Dubai is the doorway to the Middle East which makes it the land of opportunities for all. Be it the global or regional trade, manufacturing, fabulous tourist attractions and unmatched hospitality- Dubai stands out among the top players of the region. The Emirate of Dubai alone houses an astounding number of free zones dedicated to virtually every division of international trade and commerce. These state-of-the-art free zones offer world-class infrastructure, the likes of which were unheard of before along with that they also provide many tax relaxations for foreign companies that set up business in Dubai free zones.
Dubai is also one of the leading global financial capitals in the world. Many commercial companies operating in the Middle East and African region (MENA) have their regional offices based in Dubai. Mainland companies give access to regional consumer markets. These opportunities have drawn many local and international companies to set up shop in Dubai and enticed foreign expatriate talent looking for global business and investment opportunities with attractive paychecks.
Dubai is a global metropolis which presents the best infrastructure facilities to lead an elegant and quality lifestyle. The community of Dubai is very open and most tolerant. Residents are permitted to practice their culture and religion openly. Dubai has embraced strict laws which have been useful in maintaining low crime rates. It is one of the rare cities where the police employees are outfitted with supercars to tackle crime. Therefore, Dubai is regarded as one of the safest places on the planet.
Real Estate in Dubai
The real estate market makes a vital contribution to the economy of Dubai. The real estate business has seen an upward trajectory in its growth post liberalization of laws lifting restrictions on foreigner investors to buy a property in Dubai.
Many expatriates live in Dubai, working for several local and global organizations. Dubai affords superior connectivity between Eastern and Western worlds through in-house airlines which serve travellers globally. Many tourists have started buying properties in Dubai and making the real estate purchased their holiday home.
Many studies conducted have revealed that owning a property in Dubai makes more sense in the long run than renting a property in Dubai where the rents are more expensive to individual home buyers. The property market has witnessed its ups and downs during the global economic crisis of 2008. The market has since bounced back and rendered significant profitable returns to foreign investors.
Taxes and Fees Situation while Buying a Property in Dubai
Major metropolis and commercial hubs of the world enable non-citizens to buy and own properties. However, the purchaser is expected to spend a considerable sum of the extra money in taxes and other legal acquiescence procedures. Alternatively, Dubai gives many benefits to foreign property buyers.
No Property Tax
The Government does not impose any property taxes on the owners of the property in Dubai. It has been one of the principal driving factors for foreign investors to acquire and own property in Dubai. The property owners, mainly tourist or holiday home buyers, can now buy their dream home without worrying about spending vast sums of money on annual property taxes.
The Dubai Land Development (DLD) levies a registration fee while registering the property from seller to buyer. The cost is currently at AED 2000 for property value below 500,000 dirhams and 4000 dirhams for property value above 500,000 dirhams. The registration fee is relatively lower in Dubai when compared to the other of its contemporaries worldwide.
Dubai Land Development Transfer Fees
The transfer fee levied while the property transfer from one party to another. There is a four per cent transfer fee paid to Dubai Land Development (DLD) throughout the process of property transfer. The expense in total is shared between the buyer and the seller.
Estate Agency Fees
The property buyer is required to pay estate agency charges which are around two per cent of the purchase value. The fee is regularly the commission imposed by the real estate agent for their services, aiding the buyer in acquiring the property in Dubai.
The buyer is required to repay the valuation fee for the Dubai authorities while purchasing the property. The valuation fee sets the real-time value of the property and assists the parties to appraise the property. The Valuation fees ordinarily range somewhere between AED 2500- AED3500.
The fee comes into play while purchasing off-plan properties—the costs endeavours to cover the registration of all agreements between the purchaser and the off-plan property developers. The asking fees are currently fixed at four per cent of the total acquisition price.
The property owners are expected to pay recurrent rental tax to the local municipality. The rate of the tax is five per cent of the average rent in the neighbourhood. The fee is remitted post-registration of property by owners, though the buyer can collect payments from occupants in case of rented property and deposit with the authorities.
The acquisition of property in the Dubai real estate market promises good returns for investors. The infrastructure is highly-developed, bearing in mind the stringent adherence to international construction rules. A large number of properties provides consumers with plenty of possibilities to own a holiday home in Dubai.
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