Mortgage in the UAE for foreigners: everything you need to know before making a deal

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The United Arab Emirates consistently ranks among the countries with the most attractive residential and commercial real estate markets. Purchasing apartments or villas in Dubai has become not only a prestigious investment but also a way to generate passive income. However, despite the financial accessibility, not every expatriate is ready to pay the full cost of the property upfront. In such cases, a mortgage in the UAE for foreigners becomes a relevant solution.

Local financial institutions offer credit products not only to residents but also to foreign buyers. Although the terms may differ from the classic local housing loan, the opportunity to obtain a loan for property purchase is officially open and available to most categories of foreign citizens.

What do lenders offer?

The banking structure of the Emirates has long been adapted to the needs of international clients. Mortgages for foreigners in Dubai are issued for both ready-made properties and under-construction projects. Basic parameters vary depending on the bank and the borrower’s status. Typically, the loan term ranges from 5 to 25 years, with a minimum amount starting from 500,000 dirhams.

Both local and international credit organizations are present in the market. The most popular ones include Emirates NBD Bank, Mashreq, HSBC. The banking structure offers clear terms, online calculations, and English-language transaction support. The approval level directly depends on the borrower’s financial position, document quality, and compliance with basic requirements.

Key requirements for obtaining a mortgage in the UAE for foreigners

Before signing a contract, it is important to familiarize yourself with the specifics, restrictions, and approval process. Let’s consider the key parameters influencing the possibility of obtaining a loan:

borrower requirements — stable income, employment contract, confirmed credit history;
down payment — typically 20 to 25% of the building’s cost, depending on the bank and property type;
mortgage conditions in Dubai for foreigners — interest rate starting from 3.5% annually, available in both fixed and floating models;
loan term — from 5 to 25 years with the option of early repayment;
restrictions — property loans are only available for properties in specially designated Freehold zones.

The choice of a banking institution and credit program depends on the purpose of the purchase: own residence, rental income, or investment in value appreciation. In any case, a financial cushion and stable income will be required.

What is involved in the process of buying property on installment in Dubai?

The application process is organized to be as transparent as possible. Most operations, including document submission and terms negotiation, can be done online. However, obtaining a mortgage in the UAE for foreigners requires preparation: gathering and translating documents, obtaining pre-approval, and selecting property that complies with the rules.

The document package is standard but may vary depending on the applicant’s nationality, chosen lender, and employment status. Many Dubai banks offer different conditions, so it is important to clarify details in advance. It is also important to note that the process can only be completed through a licensed broker or accredited representative. The main requirements are outlined below:

mortgage documents — copy of passport, visa or Emirates ID, income confirmation (employment certificate, tax declaration), bank statements for 6 months;
employment verification — employment contract or business license if the borrower is self-employed;
selection of property in the UAE for foreigners — the property must be located in a zone allowed for expatriate purchase;
building appraisal — a mandatory procedure at the bank to calculate the property value and loan conditions;
creditworthiness — the lender assesses not only income but also total debt burden, including current loans and obligations.

After providing all the information and receiving approval, the agreement is signed, and an advance payment is made to the seller. The property then serves as collateral until the mortgage loan is fully repaid. The completion of the transaction is recorded in the land department, after which the owner receives property documents.

Additional Features

Obtaining a mortgage in the UAE for foreigners is possible only when formal requirements are met, but the process stands out for its flexibility and speed. From application submission to approval, it typically takes an average of 5 to 10 business days. Rejection is only possible in case of serious documentation violations or critically low creditworthiness.

Restrictions also apply to the property type: most financial companies do not finance commercial properties and old residential buildings. Preference is given to modern complexes with transparent legal status.

For buyers opting to purchase property in the UAE with a mortgage, there is a choice between a fixed rate (for 1–3 years) and a floating rate (tied to the Central Bank’s base rate). Some lenders offer combined schemes where the rate changes gradually.

Conclusion

Obtaining a mortgage in the UAE for foreigners is an accessible and well-developed tool for purchasing property, especially in investment-attractive regions. The market is stable, interest rates are predictable, and non-residents can expect a transparent process with minimal bureaucratic barriers.

The process includes application submission, document collection, property assessment, and contract signing. Most banks — including HSBC, Emirates NBD Bank, Mashreq — actively engage with foreign clients and offer tailored products.

Key borrower requirements include creditworthiness, proper property selection, down payment, and submission of supporting documents. When all conditions are met, a mortgage for foreigners in Dubai becomes a convenient tool for acquiring property without full upfront payment.

How to Open a Business in Dubai in 2025: Step-by-Step Guide

The United Arab Emirates have long been recognized as one of the most attractive destinations. Dubai takes the lead as the business capital of the region, combining lenient legislation, developed infrastructure, and a favorable tax system. In 2025, more and more foreign investors are interested in how to open a business in Dubai and what steps need to be taken for a legal launch of their company in the UAE.

