SHI—RE · Good to know
Good to know
How deals, mortgages and company setup actually work in the UAE – in plain steps, with what to prepare. New topics are added as they come up.
01ResaleHow a resale deal runs
Six steps from the offer to the new title deed, and what each side prepares.
Six steps from the offer to the new title deed. We take the paperwork, the bank and the trustee office.
- 01
Terms agreed
Buyer and seller agree the price, timing and who pays which fees.
- 02
Form F and deposit
The MOU is signed by all parties; the buyer gives a 10% security deposit cheque.
- 03
Mortgage, if needed
Pre-approval, valuation and the bank's final offer.
- 04
Developer NOC
The seller requests the NOC; a mortgaged seller also gets the bank's liability letter.
- 05
Trustee office booked
We book the appointment and prepare the manager's cheques.
- 06
Transfer
DLD issues the new title deed; commissions are paid.
What to prepare
From the seller
- Title deed or Oqood
- Passport and Emirates ID
- Phone and email
- Sale price and commission
- Amount paid and outstanding, if mortgaged or off-plan
- Power of attorney, if any
From the buyer
- Passport and Emirates ID
- Phone and email
- Property details: price, area, bedrooms, rented or vacant
- Proof of funds or mortgage pre-approval
- Power of attorney, if any
On transfer day
- Manager's cheque for the seller
- DLD 4% and trustee fee (card or manager's cheque)
- Agency commission + 5% VAT
- Keys and access cards from the seller
02CostsWhat a resale purchase costs
Plan for about 6-8% of the price on top of the down payment.
On top of the down payment, plan for about 6-8% of the price. Here is every line for a typical deal – and who sets it.
Where the money goes
- 01
Down payment
Your own funds. For a first property at least 20% below AED 5M, 30% from AED 5M to AED 7M and 40% above AED 7M; for an additional property or a non-resident at least 40%. It cannot come from a personal loan.
- 02
DLD transfer fee
4% of the price, paid to Dubai Land Department at the transfer. Usually the buyer pays it; Form F says who.
- 03
Trustee office and title deed
A fixed fee for the transfer appointment and small DLD charges for the new title deed.
- 04
Agency commission
Usually 2% of the price plus 5% VAT, agreed in Form F.
- 05
Bank and mortgage fees
Processing fee, property valuation and mortgage registration at DLD. Only with a mortgage.
- 06
Insurance
Life insurance for the loan and usually property insurance. Priced by the bank and added to the monthly cost.
Example: AED 2,000,000 apartment, 80% mortgage
Loan AED 1,600,000 · down payment AED 400,000 not included
- DLD transfer fee, 4% of the price
- AED 80,000
- Title deed fees
- AED 520
- Trustee office, incl. VAT
- AED 4,200
- Agency commission 2% + VAT
- AED 42,000
- Mortgage registration, 0.25% of the loan + AED 250
- AED 4,250
- Bank processing fee, 1% of the loan + VAT
- AED 16,800
- Property valuation
- AED 3,150
- Purchase costs
- AED 150,920
Indicative figures from our calculators. Bank fees differ by lender; insurance and service charges are not included.
03Off-planOff-plan or ready: what changes for the buyer
Off-plan is paid in stages and mortgaged only at handover; a ready home transfers at once.
The same apartment can be bought before or after completion. The difference is in how you pay, when a bank can step in and when the title deed is yours.
How an off-plan purchase runs
- 01
Reservation
You choose the unit and pay the booking amount set by the developer.
- 02
Sale and purchase agreement
The SPA fixes the price, the payment plan and the expected completion date.
- 03
Oqood registration
The developer registers your purchase with DLD in the interim register. The 4% DLD fee is paid at this stage.
- 04
Payment plan
Instalments go to the project's escrow account as construction progresses. Banks don't finance these stage payments.
- 05
Handover
On completion you pay the final instalment – from your own funds or with a mortgage – inspect the unit and get the keys.
- 06
Title deed
Once the price is paid in full, the Oqood is replaced by a title deed in your name.
Off-plan vs ready
| Off-plan | Ready | |
|---|---|---|
| Who you buy from | The developer | The owner, or the developer for finished stock |
| How you pay | Instalments during construction | In full at the transfer |
| Registration | Oqood, then the title deed | Title deed at the transfer |
| Mortgage | Only for the handover payment | At purchase, up to the bank's limit |
| Rental income | After handover | From the first tenant |
| Selling on | Before completion only with the developer's consent | Any time, with the developer's NOC |
Payment plans, resale conditions and fees vary by developer and project – we check them in the SPA before you sign.
04MortgageHow much can I borrow
Three limits set the loan: the share of the property value, your income and your age.
