All about Real Estate Registration and Transfer Fees in the UAE
25th April 2020
The process of real- estate registration in the UAE comprises many technical steps and documentation. It is somewhat chaotic and a tad slow. But given the circumstances, this is something that is mandatory for you to complete.
First things first! Being an expat, you might not have any functional idea of the process involved, as far as registration of the real- estate properties are concerned.
It was only in 2006 that foreign nationals were allowed to buy and lease real- estate in the UAE. Besides, the acquisition of properties by foreigners is only possible in specially designated areas that are commonly referred to as “Freehold” development. When it comes to properties for “leasehold”, the lease period for expats, in particular, does not exceed more than 99 years.
Since there is no such thing as income tax or property in the UAE, foreigners are required to invest or buy real-estate properties under full ownership rights.
Real Estate Registration in the UAE
There are some basic steps that must be followed when it comes to registration of real-estate in the UAE. By and large, the process tends to be case-specific.
Individual registration of real estate: In the event, where the buyer is an individual, then it becomes necessary to present the passport for registration of the transaction.
Registration of estate for company: Most of the companies are in a position to legally acquire real-estate and for the same reason they need to provide constitutive documents, certificate of registration, along with a resolution from the boards on investment and so forth. While the technicalities involved are no doubt confusing, but on presenting the right documents and with the right guidance, the registration process can be duly completed on time.
What about the overall cost and taxes?
You need to keep in mind that the sale of any property in the UAE is not subject to any form of tax. Besides, the parties are required to pay a fee for the registration of properties.
- It is the land department that imposes the overall land registration fee upon the resale of the estate, and the amount that is charged is usually in the range of 0.5%-4% of the cost of the transaction. The fee has to be paid by the buyer of the property.
- Service charges of realtors generally tend to be in the range of 1% -5% of the total cost of property and has to be paid by the buyer.
Is there any restriction as such?
Despite being an expat, you can acquire any real estate within the UAE will get access to all the necessary rights for resale and leasing of the desired property. Moreover, there is no restriction, as such, as to how you want to proceed with the whole registration process.