Are US Citizens Allowed to purchase property in Dubai?  

Yes - the US citizens are able to purchase real estate in Dubai. The UAE is open to foreign investment and Americans can own property in special freehold areas in Dubai fully. The route is legally assisted, and is becoming more and more favourable to international buyers, whether it is luxury apartments , or off-plan villas.  

We have helped a great number of American investors make the process work at Invesca Real Estate, and they may be moving, purchasing a second residence, or have a high-yield investment in Dubai.  

We are going to take a tour of all you are expected to know as a US citizen, the legal structure, areas of interest, funding, paperwork, why Dubai is so attractive, and how our group can help you.  

The US citizens should be aware of the legal framework.  

The ownership of property by foreign nationals is established and controlled in Dubai. According to the rules of Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA), non-citizens of the UAE can purchase property on a freehold basis on specific areas.   

The main aspects that the legal framework offers:  

• Full ownership in approved areas on a 100 per cent freehold basis.
• Title deed which is issued in the name of the buyer (through DLD) that provides the right to sell, rent, transfer or inherit.
• Foreigners do not need to have local sponsorship or partner when purchasing within the freehold zones.
• Metropolitan Premium Properties.  

In simple terms: yes, as an American citizen you are legally allowed to purchase property within the city of Dubai, as long as it is within one of the specified freehold areas. The property in that zone will have the rights like a UAE national.  

Which areas can the US citizens purchase property in Dubai?  

The place is very important when making investments or moving out, both in terms of life and terms of returns. The following are some of the best examples of freehold zones that are often utilized by HNWIs, expats and American investors:  

1. Downtown Dubai - luxury living in the vicinity of the Burj Khalifa and mega shopping/ entertainment centers.
2. Business Bay Luxury - residential and commercial mixed-use in urban centre site.
3. Dubai Marina 2 - Scenic waterfront apartments that are highly rented.
4. Palm Jumeirah - archetypal beachfront living; villas and branded residences.
5. Jumeirah Village circle (JVC) - cheaper, family friendly and can still be freehold.
6. Meydan / emerging zones - Off-plan, which may be better yield.  

These coincide with the lists of the freehold zones that are generally published in Dubai.   

Funding Sources in the US Buyers.  

Regardless of whether you are purchasing property in Dubai as a US resident or a current resident of the UAE, the financing scene provides a number of channels:  

• Cash purchase: -The easiest and quickest, least amount of paperwork, no mortgage.
• UAE banks mortgage to non-residents Mortgage can still be taken (under conditions).
• Developer payment plans / off-plan instalment- There are a lot of projects with staged payments which can facilitate entry.  

Invesca Real Estate can help you with the structuring of your financing, comparing alternatives and knowing the costs (interest rates, LTV (loan-to-value) limits, and so on).  

The US citizens are required to have documents.  

The following is a list of the usual documentation required when purchasing property in Dubai:  

1. Valid US passport (clear copy)
2. Evidence of present residence in the US (utility bill, driver licence, etc)
3. Bank statement or evidence of source of funds (highly required under the Anti-Money laundering rules)
4. UAE entry stamp or visa (a tourist visa is usually sufficient, depending on developer/transacting)  

Although it is a simple process, it is faster when these are ready.  

Invesca Real Estate: Why Work with It?  

The value that our team will bring to American buyers is as follows:  

1. One-on-one advice to foreign buyers - we know the US investor mentality, currency issues, tax issues.
2. Legal/regulatory support The responsibility of this is to liaise with DLD, RERA, developers and banks to make sure that everything is in order.
3. Preferential treatment on off-market and hot properties - we assist you in the identification of strong performing opportunities (be it waterfront apartment or commercial unit).  

Investment analysis & rental-yield consultation — we will offer you ROI projections, zone analysis and guide you to make good decisions.  

The Reasons why Dubai is attractive to US Investors.  

American investors have good reasons as to why Dubai should continue to feature on their radar:  

• No capital gains tax, 0% property tax in Dubai.
• Large rental returns: Freeholds have recorded high rental returns of about 6 8 percent (gross) on well-positioned properties.
• Eligibility on Golden Visa through property investment: ownership of property beyond specified limits may allow long term benefits of residence.   

