Buying Property in Dubai and UAE: Process, Taxes and Visas

The United Arab Emirates is one of the few countries where a property owner pays no annual property tax, no income tax on rental income, and no capital gains tax when selling. Add to that the possibility of handling the entire purchase remotely and visa-free entry for 90 days — and it is clear why Dubai and Abu Dhabi are increasingly appearing in the plans of Slovak and Czech buyers. In this guide, we will go through the entire buying process, real costs, and risks worth knowing about in advance.

Can a foreigner buy property in the UAE?

Yes. Citizens of Slovakia and Czechia can buy property in the UAE without residency, a sponsor, or a local bank account. The only significant restriction is territorial — buying is possible only in designated zones:

• Dubai has over 40 freehold zones (Dubai Marina, Downtown, Palm Jumeirah, Business Bay, JVC, Dubai Hills and others). Foreigners in these zones acquire full, time-unlimited ownership (freehold) with the right to sell, rent, and bequeath the property to heirs. Outside freehold zones, foreigners can only hold long-term leasehold or usufruct for 10–99 years.
• Abu Dhabi has allowed full freehold ownership since 2019 in nine and more investment zones (Yas Island, Saadiyat Island, Al Reem Island, Al Raha Beach and others). Outside investment zones, foreigners cannot buy.

EU citizens have no special exemptions — the same rules apply to them as to other foreigners. In practice, however, this is not an obstacle: developer projects sold to foreign clients are virtually always in freehold zones, and apartments and villas are purchased in the same manner.

Step-by-step buying process

1. Reservation. A reservation form is signed and a deposit is made — for off-plan (properties under construction) approximately 5–20% depending on the developer's payment plan, for ready property around 10%.
2. Contract. For off-plan, an SPA (Sales and Purchase Agreement) is signed and the sale must be registered in the Oqood system at Dubai Land Department (DLD) — it is only through this registration that a legal claim to the unit arises. For ready property, an MOU (Form F) is signed, the developer issues an NOC, and the transfer takes place at the trustee office of DLD.
3. Title deed. After the transfer, DLD issues a title deed; for off-plan after completion of construction and full payment.
4. How long does it take. Buying ready property takes 2–6 weeks; for off-plan it follows the construction schedule.
5. Buying from abroad. It is common — either with a full power of attorney (notarized, superlegalized/apostilled, with translation), or electronically through DLD applications. The client does not need to be in the UAE at all.

Fees and taxes when buying

> Do not be frightened by this list. Not everything is paid by the buyer — some items are borne by the seller or developer, and some may already be included in the advertised price. These are also one-time costs when buying, not regular payments. For a specific offer, we will calculate in advance exactly how much you will pay on top of the price so you can make a decision with the final figure.

• Dubai: DLD transfer fee 4% of the price (in practice paid by the buyer; for off-plan paid upon registration in Oqood) plus administrative fees — title deed AED 580 and trustee office AED 2,100–4,200.
• Abu Dhabi: transfer fee 2%.
• Real estate agent's commission: when buying from a developer, it is typically paid by the developer, so the buyer pays nothing; on the secondary market it is typically 2% + 5% VAT.
• Mortgage: registration costs 0.25% of the loan + AED 290.
• VAT: residential properties are VAT-free (first sale 0%, subsequent sales exempt); 5% VAT applies only to commercial spaces.

In total, expect approximately 5–8% above the purchase price in Dubai; in Abu Dhabi less. Stamp duty or annual property tax does not exist in the UAE.

Annual costs of property ownership

No annual property tax is paid. However, you should budget for these items:

• Service charges (management and maintenance fees): for apartments approximately AED 12–30 per square foot per year (luxury towers more), for villas AED 4–8. For an apartment with an area of 70 m² this works out to approximately AED 9,000–23,000 per year.
• Housing fee (Dubai): 5% of annual rental value, charged monthly through the utilities account (DEWA). It is paid by whoever lives in the apartment — the tenant, or the owner.
• Utilities and cooling (DEWA + chiller): approximately AED 500–1,500 per month depending on consumption and season.

Rental income and returns

A foreigner can rent without restrictions. Long-term rentals are registered in the Ejari system in Dubai and in the Tawtheeq system in Abu Dhabi.

Short-term rentals (stays under 6 months) require a "holiday home" permit from DET (formerly DTCM) in Dubai: registration costs approximately AED 1,520 plus an annual fee based on the number of bedrooms, totaling approximately AED 1,900–2,800 per year, plus Tourism Dirham AED 10–15 per bedroom and night. All of this can also be handled through a licensed operator who manages the rental for you.

