Buying Dubai property from the UK

UK advice comes first

Many UK buyers hear that Dubai property income is tax-free and assume that settles the matter. Even where the UAE position is favourable, it says nothing about UK tax. Your UK tax position depends on your residence and domicile status and current UK rules, which change. We do not give UK tax advice.

Speak to a qualified UK tax adviser before you commit. Ask about rental income, gains on sale, inheritance planning and any reporting obligations. Their view may influence whose name the property is in and how it is funded. Also consider a Dubai will; see wills and inheritance for Dubai property.

How Dubai differs from buying in the UK

• No solicitor-led conveyancing by default. Resales run through RERA forms (A, B and F) and complete at a DLD trustee office. Many buyers still appoint a conveyancer; see conveyancing in Dubai.
• Freehold zones. Foreigners can buy freehold only in designated areas, including Dubai Marina, Downtown Dubai, Palm Jumeirah and Dubai Hills Estate.
• Transfer fee. The DLD transfer fee is 4% of the price, customarily paid by the buyer.
• Service charges. Jointly owned buildings have annual charges published through Mollak. They are central to the numbers, much like leasehold service charges in the UK.
• Off-plan is mainstream. Payments go into regulated escrow accounts and the sale is registered on Oqood.

Shortlisting and checking from home

Ask your agent for DLD-registered sale evidence, the latest Mollak service-charge figure and floor plans for each option. Request unedited video walk-throughs, and check the agent's licence and the advert's Madmoun QR code.

For off-plan, verify the developer and project on Dubai REST and read the off-plan due diligence checklist. For resale, confirm the seller's title deed and ask about any tenancy in place. Explore properties for sale in Dubai to get a feel for stock.

Moving money from the UK

Use a regulated UK bank or authorised payment provider, and keep every confirmation. Exchange-rate movements between agreeing a price and paying can be significant, so ask your provider about the options they offer. Expect compliance questions on source of funds from UAE banks, developers and trustee offices; have bank statements and evidence of where the money came from ready.

For resales, money usually needs to be in a UAE account in time for manager's cheques on transfer day. Our sending money for a Dubai property purchase guide covers timing.

Signing remotely

A UK power of attorney for use in Dubai generally needs notarisation, legalisation by the UK authorities, attestation by the UAE embassy, then attestation in the UAE and a certified Arabic translation. Confirm the current steps with the UAE embassy and DLD before you sign. A narrowly drafted POA covering the specific purchase is usually accepted more easily than a broad general one. See buying property with power of attorney.

Owning and letting from the UK

Most UK buyers let their property, at least at first. Dubai lettings are registered on Ejari, rent is often paid by cheque instalments and renewals are governed by the DLD rental index. Unless you plan to visit often, a property manager handles tenants, maintenance and service charges. See managing a Dubai rental from abroad and management for overseas landlords. Short-term letting requires a holiday home permit from Dubai's Department of Economy and Tourism.