The bank applies three limits at once. The lowest of them sets your loan – so it is worth checking all three before you choose a property.
- 01
Share of the value (LTV)
The loan is a share of the price or the bank's valuation, whichever is lower. It depends on the price, your residency and whether it is your first property.
- 02
Debt burden (DBR)
All monthly debt payments, the new mortgage included, must stay within 50% of your income. Credit cards count even unused – usually 5% of the limit.
- 03
Age and term
The longest term is 25 years. Expats, employed and self-employed alike, usually have to repay the loan by 65; UAE nationals by 70.
Loan limits in our calculators
| Situation | Max loan | Min down payment |
|---|---|---|
| Resident, first property below AED 5M | 80% | 20% |
| Resident, first property AED 5-7M | 70% | 30% |
| Resident, first property above AED 7M | 60% | 40% |
| Second property | 60% | 40% |
| Non-resident | 60% | 40% |
| Equity release, ready property | 60% | – |
The planning assumptions behind our calculators. Each bank applies its own policy within the Central Bank rules.
Example: AED 2,000,000 apartment, resident
| Loan, 80% of the price | AED 1,600,000 |
|---|---|
| Term and rate | 25 years · 3.99% |
| Monthly payment | AED 8,437 |
| Monthly income needed, with no other debts | AED 16,874 |
Indicative figures. The income line is the payment doubled – the 50% debt burden limit.
05MortgageHow a mortgage gets approved
Four to seven weeks from the first documents to the keys – and the pre-approval comes first.
From the first documents to the keys in about 4-7 weeks. The pre-approval comes first – it tells you your budget before you make an offer.
- 01
Budget and documents
We check your income, debts and down payment and collect the documents in the format each bank expects.
- 02
Pre-approval
The bank confirms how much it is ready to lend. It usually takes about a week and is valid for about 60 days.
- 03
Offer and Form F
With the pre-approval in hand you agree the price and sign Form F with the seller.
- 04
Valuation
The bank sends a valuer to confirm the property is worth the price. The loan is based on the lower of price and valuation.
- 05
Final offer letter
The bank issues the final offer with the rate, term and conditions. You sign it and the security cheque.
- 06
Transfer and registration
At the trustee office the bank pays the seller, DLD registers the mortgage and you get the keys.
Documents the bank asks for
Salaried resident
- Passport, visa and Emirates ID
- Salary certificate addressed to the bank
- Six months of bank statements
- Six months of payslips
- Tenancy contract or utility bill
Self-employed
- Passport, visa and Emirates ID
- Trade licence and MOA
- Company and personal bank statements, usually 6-12 months
- Audited accounts, where available
Non-resident
- Passport
- Bank statements and proof of income
- Credit report from your home country
- At least 40% down payment
06MortgageFixed or variable rate
A fixed rate holds for 1-5 years, then the loan follows EIBOR plus the bank's margin.
Most UAE mortgages start with a fixed rate and later switch to a variable one. What you pay after the fixed period matters as much as the rate in the advert.
- 01
Fixed rate
The rate is locked, usually for 1 to 5 years. The payment stays the same whatever the market does.
- 02
Variable rate
EIBOR plus the bank's margin, reset every 1, 3 or 6 months. The payment moves with the market.
- 03
What EIBOR is
The rate UAE banks lend to each other at. The dirham is pegged to the US dollar, so EIBOR usually follows US interest rates.
- 04
After the fixed period
The loan moves to EIBOR plus the margin written in your offer letter. This is the moment to compare a refinance.
- 05
Early settlement
Repaying or moving the loan early costs at most 1% of the outstanding amount, capped at AED 10,000 plus VAT.
Ask the bank before you sign
About the rate
- How long the fixed period lasts
- The margin over EIBOR after it
- Which EIBOR: 1, 3 or 6 months
- Whether there is a minimum rate
About the costs
- Processing fee and valuation
- Life and property insurance per month
- Early settlement fee
- Whether partial prepayments are free
07MortgagePaying the handover with a mortgage
The bank pays the final instalment to the developer; what you paid during construction counts as your share.
Construction instalments come from your own funds, but the final payment at handover can be financed. The bank looks at the value of the finished unit, not only at the amount due.
- 01
Handover notice
The developer confirms completion and the amount due. Ask for a statement of account.
- 02
Pre-approval
The bank checks your income and confirms how much it can lend.
- 03
Valuation
The bank values the finished unit. The loan limit is based on that value.
- 04
Loan limit
The same limits as for a purchase: up to 80% of the value below AED 5M, 70% from AED 5M to AED 7M and 60% above AED 7M, for an additional property or for a non-resident. What you already paid counts as your share.
