Legal Requirements for Foreigners Buying Property in Dubai (2025 Guide)

In 2002, Dubai issued a landmark decree allowing foreigners to own property in designated freehold zones. This shifted the market from a lease-only model to one of full ownership rights for expats.

• Freehold Ownership: Full ownership of property and land, registered under the buyer’s name with the DLD.
• Leasehold Ownership: Right to use property for up to 99 years, but not full ownership.
• Usufruct Rights: Long-term rights to use and benefit from a property without ownership (common in certain areas).

Regulatory Bodies:

• Dubai Land Department (DLD): Oversees property registration, title deeds, and ownership records.
• Real Estate Regulatory Agency (RERA): Regulates developers, brokers, and property transactions.

Key Distinction: While foreigners can freely buy in freehold zones (Downtown, Marina, Palm, JVC, etc.), areas outside freehold remain reserved for UAE/GCC nationals.

Check out our Area Guides for more info!

Foreign buyers must prepare and submit specific documents when purchasing property:

• Passport copy and Original Passport (mandatory for all foreign buyers).
• Visa copy & Emirates ID (for UAE residents).
• Proof of funds (bank statements, salary certificate, or mortgage pre-approval).
• Memorandum of Understanding (MOU - FORM F) Signed between buyer and seller, confirming agreed terms.
• No Objection Certificate (NOC) Issued by the developer to confirm no outstanding dues.

For financing, a mortgage pre-approval letter is critical. Learn more in our Guide to Financing Options for Off-Plan and Secondary Properties.

Once documents are prepared, the process of securing legal ownership is managed through the DLD:

1. MOU Signing → Buyer and seller sign, a security deposit (usually 10%) is placed with the sellers broker to be held in Escrow.

2. NOC Issuance → Developer makes sure that any outstanding dues are cleared and then issues NOC.

3. Transfer of Ownership at DLD:

• Both parties attend a registered Trustee Office

• Buyer pays the full balance as agreed in the MOU/Form-F

• Title Deed is issued in the buyer's name and the transaction is registered with the DLD.

Important Note: Escrow Accounts are used for Off-Plan Properties, all payments are held in a RERA-Regulated and Registered escrow account to protect buyers from dveloper misuse.

For off-plan investors, escrow accounts are the backbone of legal and financial protection in Dubai.

Foreigners and Expats must factor in the following statutory fees:

• Dubai Land Department (DLD) Registration Fee: 4% of purchase price.
• Trustee Office Fee: AED 4,000 (property value above AED 500,000).
• NOC Fee: AED 500–5,000 (developer-specific).
• Mortgage Registration Fee: 0.25% of loan amount + AED 290.
• Agency Commission: Typically 2% of purchase price.

Unlike many global markets, Dubai has no property tax or capital gains tax - a major legal and fiscal advantage for expats. 

• Geographic Restrictions: Expats can only buy in designated freehold zones (Downtown, Palm, JVC, Dubai Marina, Arabian Ranches, etc.).
• Land Ownership: Foreigners may purchase land plots in freehold zones, but developments are often subject to timelines and regulations set by master developers.
• Government-Owned Areas: Certain strategic or sensitive zones are restricted to UAE nationals.

Dubai’s inheritance laws differ from many countries, and expats must understand them clearly:

• Sharia Law Default: Without a registered will, inheritance follows Sharia principles.
• DIFC Wills Service Centre: Expats can register wills under common law principles, ensuring assets pass according to personal wishes.
• Title Deeds: Property ownership is transferable to heirs but must be processed through the DLD with supporting legal documents.

Recommendation: Any expat purchasing property in Dubai should regsiter a DIFC Will to protect their assets. Contact us to learn more about our conveyancing and property management departs and how they may be able to assist.

Foreign buyers are protected by Dubai’s regulatory system, but disputes can arise.

Common Real Estate Disputes in Dubai:

• Off-plan delays.

• Service charge disagreements.

• Ownership transfer issues.

Resolution Mechanisms:

• Rental Dispute Centre (RDC): Handles rental conflicts.
• RERA Arbitration: Mediates disputes between developers and buyers.
• Dubai Courts: For escalated cases.

Escrow Protection:

All off-plan payments must go into escrow accounts regulated by RERA — ensuring buyer funds are used only for construction.

Dubai ties certain residency rights to property investments:

• AED 750,000+ Property: 2-year renewable investor visa.
• AED 2 million+ Property: Golden Visa (10 years).

Unlike other markets, these thresholds are set by law and directly verified through DLD property valuations.

For a more lifestyle-driven perspective on visas, see our Real Estate Buying Guide for Expats.