While investing in the real market, especially in a country like Dubai, foreigners must have a deep knowledge of the rules and investments. Real estate laws for foreigners in Dubai are established to make their investment process easier and smoother. When you invest in Dubai as a foreigner, there are many questions on your mind. Can you invest in the property? Which type of property to choose from? Are you allowed to take a loan? And much more. Be ready to get answers to all your doubts, along with all the rules and regulations to consider.
Can Foreigners Buy Property in Dubai?
Yes, everyone across the world can purchase property in Dubai. With the help of a flexible investing plan, you can easily invest in either off-plan or ready-to-move-in property. Additionally, there is no restriction on the ownership type of the property.
Different Types of Ownership Plan
There are generally two types of ownership: Freehold and Leasehold Ownership. Below is the table that shows the difference between the two:
| Leasehold Ownership | Freehold Ownership |
| It is the property that you can purchase without having full ownership rights. | It is the one that gives you full ownership rights. |
| You can take it for up to 99 years. | There is no maximum duration to purchase it. |
Real Estate Laws for Foreigners in Dubai
Here are some of the laws that you need to consider as a foreigner who wants to invest in Dubai:
Type of Ownership
Earlier, foreigners were only allowed to purchase property in the leasehold areas. It means that they can not get full ownership rights on the property. However, with the recent changes in the laws, you are now eligible to get the property under a freehold area. Article 3 of Regulation No. 3 of 2006 indicated that you can own the property in freehold properties as well.
Buying Property in Sharjah
According to the Executive Council Resolution No. 26 of 2014 regarding the Usufruct of Real Estate Properties in the Emirate of Sharjah, you or the company owned by you do not have the right to own a property. However, you can use it and even earn a profit without any taxation for 100 years. You will have to look for the areas that are specified by the Government of Sharjah for this purpose.
Age Limit
You must be at least 21 years old to purchase the property. However, thanks to flexible laws of investing, there is no maximum age limit.
Minimum Salary
Of course, if you are buying the property with cash, there is no legal requirement. However, if you are buying it through the mortgage option, you will need to maintain a minimum salary of AED 15,000.
Mortgage Laws
If you are planning to purchase the property through a mortgage, you will need to consider some basic points:
- Most of the individual banks set up their own terms and conditions. Therefore, it is very important to check the mortgage rate and the type of mortgage you are choosing.
- The first thing that will be looked at by the banks is your income. You must have at least 15,000 AED per month to get quality for a mortgage. Thus, giving income proof is extremely important. However, if you are self-employed, your income proof may need to be higher.
- The financing features of Dubai offer you around 80% discounts and 25% collateral demands.
Residency Visa
Buying the property doesn’t guarantee you a residency visa. To get the Residency Visa, you will need to make at least AED 750,000. Once you have purchased a property of a similar amount, get ready to apply for the Residency Visa. Please note that buying the property gives you the path to getting the visa.
What Documents Do You Need to Invest as a Foreigner in the Dubai Real Estate Market
If you are willing to invest in the Dubai real estate market as a foreigner, you will need to get some important documents on your side. Below is the list of documents that you need to invest in Dubai:
- A Valid Passport: A Passport acts like proof of your identity.
- Income Certificate Proof: An Income certificate helps to show that you have enough money to purchase the property. It is extremely important if you are planning to purchase it through a mortgage.
- A signed purchase agreement: Once you and the seller have agreed to the terms and conditions, you will get a purchase agreement.
- Recent bank statements: Please note that you will only need to give them if there is a change in your salary in recent months.
Conclusion
Investors across the world are always interested in investing the Dubai’s real estate market. However, before investing in it, you must have a look at the Real estate laws for foreigners in Dubai. With the recent changes in the law, you are now eligible to invest in freehold areas as well. However, as a foreigner, you can not invest in property in Sharjah. Ofcorse you can use any property there to yield a rent or to use for personal use, but you can get ownership rights.
