Dubai sells itself as open to foreign buyers, and broadly it is. The detail is narrower than the brochures suggest, and with off-plan property the detail is where the risk sits.
Where can foreigners own freehold in Dubai?
The legal basis is Regulation No. 3 of 2006, issued under Dubai's Law No. 7 of 2006 on property registration. It lets non-UAE nationals take one of three rights in designated areas: freehold with no time limit, usufruct, or a lease of up to 99 years. Outside those areas a non-UAE national gets usufruct or a lease at best, never freehold.
The original 2006 list names 23 areas, identified by plot number rather than community name. Palm Jumeirah, Dubai Marina, Emirates Hills, The World Islands and Palm Jebel Ali are named in the founding instrument. Check the plot, not the marketing name of the development.
One piece of market lore needs correcting. It's often said that GCC nationals can own anywhere in Dubai while other foreigners are confined to the designated areas. The regulation doesn't say that. Its operative term is non-UAE nationals, and the government's own property guidance draws no GCC distinction at all.
| Location | Rights available |
|---|---|
| Designated freehold areas | Freehold with no time limit, usufruct, or a lease of up to 99 years |
| Outside designated areas | Usufruct or a lease at best, never freehold |
How do you protect an off-plan purchase?
Off-plan is where most of the risk sits, and the law gives buyers real protection if they use it.
- Escrow. Under Law No. 8 of 2007, a developer selling off-plan pays buyers' money into an escrow account opened in the name of the project and used only for its construction. Each project needs its own account. Ask for the account details and check that your payments go there.
- Registration. Your sale and purchase agreement must be registered through Oqood, the Dubai Land Department's system, which creates an interim record of your interest until the title deed is issued at handover.
- Title and approvals. Confirm that the developer holds the land title and the planning approvals before you pay anything.
The Dubai Land Department registers and oversees; RERA supervises day to day. Between them they give a careful buyer the means to check almost everything. Use them.
Is Form F binding on a Dubai resale?
On a resale, Form F is the Dubai Land Department's official memorandum of understanding. European buyers often read it as a non-binding first step. In fact it's the executed sale contract, recording the price, a deposit that's conventionally 10 per cent, and the transfer date. Transfer then takes roughly 30 days for a cash buyer and 30 to 60 days with a mortgage. By convention rather than law, the buyer pays the whole of the 4 per cent Land Department transfer fee. Agency commission is conventionally 2 per cent, and it's negotiable.
How is Dubai property taxed?
There's no VAT on a residential purchase: the first sale of a new home within three years of completion is zero-rated, and later sales are exempt. Rental income from a personally owned home sits outside corporate tax where no licence is needed. Short-term holiday letting that needs a permit is different, and once licensed real estate turnover passes AED 1 million in a calendar year, corporate tax applies.
There's no federal inheritance tax, but succession still needs planning. A non-Muslim can register a DIFC will, which since 2019 can cover property in all seven emirates, and a property will must name the property. The UAE's civil transactions law was replaced in June 2026, so wills drafted against the old law are worth reviewing. How a property sits inside a wider family structure is covered in family-office property strategy.
How big is the Dubai market?
Volume isn't the concern. Dubai recorded more than 270,000 property transactions worth AED 917 billion in 2025, a record and up 20 per cent, and the first quarter of 2026 came in at AED 252 billion, up 31 per cent. Knight Frank counted 500 home sales above USD 10 million in 2025, more than any other market in the world. That depth is the reassurance. The checks above are what make it safe to take part.
For the full buying process, read buying luxury property in Dubai, and for homes on the market now, see Black Privé in Dubai.
Questions buyers ask
Can foreigners buy property in Dubai?
Yes, in designated areas. Regulation No. 3 of 2006 lets non-UAE nationals take freehold with no time limit, usufruct, or a lease of up to 99 years in those areas.
Which areas in Dubai are freehold for foreigners?
The original 2006 list names 23 areas by plot number. Palm Jumeirah, Dubai Marina, Emirates Hills, The World Islands and Palm Jebel Ali are named in the founding instrument.
How do you reduce the risk of buying off-plan in Dubai?
Use the protections the law gives you. Buyers' money must go into a project escrow account under Law No. 8 of 2007, and the sale must be registered through Oqood. Check both, and confirm the developer holds the land title and approvals.
Is Form F binding in Dubai?
Yes. Form F is the Dubai Land Department's official memorandum of understanding, and it's the executed sale contract, conventionally with a 10 per cent deposit.
Is there VAT on residential property in Dubai?
No. The first sale of a new home within three years of completion is zero-rated, and later sales are exempt.
Is there inheritance tax in Dubai?
There's no federal inheritance tax in the UAE. A non-Muslim can register a DIFC will, which can cover property in all seven emirates.
