Are you considering investing in real estate in Dubai from Canada?
Foreign buyers, led by Canadians, have great opportunities in Dubai’s attractive property market and growing economy.
However, what if you wanted to run this integration remotely?
How do you know what steps you need to take?
Let us help you.
Can Canadians purchase property in Dubai?
Yes, Canadians may purchase property in Dubai. In 2022, Dubai government opened the real estate market up for international investments, and many Canadians and other nationals began purchasing properties there ever since.
Canadian citizens may purchase freehold properties without special approvals or regulations in authorized areas without restrictions or permissions being needed for ownership of land-built-on, as per local zoning restrictions and can use it however desired within local regulations.
Reasons to Buy Property in Dubai
Are Canadians considering purchasing property in Dubai as investors worth it?
Let’s consider some benefits associated with investing in Dubai properties to assist with making an informed decision.
As a Canadian resident, buying property in Dubai is straightforward and transactions can usually be concluded relatively swiftly. No resident visa is needed in order to own property here.
Tax Advantages: Dubai stands out as an economically friendly hub due to its low taxes; individuals do not pay real estate income taxes in Dubai and there is no capital gains or estate tax levied by the Emirate.
Visa Provision: Dubai provides investor visas which allow investors to sponsor spouses and children as dependents; their residency visa can then be renewed every few months depending on your investment amount.
High Investment Potential: Dubai real estate holds immense investment potential for any savvy real estate investors, as its future appears bright. Politically secure and economically robust, Dubai is widely seen as an exceptional city to visit or live due to its melting pot of cultures and year-round warm temperatures – not forgetting affordable properties with excellent rental yields at great values for money!
Legal Framework
Dubai allows foreigners to own freehold property in certain designated areas without restriction of ownership rights.
Alternatively, the leasehold provides long term lease rights (up to a maximum of 99 years). Making informed decisions is always good, so familiarizing yourself with these options will help.
Types of Properties in Dubai
Dubai Property listings provide residents with a diverse range of apartments, villas, townhouses, condominiums and luxury housing properties ranging from apartments and townhouses through condominiums to luxury housing developments that will meet every lifestyle need and community development project available in Dubai.
As an expatriate or investor in Dubai, selecting an apartment should not prove difficult for you – with so many properties on offer you should find something suitable to both your budget and requirements. Properties often fall into three broad “types.”
- Freehold Properties: Freehold properties offer many benefits over other forms of ownership; in particular, full ownership gives owners full control to sell, rent out or inherit without state approval.
- Commonhold properties: These are units within a large building with communal areas and services that offer similar rights as freehold properties, but typically managed by an estate agency who charges service fees to manage them.
- Usufruct Properties: Usufruct properties involve long-term lease arrangements of as much as 99 years that allow users to utilize and benefit from them while ownership remains with another individual or party.
Steps to Buying Property from Canada
Real estate investment in Dubai from Canada goes through multiple steps. Whether an apartment or a commercial building, you can buy anything through this step-by-step guide:
Step 1 – Search and Select Property
Select an area within Dubai that best satisfies both your investment and lifestyle objectives, such as Downtown Dubai, Dubai Marina or Palm Jumeirah. Once selected, decide upon an apartment complex, villa or commercial property within your budget that matches them up perfectly.
Step 2 – Engage a real estate agent
Hire a licensed real estate agent with foreign buyer expertise in Dubai who can assist in finding suitable properties, negotiating prices and meeting legal requirements. Although visiting Dubai to see properties is ideal, virtual tours can also be organized if that proves impractical.
Step 3 – Go through Legal Requirements
Dubai allows foreign nationals to buy property within designated freehold areas, so ensure the property of interest falls into one. Depending on its type, a valid passport, proof of address document and possibly visa or residency document may be needed in order to complete your purchase of property there.
Step 4 – Pay the Deposit
Once you find your ideal property, submit an offer through your agent and accept. When accepting, a deposit payment should be made – usually around 10% of its value.
Step 5 – Consult a Lawyer and Perform Due Diligence
Engaging a lawyer from Dubai to review your sale-purchase agreement and confirm title to property, ensure no outstanding liabilities exist, verify the seller has legal right to sell as well as ensure all legal requirements have been satisfied is essential in achieving successful outcomes.
Step 6 – Complete your purchase
Sign the Sale and Purchase Agreement (SPA) before a notary public either in Dubai or through power of attorney. After completion, ownership transfer takes place at Dubai Land Department where any outstanding payments must be made before being awarded the property title deed in your name.
Step 7 – Post Purchase Considerations
If you don’t plan to live full-time in your property, hiring a property management firm to oversee maintenance, rentals and other responsibilities could be wise. Be mindful of ongoing costs like service charges, maintenance fees and property taxes before making this decision.
Financing Options
- Mortgages: Some banks in Dubai are able to offer mortgages to Canadian buyers. For non residents, down payments begin at 25%.
- Currency Considerations: When sending funds abroad, think of exchanging rates and transfer fees.
Suggestions for Best Projects for Canadian Buyers (2024)
- Emaar Beachfront
- Damac Lagoons
- Sobha Hartland 2
- Dubai Creek Harbour
Property Management and the Maintenance of Property
International owners are advised to hire services of a property management firm. As with other cities in Dubai, annual maintenance charges differ and are one of the most important things to keep in mind when investing in the city.
Tax Considerations
While Canadians are taxed on worldwide income, Dubai offers significant tax benefits: And none of the types of capital gains, inheritance tax, or property tax. For cross border considerations it’s important to consult a tax advisor.
Conclusion
Investing in Dubai real estate from Canada is an excellent investment if you have the best guide. Dubai is a good place to find both homes to vacation in and ones to rent out for income, and either way you should be looking to grow and reap returns.
