TME Legal
Tenancy and Real Estate Law in Dubai
Real Estate Law in Dubai: We advise you on the purchase, sale & rental of your properties – legally sound & competent.
The real estate market in Dubai is one of the world’s most attractive investment locations, as it offers companies, investors, and private investors a wide range of different properties – from modern office properties and stylish apartments to exclusive luxury villas.
Despite this attractiveness, the United Arab Emirates has decided to establish a closely-knit, transparent regulatory framework that covers all aspects related to the acquisition, sale, rental, and management of real estate. Without sound knowledge of real estate law in Dubai and expert legal advice, legal and financial risks are difficult to assess and avoid.
TME Legal is therefore your ideal local contact. As a German-speaking law firm, we competently guide you through the entire transaction process – from initial due diligence to final transfer of ownership. We always offer you legally sound advice on real estate and rental law in Dubai.
Our Advisory Services in Rental and Real Estate Law
We offer you sound legal advice and comprehensive support in all matters concerning your properties in Dubai.
Residential Property Law and Real Estate Transactions
In residential property law and real estate transactions in Dubai, legal precision is paramount. We therefore help you minimize risks, avoid pitfalls, and conduct your real estate transactions safely and successfully:
- Legal advice on the purchase, sale, and acquisition of apartments, villas, and land plots
- Examination of ownership rights, land registry entries, and existing encumbrances
- Conducting legal due diligence, contract negotiation, and notarial support
- Support with administrative procedures at the Dubai Land Department (DLD), including all permits
- Assistance with notary appointments and property transfers
- Ensuring compliance with local regulations and robust legal relationships
Tenancy Law Consulting
We support tenants and landlords in the legally sound structuring and enforcement of tenancy agreements in Dubai. Our advice specifically includes:
- Review and analysis of existing rental agreements for tenants and landlords
- Representation in rental disputes and conflict resolution
- Ensuring compliance with the regulations of the Real Estate Regulatory Agency (RERA)
Drafting of Rental and Purchase Agreements and Registration of Residential Rights
Precise and legally sound drafting of rental and purchase agreements is crucial to minimize legal and financial risks of real estate transactions in Dubai. We provide comprehensive support in:
- Preparation, review, and negotiation of rental and purchase agreements, including off-plan models
- Structuring of agreements with developers, brokers, service providers, as well as trust and escrow agreements
- Support with the registration of ownership and residential rights at the DLD and with trust administration
Legal and Tax Consultants
Our Expert Team
Clear answers
Frequently Asked Questions about
Rental and Real Estate Law in Dubai
What rights does a tenant have in Dubai?
Tenants in Dubai enjoy legally enshrined rights that protect them from excessive rent increases and ensure proper maintenance of the rented premises. Fundamentally, there is a right to a written tenancy agreement that clearly regulates all agreements and obligations. The tenant’s obligations include the timely payment of rent and the careful use of the property.
How is rent paid in Dubai?
Rent payment in Dubai is usually made by bank checks or transfers. Many landlords still prefer payment by check, with rent often paid in several installments. In practice, up to four checks per year are common. The specific payment terms, including due dates and number of installments, are clearly defined in the contract.
Can foreigners acquire real estate in the UAE and do they receive full ownership rights?
Yes, foreign investors are entitled to acquire real estate in the UAE, particularly in designated freehold areas where full ownership rights are transferred. However, due to the complexity of the real estate market in Dubai, expert legal advice is essential to minimize both legal and financial risks.
What costs are associated with acquiring a property in the UAE?
In addition to the purchase price, additional costs are incurred, including transfer fees to the relevant authorities, brokerage fees for existing properties (an additional brokerage commission is often not applicable for off-plan properties), bank fees for mortgage financing, as well as administrative fees of the developer.
Does real estate acquisition enable a residence visa in the UAE?
Yes, under certain conditions, foreign investors can apply for a residence visa based on their property ownership. The duration of the visa depends on the value of the property and other criteria. For example, a real estate investment of AED 750,000 or more qualifies for a visa application, while an investment of AED 2,000,000 allows for a ten-year residence visa.
Can foreign owners rent out their properties in the UAE?
Yes, renting out by foreign owners is permitted. A prerequisite is opening a local bank account or authorizing a third party to receive rent payments. The power of attorney should be carefully prepared and notarized to ensure legal certainty.
What taxes or fees are incurred when selling a property in the UAE?
In the UAE, there is no classic capital gains tax. Nevertheless, fees arise during the sales process, including the transfer fee of 4% of the property value and administrative fees.
How is rental income from properties in the UAE treated in the owner's home country?
In the UAE, rental income is not subject to taxation. However, a tax liability may arise in the owner’s country of residence. We offer individual tax law advice to clarify the legal implications in your home country.
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