Why Entrepreneurs Choose Dubai?

The reasons why businessmen pay attention to Dubai are obvious. The city offers a high standard of living, political stability, and an economy oriented towards global markets. Thanks to numerous free trade zones, a foreign investor can own 100% of their company without involving a local partner. This is especially important for those who want to run a transparent and fully controlled business.

Moreover, there is no personal income tax, and the corporate tax does not exceed 9%, making Dubai one of the most tax-efficient jurisdictions for small and medium-sized businesses. High investor protection, modern logistics, and digitalization processes make it easy to adapt to the local environment even without a deep knowledge of the Arabic language.

How to Open a Business in Dubai: Step-by-Step Guide and Jurisdiction Selection

The process of launching commercial activities requires a careful approach to the type of jurisdiction. The list of steps to start a business includes:

defining the niche and business format;
selecting the jurisdiction and preparing the founding documents;
submitting a license application to the chosen regulator;
renting an office (virtual or physical);
opening a corporate account in a local bank;
obtaining a UAE residency visa for business purposes.

This sequence allows you to meet all requirements and avoid delays in the permit acquisition stage.

What Documents Are Needed for Registration?

The registration procedure takes from 5 to 15 working days, depending on the chosen zone and type of license. A standard set of documents is required for registration, although in some cases, clarification of funding sources may be necessary—especially when obtaining a residency visa for investments in real estate or opening a deposit in a major bank. The minimum package includes:

copies of passports of all participants;
proof of address outside the UAE;
description of the business model (in the form of a brief plan);
certificate of no criminal record;
office or workspace lease agreement.

After obtaining the license, you can proceed to the next step—applying for residency visas for yourself and family members, completing the process of how to open a business in Dubai.

Golden Visa and Business Immigration through Investments

The UAE offers long-term residency visas, including the so-called Golden Visa, which is issued for up to 10 years. It can be obtained for significant investments in the economy, including launching an innovative project, participating in venture funds, or acquiring real estate above a certain amount.

It is important to understand that starting a business in Dubai is not just about commerce but also about strategic migration planning. Along with the license and residency visa, the entrepreneur gains the right to invite a spouse, children, and in some cases, parents, provided all family members are supported.

Opening a Bank Account and Taxation Specifics

After obtaining the license, it is necessary to open a bank account—a key step in the process of how to open a business in Dubai. In 2025, bank requirements have become stricter: detailed information about the company’s activities, founders, beneficiaries, and funding sources will be required. Without a bank account, conducting business will be practically impossible.

From a taxation perspective, businesses in the UAE continue to offer competitive conditions: 0% personal income tax, 9% corporate tax (if profits exceed 375,000 dirhams), and a 5% standard VAT rate on goods and services.

Rules may vary depending on the zone in which the company is registered. Therefore, it is important to consult with lawyers or licensed agents before registration.

Which Sectors Are Particularly Relevant in 2025?

In the current conditions, the region stimulates the development of high-tech and export-oriented industries—an important context for those exploring how to open a business in Dubai. The city actively invests in digital transformation, green economy, logistics, and medical innovations. Key sectors for starting a business include:

e-commerce and last-mile logistics;
consulting, marketing, IT solutions;
medicine, pharmaceuticals, biotechnology;
real estate, leasing, and asset management;
education and EdTech platforms.

The choice of direction not only affects the speed of obtaining a license but also the opportunities to obtain a Golden Visa, which requires the project to have a certain level of significance for the Emirates’ economy.

Legal Protection and Business Conduct Conditions

The legal environment in Dubai is geared towards protecting investors’ interests. Arbitration courts, English law in free zones, electronic document flow—all create a highly comfortable environment for development. An investor can expect quick dispute resolution, capital protection, and confidentiality guarantee.

Understanding how to open a business in Dubai should start with studying the rules of interaction with the local jurisdiction. Compliance with the law is the key factor for success. Having an office, transparent profits, correct employee registration, and timely submission of tax declarations are the minimum requirements to maintain the license.

How to Open a Business in Dubai: Key Points

In 2025, the question of “how to open a business in Dubai” is more relevant than ever—the city continues to develop, offering attractive conditions for foreign investors. By following all the steps: choosing the business form, obtaining a license, renting an office, opening an account, and obtaining a visa, the entrepreneur gains full access to one of the most progressive markets in the world.

The ability to adapt to the rules and think strategically opens doors not only to business success but also to long-term business immigration, with the opportunity to access markets in the Middle East, Africa, and South Asia.

