: loan period + age should not exceed 65-70 years (bank dependent).
- Minimum wage AED 25,000/month or established equivalent income.
- 2025 Interest rates fixed at 4.5- 6.5% in 1-3 years.
Golden Visa Property Rules You Must Not Break
- Property needs to remain in your name, throughout the visa time.
- It is not possible to refinance beyond 50 percent with the Golden Visa.
- Mortgage is subject to limitations based on the size of the equity amount, which must be AED 2M.
Service Charges / hidden costs (2025 Figures)
Typical ranges:
- Dubai Marina tower: AED 18-28/ sq ft/year.
- Downtown Dubai: AED 20–35/sq ft/year
- Jumeirah Village Circle: AED 10-16/ sq ft/ year.
- Palm Jumeirah villas: AED 8-15/ sq ft/ year.
Cooling (chilled water) is often charged independently in older Marina and downtown structures - budget AED 3-5/ sq ft additional.
Before You Sign, There is One More Checklist That You Have to Check
- Check freehold eligibility on Dubai REST app.
- Confirm developer NOC fee in writing.
- The Dubai Land Department checks the statuses on the websites.
- Add up the expense with 4 percent fee + agent commission (commonly 2 per cent) + trustee fees.
- Certify after mortgage, Visa-eligible amount.
Getting these rights and property ownership in Dubai is one of the easiest and tax efficient investments that a non-resident would make in 2025.