Taxation: the UAE does not tax individual income from rentals (0%); 9% corporate tax does not apply to private investment income from real estate held by an individual. Tax obligations may, however, arise in your country of tax residence — Slovakia and Czechia have a treaty with the UAE to prevent double taxation. We recommend discussing your specific situation with a tax advisor.

Gross returns in Dubai are typically in the range of 5–8% per year depending on location and segment — smaller apartments achieve higher returns, the luxury segment lower.

Residence and visas

Buying property alone does not automatically grant residence — you must apply for a visa. Options are graduated according to the investment value:

• Tourism: citizens of Slovakia/Czechia have visa-free entry for 90 days in any 180-day period.
• Investor visa (Dubai): from April 2026 onwards, the minimum value of AED 750,000 no longer applies — a sole owner of a completed property in a freehold zone can apply for a 2-year renewable visa regardless of price (for joint ownership, each applicant's share must reach at least AED 400,000).
• Golden visa for 10 years: property — quite possibly multiple units together — valued at a minimum of AED 2,000,000 (approximately €500,000) according to DLD valuation. Properties with mortgages and off-plan from registered developers are also recognized (for mortgaged property, bank NOC is required); from 2026 onwards, it also does not matter how much of the price you have already paid — only the DLD valuation of a minimum AED 2 million matters. The visa covers family members and does not require permanent residence in the UAE.

Financing

A non-resident can get a mortgage directly from a bank in the UAE: LTV is typically 50–60% (for off-plan more like 50%), rates approximately 4–6%, and income must be documented.

The most common practice for off-plan is a developer payment plan — for example 60/40 or 1% monthly, sometimes with payments after handover. It works without a bank and without interest.

A third option: a loan from a Slovak or Czech bank secured by domestic property ("American mortgage") — a domestic bank cannot directly mortgage the UAE property.

Risks and what to watch out for

• Escrow is essential. Buy off-plan only in projects registered with RERA with an escrow account: buyer funds can only go to the construction of that specific project and are drawn according to construction phases. Request the escrow account number and pay only to it.
• Developer history. Verify completed and on-time delivered projects and sales registration in Oqood — without it you have no legal claim to the unit.
• Real estate agent license. The agent must have a RERA license.
• Construction delays do occur — monitor deadlines, penalties, and compensation directly in the SPA.
• Secondary market: check for outstanding service charges — an NOC from the developer is a condition for transfer.
• Service charges vary significantly between projects, ask for them before reservation. Also factor in market cyclicality and in some neighborhoods the risk of oversupply.

Selling in the future

The UAE has no capital gains tax when selling (0% for non-residents either); upon transfer the 4% DLD fee is paid again, typically by the new buyer. Off-plan property can usually be sold before completion (so-called assignment) — the developer may require payment of a certain percentage of the price and a fee.

Capital gains tax may arise at home: approximately in Slovakia the income from sale is exempt after 5 years of ownership, in Czechia after 10 years (for acquisitions from 2021 onwards) — always according to your tax residence.

Frequently asked questions

Will the property really be mine, or just "for 99 years"? In a freehold zone, you own full, time-unlimited property registered with DLD — you can sell, rent, and bequeath to heirs.

Do I need to fly to Dubai to buy? No. Reservation, contract, and registration can all be handled remotely via power of attorney or electronically.

What taxes will I pay in the UAE? 4% when buying (Dubai), or 2% (Abu Dhabi). Then no annual tax, no rental income tax, no capital gains tax on sale. Obligations may arise in Slovakia or Czechia.

Will I get residence when I buy? As a sole owner of completed property, you can apply for a 2-year visa without a minimum value (from April 2026); from AED 2 million you can apply for a 10-year Golden visa also for your family.

Are funds safe with off-plan? With RERA projects they go to an escrow account and the developer draws them only according to construction progress.

What in case of inheritance? The property is inheritable; it is recommended to have a will registered in the UAE (for example DIFC Wills), otherwise inheritance may be governed by local law.

Next step

If you are considering buying in Dubai or Abu Dhabi, we would be happy to go through your plans for free and without obligation — from choosing a location through payment plans to visas. Contact us and save yourself weeks of searching.

In the meantime, you can check out current offers in the United Arab Emirates.

Information status: August 2026. Informational guidelines, not legal or tax advice.