The first question a Russian buyer asks is: "Is it really mine?" It is. In the UAE, a foreigner can buy property in full ownership, but not everywhere. That is the one caveat you need to understand before the transaction.
Two forms of tenure
| Freehold | Leasehold | |
|---|---|---|
| What it is | full ownership | long-term lease, usually for 99 years |
| Term | indefinite | limited by the contract |
| Title registration | registered in your name with the Land Department | a right of use, with the land remaining the property of its owner |
| Sell, let or gift | yes | with restrictions |
| Bequeath | yes | within the remaining term |
| What happens at the end of the term | nothing expires | the right returns to the landowner |
| How common it is | in almost every new development | rare, almost always in older neighbourhoods |
Of the 2,963 projects in our catalogue where the tenure is stated, 2,955 are freehold. Leasehold is rare today and is found almost exclusively in older neighbourhoods.
Where foreign buyers can purchase
Dubai has a list of areas open to foreign ownership: freehold areas. It covers almost every district with new construction: Dubai Marina, Downtown Dubai, Business Bay, JVC, Dubai Hills, Palm Jumeirah and Creek Harbour. A foreigner cannot buy outside these areas, and no arrangement can get around that.
Other emirates have their own lists. In practice, if a development is openly offered to foreign buyers and the developer holds a sales permit, the area is suitable. This is verified in the project's documents, not by verbal assurances.
What freehold areas look like
Three districts from the open list, with one development in each. All three are sold freehold, with ownership registered in the buyer's name.
What you receive
Owning property in the UAE does not grant citizenship or, by itself, a residence permit. A residence visa is a separate process, with the qualifying threshold set by the state. Conditions change, so check them at the time of purchase, not in last year's article.
How this differs from buying a home in Russia
The word “ownership” is the same, but the process around it differs. Here are four differences that most often cause confusion.
Taxes
There is no tax on owning residential property in the UAE: neither an annual tax nor a capital gains tax on sale. There is a one-off transfer fee when you buy: 4% of the contract price in Dubai, payable to the DLD. For rentals, a municipality fee applies and is usually paid by the tenant through the utilities bill.
Important: no tax in the UAE does not remove the obligations of a Russian tax resident. Rental and sale income must be declared under Russian rules. Ask a tax adviser about this before purchasing.
Whose name to put on the title
There are three usual options: registering it in your own name, in the names of several co-owners, each with a specified share, or in a company's name. Each has different inheritance implications. UAE inheritance rules differ from Russian ones, and a will registered locally resolves the issue in advance. This is a case where half an hour with a lawyer before the transaction costs less than years of disputes afterwards.
The tenure is stated on the page for every development in our catalogue.
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