Purchase procedure
Real estate in Dubai is one of the most prestigious addresses in the world.
When investing in real estate in Dubai (United Arab Emirates), you can choose properties that are not yet available in addition to already completed projects. The value of real estate grows during construction and can therefore be an interesting investment opportunity.
We offer for sale various types of real estate for your own use or as an investment for further rental – standard apartments, hotel condominiums, real estate by the beach and more.
You can choose from projects under construction or from already completed properties
Buying property in Dubai
A citizen of the Czech Republic can buy real estate in most areas of Dubai directly without legislative restrictions. I only include these freely available properties in my offer of real estates for sale. However, the purchase can only be made to a natural person (not a legal entity).
The offer of real estate in Dubai is extremely wide. Based on a mutual agreement, I will prepare suitable real estate offers for you according to your requirements and priorities. If your goal is to buy real estate for your own home, I will recommend suitable locations. If you want to focus on the highest rental income, I will select the most interesting projects for you in terms of investment.
If you decide to buy a specific property, the next step is as follows:
- The buyer makes an offer to the seller to buy the property and at the same time pays a blocking fee in the amount of approximately 5,000 to 25,000 AED. This fee is used to block the property from sale. In the event that the buyer withdraws from the purchase, this fee is non-refundable. ???
- Signing of the reservation contract and operating conditions – can be signed in the Czech Republic.
- Immediately after signing the reservation contract, the buyer will pay the first instalment of the purchase price (in the amount according to the state of construction) and at the same time pay the registration and administrative fees.
- Approximately one month after the signing of the reservation contract, the purchase contract is signed and registered with the Dubai Land Department (DLD).
- If the property is intended for further lease, the buyer signs a lease agreement with the operator together with the purchase agreement.
- Payment of the purchase price takes place in the AED according to the set payment schedule (according to the stage of construction).
- After completing the property and paying the full purchase price, the buyer will be asked to take over the property, the buyer will receive a title and become the owner of the property. Taxes and fees.
In Dubai, there is no tax burden on the purchase of real estate, however, these taxes replace various administrative and registration fees. Please note that these fees may change from time to time and the buyer is bound by the fees stated in the purchase contract, or valid on the date of delivery.
The buyer pays the following fees:
- Registration fees in favor of Dubai Land Department (DLD): 4% of the total purchase price.
- Fees for registration of a long-term lease (in case of further lease of real estate): 4% of the total value of the lease.
- Additional administrative and registration fees: approx. 2,000 AED.
- Real estate commission: Napata Group s.r.o. for most new real estate projects in Dubai, it does not charge the buyer any real estate commission as it directly represents the developer.
- In the case of realization of income (for example rental income) in the UAE, the following tax conditions apply to citizens of the Czech Republic:
- In accordance with the Income Tax Act, a resident of the Czech Republic is obliged to declare his worldwide income for taxation in the Czech Republic. This is also made possible by the double taxation agreement between the Czech Republic and the UAE. The agreement stipulates the method of eliminating double taxation as a simple credit.
- In accordance with § 38f par. 3) revenues can be reduced by expenditures according to Czech law, ie it is possible to proceed according to § 9 par. 4 (lump sum expenditures 30%, but maximum 600 thousand CZK), or according to § 24 eg depreciation of assets).
