The real estate market in Dubai is one of the most sophisticated ones globally as it draws the attention of UAE citizens as well as foreign investors. Purchasing property in Dubai like Damac Riverside Property is a long-term investment and rewards like availing UAE golden visa. However, there are a lot of aspects to consider before making a purchase, as one of them involves taxation aspects. Property taxes in Dubai are more relaxed and refined in the world. The lucrative nature of the real estate sector in the city has been one of the founding pillars behind the robust economy of Dubai. Over the years with the growing infrastructure and business opportunities, there has been a validity to the evergreen demand of the city.
DLD FEE ( Dubai Land Department)
This fee is a one-time tax paid to the government calculated to be 4% of the value of the property in question. Moreover, if the property is purchased through a loan, then the buyer needs to pay an additional 0.25% of the total loan amount to DLD as well to register the mortgage against the property.
Registration fee
A registration fee needs to be paid by the buyer looking to purchase a housing project like the Damac Riverside Property. If the property value is less than 500,000 AED then the registration fee is 2000 AED. And if the property value is more than 500,000 AED then the registration fee is 4000 AED. The property must get registered 60 days of the purchased transaction, to avoid the risk of getting void.
Agents Fee
Purchasing any type of housing property in Dubai like Damac Riverside Property becomes relatively simpler and more convenient with assistance from a reliable agent. While there is no agent fee for off-plan properties, it is 2% of the property value for readymade properties.
Conveyance Fee
Upon using the conveyancer support and services, it ensures the protection of all parties involved in the purchase and sale of the property ensuring that all legal contracts and terms are maintained as per the UAE law. The amount here usually ranges from 6000 AED to 10,000 AED.
Mortgage Fees
If the property purchase takes place through a mortgage, then a bank mortgage arrangement fee of 1% along with the loan amount alongside a property valuation fee of AED 2,500 AED to 3500 AED. To ease the burden on buyers, several banks in Dubai allow them to add upfront costs to their mortgages. It also needs to be kept that if the seller has a mortgage registered then the buyer has to first pay out the mortgage from the seller to get NOC during the property transfer at DLD.
Housing Fee
A municipality fee or housing fee is a mandatory fee that serves as an annual charge for anyone in the city who owns or rents a residential property like Damac Riverside Property. Ideally, it is 5% of the annual rental fee of the property which can be paid in monthly installments which has to be paid by the tenants and homeowners.
Service Fee
There is an annual maintenance charge on a property that needs to be paid to the DLD which is based on Real Estate Regulation Agency Service Charge and Maintenance Index. This fee varies from community to community and calculates specific charge per Sq Ft. The amount is used for maintaining the community and calculates specific charge per sq ft.
Conclusion
Property tax in Dubai has been designed to facilitate the growth of the real estate market in the city. It supports transparent and safe transactional activities providing a conducive environment for the sector development. Moreover real estate market in Dubai has become a major contributing sector to the country’s economy.