- 05
Payment to the developer
The bank pays the developer, who issues a clearance and hands over the unit.
- 06
Title deed and keys
DLD issues the title deed with the bank's mortgage registered on it, and you get the keys.
Example: AED 2,000,000 apartment, 60% paid during construction
AED 800,000 due at handover · financed in full
- Mortgage registration, 0.25% of the loan + AED 250
- AED 2,250
- Bank processing fee, 1% of the loan + VAT
- AED 8,400
- Property valuation
- AED 3,150
- Bank and DLD costs
- AED 13,800
Indicative figures from our calculators. Developer charges at handover, such as service charges, are separate.
08Company setupMainland or free zone: how to choose
Mainland trades anywhere in the UAE; a free zone is quicker to start but mainly works outside the local market.
Both give 100% foreign ownership for most activities. The choice depends on where your clients are, whether you need an office and how many visas you plan.
Mainland vs free zone
| Mainland | Free zone | |
|---|---|---|
| Regulator | Department of Economy and Tourism (DET) | The free zone authority |
| Where you can trade | Anywhere in the UAE, including government contracts | Abroad and within the zones; the local UAE market has limits |
| Office | A registered lease in Ejari | A flexi desk or an office from the zone's packages |
| Visas | Depend on the office size | Set by the package you choose |
| Start-up cost | Government fees, the DET voucher and a yearly lease | One package price set by the zone |
We set up companies in Dubai Mainland and in the free zones IFZA, RAKEZ, SPC, Ajman Free Zone, DMCC, Meydan and SHAMS. The calculator shows prices for the first four, based on each zone's official rates; for DMCC, Meydan and SHAMS we send a quote.
When it fits
Mainland fits if
- Your clients are in the UAE
- You need a shop, office or warehouse in the city
- You plan government or large corporate contracts
- You will hire staff over time
A free zone fits if
- You work mostly with clients abroad
- You need a licence and a visa quickly
- A flexi desk is enough
- You want one fixed yearly package
09Company setupSetting up a Mainland company, step by step
Usually 2-4 weeks from choosing the activities to the establishment card.
A Dubai Mainland licence usually takes 2-4 weeks. Most steps can start from abroad; the owners sign the MOA in person.
- 01
Activity and legal form
We match your business to DET activities and choose the form: sole establishment or LLC with partners.
- 02
Initial Approval
DET confirms the owners and activities can be licensed.
- 03
Trade Name
The company name is reserved. A standard name costs less than a special one.
- 04
MOA
The memorandum of association is prepared with the beneficiary details and signed by the owners.
- 05
Office and Ejari
A registered office lease. 5% of the yearly rent becomes part of the licence voucher.
- 06
Licence
DET issues the licence voucher; once paid, the trade licence is issued.
- 07
Establishment card
The company's immigration file. It completes the setup and is needed before any visa.
Fees known before the licence voucher
Government and service centre fees, as in our Consulting calculator
- Initial Approval (DET)
- AED 120
- Trade Name (DET), standard name
- AED 620
- MOA and beneficiary details
- AED 250
- Service centre, 4 submissions incl. VAT
- AED 462
- Establishment card (immigration file)
- AED 480
- Known fees so far
- AED 1,932
The DET licence voucher comes on top: on average about AED 14,000 for a single owner and AED 15,000 with partners, plus 5% of the yearly rent. Visas are separate.
What to prepare
From every owner
- Passport copy
- Emirates ID or UAE entry record (Unified Number)
- Phone and email
About the business
- Activities you plan to carry out
- Company name options
- Partners and their shares
- Declared share capital
For the licence
- Office lease registered in Ejari
- Annual rent amount
10ResidencyPartner visa through your company, step by step
Once the establishment card is ready: entry permit, medical test, Emirates ID and the visa itself.
Owners of a UAE company can get a residence visa through it – and then sponsor their family.
- 01
Establishment card
The company's immigration file. It must be open before any visa is applied for.
- 02
Entry permit
Applied for whether you are abroad or already in the UAE; inside the country a change of status is added.
- 03
Medical test
A standard test at an approved centre, for applicants aged 18 and over.
- 04
Emirates ID
Registration and biometrics: fingerprints and a photo.
- 05
Residence visa
The visa is issued and linked to your Emirates ID. After that you can sponsor your family.
Government and service centre fees, applicant abroad
Dubai Mainland, as in our Consulting calculator
- Entry permit
- AED 476
- Medical test, standard
- AED 325
- Residence visa
- AED 510
- Emirates ID
- AED 547
- Government fees
- AED 1,858
Already in the UAE: AED 3,184 in total, with the in-country permit and the change of status. Our service fee and health insurance are separate.