The process of buying a property in Dubai involves four key legal steps:

1. Establishing Buyer and Seller Agreement

After identifying the property, consult a real estate agent to help negotiate and outline terms with the owner.

2. Signing an Agreement for Sale

Once terms are finalized, both parties sign a Memorandum of Understanding (MoU), known as ‘Contract F’ on the Dubai Land Department website. The buyer typically pays a 10% deposit at this stage.

3. Applying for a No Objection Certificate (NOC)
The buyer applies for a NOC from the property developer, which allows the transfer of ownership once any outstanding fees are cleared.

An average property transaction in Dubai typically takes around 30 days to complete, starting from the date the Agreement for Sale (MoU) is signed. This period covers the legal steps, including obtaining a No Objection Certificate (NOC) and transferring ownership. However, timelines can vary based on factors such as financing and developer approvals.

In the UAE real estate market, the Dubai Land Department (DLD) fee is 4% of the property value for both primary and secondary market transactions, typically shared between buyer and seller.

For primary market purchases:

AED 4,000 is charged for transactions over AED 500,000, and AED 2,000 for those below.

For secondary market transactions:

2% commission fee for the broker,

NOC fee, ranging from AED 500 to AED 5,000,

Plus the 4% DLD fee on the property value.

These fees are generally agreed upon and settled by both parties during the transaction.

To apply for a mortgage in the UAE, you'll need to go through a bank, and the mortgage registration fee payable to the Dubai Land Department (DLD) is 0.25% of the loan value, along with an AED 290 standard charge.

Documents typically required for UAE residents to secure mortgage approval include:

• Passport and visa copy of the purchaser
• Copy of Emirates ID
• Proof of current address (such as Ejari or DEWA bill)
• Salary certificate or proof of regular income
• Bank statements for 3-6 months reflecting salary credits
• Memorandum of Understanding (MoU) for the property sale
• Title deed of the property being purchased
• Seller’s passport copy
• No Objection Certificate (NOC) from the developer

The UAE introduced Value Added Tax (VAT) at 5% on January 1, 2018. According to the VAT law, most real estate transactions are either not subject to or exempt from VAT, except for the sale of vacant commercial properties and commercial property leases. Residential property rentals, including apartment and villa rents, do not incur VAT. However, if additional services are included in the rental agreement or provided separately (like maintenance or utilities), they may be subject to VAT.