The UAE is like anywhere else in the world.
You may think that because it is a desert, things are not the same in the UAE as they are in your home country. Nothing could be further from the truth. You will find that once you start investing in this country, the transactions are almost the same.
It may be that the UAE charges different fees for home buying than your country, but they still charge fees. Understanding those fees and how much you are expected to pay is part of planning your real estate investment strategy for the UAE.
There will be more charges you have to pay than just the purchase price. Those charges increase if you add in extras like a home inspection.
There are different fees involved in any real estate transaction in Dubai or the UAE. Each of these fees will increase the purchase amount you will have to pay. On top of that the buyer will be the one paying all the fees even though it may be said the fee is split 50-50. Here is a list of those fees:
1. The Dubai Land Development Fees- 4% of the purchase price and it is said to be divided 50-50 between the seller and the buyer. The latter usually pays all of this fee.
**If you are making an all-cash purchase, then you won’t need to pay the mortgage registration fee. Also, these fees need to be paid within 60 days or your purchase will be cancelled.
2. Agency Fees- If you are using a real estate agency
3. Deposit- a minimum of 10% of the agreed purchase price is to be paid to the mortgage broker as a security deposit
4. Mortgage fees-
5. Insurance Fees-
6. Property Service Charge
These are paid to the Dubai Land Development and are based on the RERA maintenance and service index, priced per square foot
7. Dubai Electricity and Water Authority Fees
8. Misc. Fees- These are charged depending on the location of the home, type, and mode of purchase
The fees are quite straightforward and there is no secret to them. How much you will pay will depend a lot on the purchase price of the home or apartment, etc. Here are the 4 fees involved in property registration in Dubai:
There is a procedure you must follow and those rules are:
Then besides a sales agreement or contract, there are more documents you must bring with you when you register the transfer of property ownership:
There are a lot of benefits to buying property in this area. What helps soften the blow of all the fees you have to pay, you do not have to pay a lot of money in taxes.
There is no property, inheritance, or income tax in Dubai and that should make one feel better about buying real estate in this region. What you lose with all those fees you gain back by being able to save money where it counts.
When you are ready to expand your international real estate portfolio give our company a call first. We have over 10 years of real estate experience in both Dubai and the UAE.
Our expert RERA estate agents will help you understand all the fees you are expected to pay and approximate how much you will pay with your purchase. This information will help you plan your investment strategy in Dubai and our agents will be with you every step of the way.
The secret to doing business in Dubai is calling us today and setting up an appointment.
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