Good international connectivity, good legal environment in Dubai, and good investment climate that can suit the US investor profiles.  

How to Buy Property in Dubai step by step (US)  

The following is a simplified process, and how to Buy Property in Dubai step by step s will be followed (with the assistance of Invesca Real Estate):  

1. Filter properties (virtually or through a visit to property) through our listing.
2. See (physically or virtually) the property and analyse developer track record, area analytics.
3. Book the property using a reservation fee.
4. Sign Sales Purchase Agreement (SPA) or MoU (Memorandum of Understanding).
5. The balance or financing kicks in.
6. Register title deed with DLD through Transfer of ownership. Pay the transfer fees.
7. Delivery of property (keys, move-in or leasing).  

We do the coordination with the developer, lawyer, DLD and banks to make the smooth execution.  

Prices & Additional Reflections.  

More than the cost of purchase, you must take into consideration:  

1. Transfer fee: DLD charges standard 4% (of purchase value) on property transfer.
2. agent/ developer fee: This varies depending on whether you are purchasing resale or off-plan.
3. Service charges / maintenance: This is of particular importance to high-rise communities / waterfront.
4. Mortgages/interest: In case of financing, look at the interest, currency risk (assuming US $ funding), exchange rates.
5. Tax implications in the US: Although Dubai may not directly tax you, you may still need to report on US tax/residence.
6. Due-diligence: Be sure that the property is within a freehold area - purchasing beyond these areas may limit the rights.   

US Investors popular Freehold Zones.  

The following are the most recommended areas to the American buyers (easy to remember):  

Yields depend on type of units, size, floor, finish and market cycle.  

Common Mistakes to Avoid  

In purchasing property in Dubai, particularly overseas, these are some of the pitfalls to be avoided:  

• Failure to confirm whether the property is actually in freehold zone to foreigners.
• Where it is external, you may not have so many rights.
• Failing to consider all the costs (transfer fees, service charge, maintenance).
• Omitting due-diligence on reputation of developer, and escrow (in particular).
• Overlooks the tax and currency implications to the investors in the US.  

Ignoring the rental yield as compared to price increase (entry cost is important).  

Conclusion  

Then, will the US citizens be able to purchase property in Dubai ? Absolutely. It is foreigner-friendly, in terms of legal rights to ownership, and tax incentives, as well as attractive prospects of investment, and this especially with American buyers wishing to expose themselves to the international real estate market.  

We have Invesca Real Estate to assist you by making the whole process easier, as in choosing the most appropriate type of freehold zone, financing and registration, to assist you in ensuring that the planning of your real estate investment or a relocation plan is the most optimal.  

FAQs  

Q1. As a US citizen, do you require a UAE residency visa to purchase real estate property in Dubai?  

No - you do not have to have a UAE residency visa to buy freehold land in the specially designated zones. The property can be purchased and owned by non-residents.   

Q2. Also, are there any restrictions on US citizens only?  

No V - no special restrictions against US citizens. The same is applied to all foreign nationals in specific freehold zones.  

Q3. Is it possible to rent the premises and get rental revenue?  

Yes - after you have owning the property and registered it, you can rent the property, which has to pay tenancy laws and service charges. The right is provided by the freehold ownership.  

Q4. Is a purchase or a sale of property taxable to me?  

There is no capital gains tax and no or very little property tax is usually imposed on property owners in the freehold zones in Dubai.   

Nevertheless, you are still required to take into account your US tax obligations (including foreign asset reporting).  

Q5. How much is the minimum amount of investment required to purchase residency through property?  

The investment-visa programs begin at approximately AED 750 000, and in case of long-term visas (Golden Visa) at approximately AED 2 million, according to regulations and the nature of the project.   

Q6. What would occur in case I purchase off plan and the developer procrastinates?  

In the off-plan purchases, the developer is required to deposit the funds of the buyers in an escrow account (controlled by RERA). Always make sure of escrow, track record and contract terms of developer.