Dubai FAQ's
What Taxes will I have to pay?
Dubai has no taxes of any kind when purchasing a property in the emirate. Dubai also benefits from no business taxes, except in the banking industry.
Who can buy?
Anyone. All nationalities can purchase property in Dubai
What finance options are available?
When buying off-plan property in Dubai, there is a choice of financing options available. Finance can take the form of a standard home loan of up to 70% of the property purchase price; alternatively the developers themselves may offer a lengthy repayment plan as a purchase option. These packages come at competitive rates and add the convenience of fixed monthly repayments over anything from 5 to 15 years.
Do I need a UAE bank account?
No. Purchasers are not required to have a UAE bank account to purchase in Dubai.
Can I apply for residency?
Yes. Under most current regulations, property owners can apply for residency from Dubai Naturalization and Residency department.
Are there any hidden taxes?
Dubai has no taxes of any kind! Dubai also benefits from no business taxes, except in the banking industry.
What is an escrow account?
Under the new Law No 8, all property developers in Dubai must be registered with the Real Estate Regulatory Authority (RERA)
It is an advantage to hold an escrow account as it protects your funds and ensures
safety of purchase.
With an escrow account you have the assurance, security and safety that your monies are protected by an impartial third party.
All Select Property developments in Dubai have a secure Escrow Account
Are escrow accounts standard practices in Dubai?
Bay Central, Select Property’s previous project on Dubai Marina launched at the end of 2006, pioneered investor protection in Dubai by offering purchasers a unique ‘escrow’ arrangement governing collection and release of purchase monies paid to the developer over the construction period.
Since then the Dubai Government introduced Law 8 in 2007 concerning ‘Guarantee Accounts of Real Estate Development in the Emirate of Dubai'. The law applies to any company receiving payments for property in new developments that is sold prior to completion or ‘off-plan’.
Every developer must now have to apply to Dubai Land Department to open a ‘guarantee account’, known more commonly as trust or escrow accounts. In order to do this they must submit important documents including the title deed of the plot being developed, approved architectural designs and layouts, a letter of approval from a master developer and a trade license.
If these documents are in order, the trust account will be opened according to a written agreement between a developer and the Land Department. Money paid by buyers towards properties will then be deposited in a special account held by an approved bank opened under the name of the property development.
The law also states that developers must apply to the trust account manager to release money from the account. The developer must first produce a certificate from a consultant working on the property that a pre-agreed stage of construction has been reached. The trust account manager must then inform the Land Department about the sums being released to the developer.
Even when a project is complete the developer will still not be given access to all the payments. The Land Department will keep 10 per cent of the project value for one year after completion until all units are registered in the names of buyers and title deeds are issued in their names.
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