Tips and advice for purchasing in UAE (including Dubai)
Do your research early
Find out how the buying process works before you even go and have a look at properties. The process of buying in the UAE is significantly different to that in the UK so don’t assume that things will work in the same way.
Look into the finances early
Work out your budget. Look at the total cost of buying including legal fees, taxes and so on. Identify how much of a deposit you are likely to need and when that is payable. If you need finance to help fund the property look into this as soon as possible.
Do not try and cut corners to save money
It is likely to cause you a problem in the future. If there is a problem with the property it is better to find out before you buy as solving problems afterwards can be much more expensive. Not obtaining a survey or a valuation or cutting corners with legal fees is very short sighted.
Think about why you are buying and be honest with yourself
A property for personal use is often very different from a property that you would rent out, which in turn is often very different from a retirement property.
If you are buying for an investment do your research and be realistic about the amount of income that you can get from the property
Do not believe the sales hype in relation to number of weeks rental or money per week – carry out your own investigations into the true figures.
Think about exit strategy when you buy
If you are likely to want to sell the property in the future then think about who is going to want to buy your property from you and how marketable it is likely to be. Just because you like it doesn’t mean that other people will.
Think about inheritance at this stage
The laws on inheritance in the UAE are likely to be very different to those that you are used to as Sharia Law applies to assets in the UAE. Make a Will prepared and registered according to UAE Laws to make sure that your wishes are followed.
Still think about tax
One of the advantages of buying in the UAE is the considerable tax advantages. However, unless you are tax resident in the UAE you will probably still have to pay tax in your “home country” on any income, capital gains or inheritance. It therefore makes sense to think about taxes even when buying in the UAE
Take advice on who should own the property before you buy
Although the UAE is advantageous as far as tax is concerned you may still be The form of ownership is probably the most important decision that you will make when it comes to the property and has a major effect on taxes and inheritance. Taking advice now can save you thousands of pounds (if not tens of thousands of pounds) later on. Once you have completed many of your opportunities are lost.
Use an independent lawyer to help you buy your property
Do not use the lawyer who is acting for the seller, use one who is interested only in protecting your position. Make sure that your lawyer understands both UAE law and also the law of your home country as there is an interaction between the two jurisdictions in terms of taxes and inheritance.
This information has been kindly provided by Peter Esders of Judicare – E-Mail: email@example.com and quote SLC/LSP