August 26, 2025

What expenses await an investor when buying real estate in Dubai: a complete overview of costs

Acquiring property in the UAE may seem like a simple investment, especially against the backdrop of the absence of income tax. However, any deal in the Emirates is accompanied by mandatory financial expenses. The costs of buying real estate in Dubai include not only the payment for the property itself but also dozens of additional fees and duties. And if the buyer does not study the system in advance, the budget may unexpectedly increase by 8-10%.

For proper planning, it is worth analyzing the cost structure — from official payments to government agencies to hidden commissions and insurance. This is especially relevant for those considering long-term investments in Dubai real estate.

Mandatory fees and commissions

Any real estate transaction is accompanied by clearly defined expenses. They are regulated at the state level and do not depend on whether the property is purchased from a developer or on the secondary market. Let’s consider the parameters in more detail:

registration fee — 4% of the property value, transferred to the Land Department;
administrative fee — a fixed amount, usually around 580 dirhams;
agent’s commission — 2% of the price;
property ownership registration certificate — paid separately, around 250 dirhams;
notarial support — depending on the company and the complexity of the transaction.

The listed expenses for purchasing property are mandatory. Their payment is necessary to complete the registration and obtain all rights to the property.

Mortgage and additional expenses when buying property in Dubai

If buying a property involves a bank loan, the list of expenses significantly expands. In addition to the main payment for the property, the buyer will need to take into account a number of additional costs associated with the financing process. For example, there is a mortgage fee, which is 0.25% of the total loan amount.

Additionally, banks require a mandatory property valuation, the cost of which can reach 3,500 dirhams. Property insurance also becomes a mandatory condition — its amount is calculated individually depending on the property characteristics and the insurance company’s terms.

Separately paid is the registration of the mortgage agreement at the Land Department, as well as legal and notarial costs associated with the transaction.

These measures ensure transparency of operations and compliance with all legal norms, which is especially important for banks. That is why an investor needs to clarify the loan structure and related obligations in advance, especially if they are a non-resident of the UAE.

However, buyers with confirmed income and a positive credit history can expect more favorable conditions from banks, including reduced rates and flexible repayment terms.

Indirect expenses when buying property and hidden costs of housing in Dubai

In addition to mandatory payments, there is a category of expenses that are rarely mentioned in developers’ brochures. However, they need to be taken into account when budgeting. Hidden expenses when buying property in Dubai include:

DEWA account transfers (electricity and water);
deposits for utilities — not always refundable;
complex maintenance services;
services of lawyers and translators;
fee for issuing electronic access cards, parking, and services from the management company;
property transfer tax — included in the registration fee, but sometimes specified separately in some contracts.

These payments can add several thousand dirhams to the final cost, especially if the property is located in the premium segment with developed infrastructure.

Documents to prepare in advance

To avoid delays and setbacks in the property acquisition process, it is recommended to prepare all the necessary documents in advance, which will not only expedite the process but also help avoid unnecessary expenses related to delays or additional commissions.

The mandatory documents include a valid passport — both a copy and the original will be required. It is also necessary to provide a preliminary agreement with the seller or developer, especially if the transaction is at the reservation stage. In the case of purchasing with a mortgage loan, the bank will require income confirmation.

For foreign citizens, a mandatory requirement is the presence of translated and notarized documents that comply with local legislation requirements. In addition, an application for registration with the Land Department is submitted before the start of the transaction, which directly affects the expenses when buying property in Dubai.

Even with the assistance of an agent, some documents will need to be filled out personally, and the correct completion of these documents directly affects the timing of obtaining the official property ownership certificate.

Property investment: what to know about housing formats

Different types of properties — studios, apartments, villas — entail different levels of expenses. For example, when purchasing a studio in a completed building, the expenses will be lower than when investing in a property under construction. The cost of annual maintenance also varies: for high-budget villas, it is higher than for regular apartments.

Investing in Dubai real estate is profitable if you choose a format with minimal operating costs in advance. This is especially important for those planning to rent out the property and generate a stable income.

Total expenses

On average, expenses when buying property range from 7 to 9% of the property value in Dubai. The main part consists of the registration fee and agent’s commission. With a mortgage, bank fees are added. Neglecting these items can lead to an increase in the budget and delays in processing.

Before proceeding with the transaction, it is advisable to create a budget — taking into account all payments, including mortgage fees, utility deposits, administrative fees, and legal services. This approach will help accurately understand the total cost of ownership.

Expenses when buying property in Dubai: conclusions

A full understanding of the cost structure when buying property in Dubai helps avoid unexpected expenses. Regardless of whether the transaction is made with personal funds or using a mortgage, the buyer faces mandatory commissions and fees. Every investor planning to invest in real estate must consider both direct and indirect expenses. Proper financial calculation is the key to a smooth transaction and effective asset ownership in one of the most stable markets in the Middle East.

August 26, 2025