The United Arab Emirates attracts investors every year. More than 80% of Dubai residents are foreigners, so real estate in the metropolis is always in demand. Foreign investors prefer to buy properties in Downtown Dubai, Business Bay, Dubai Marina, Palm Jumeirah, and other central communities popular with tourists. However, regardless of the property's location, the country's legislation provides for additional costs to purchase a home. It makes sense to take them into account before making a deal.

Dubai Land Department fees

The most typical list of fees is as follows:
  • an amount of 4% of the cadastral value of the purchased apartment or house (depends on the real estate you are buying);
  • a fee of 500 AED for a certificate of title (a document that confirms the right of ownership);
  • real estate agents' commissions amounting to 2% of the purchase price (depends on the real estate you are buying);
  •  the fee for a certificate of no objection for all transactions concluded directly with the developer is 5,000 AED (however, this fee is only for the off-plan newly-built houses, if you invest in the previously owned property, you will be free from it).
It is necessary to clarify the number of additional expenses before making a transaction, as the list may be expanded, and the amounts may change. After the owner buys the real estate, he will eventually have additional expenses for utilities.

Real estate maintenance

The owner is obliged to pay a mandatory annual contribution which will be later used for the property maintenance. It is spent on:
  • landscaping of the adjacent territory;
  • maintaining cleanliness;
  • maintenance of the pool;
  • major repairs and other services to maintain a comfortable lifestyle.
The cost is set for each residential complex separately and depends on the area and prices for the particular project. The more amenities there are in the complex, the higher the owners' expenses are. The rates per square meter range from $15-$20 and above. In elite properties, they can reach $50-$60.

Taxes for property owners in the UAE

The UAE provides property owners with favourable terms and conditions for owning property. There are no taxes on real estate itself and the income received from its use. You can rent out a house, get a net profit of up to 10% per annum, and have no obligation to the state. The only exception is a value-added tax, but it is applied only to commercial real estate. It makes up only 5% of the total sales.

Additional expenses when buying foreign real estate in a mortgage

Foreign investors are allowed to purchase housing with credit funds. But the process hugely depends on the status. Residents have more favourable conditions in comparison with non-residents. Both cases require payment of a fee for the transaction. It includes a fixed amount of 290 AED and 0.25% of the loan amount. For detailed information about buying real estate on credit, please, visit the website https://emirates.estate/.