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Frequently Asked Questions

Dubai • Abu Dhabi • Sharjah • Ajman

Questions About Oxygen Property

Oxygen Property market offers exceptional transparency and attractive returns on investment (ROI), making it a prime choice for buyers and investors. Key benefits include: – Tax-free income opportunities. – World-class infrastructure and diverse economic sectors. – Property income levels comparable to major cities like London and New York. – High living standards and superb living conditions. – A safe and secure environment ideal for families.

The property buying process typically involves the following steps:

1. **Finalizing the Sale Agreement**: The buyer and seller agree on and sign a sale agreement. This agreement includes:
– Purchase price.
– Additional costs such as agency fees, DLD transfer fees, developer fees, and service charge refunds.
– The transfer date at the Dubai Land Department (DLD).
– Payment terms. 
– Responsibilities and penalties for non-compliance with the agreement.

2. **Signing the Memorandum of Understanding (MoU)**: Both parties sign the MoU, a sample of which is available on the Dubai Land Department’s website. The buyer pays 10% of the purchase price upon signing the MoU.

3. **Obtaining a No Objection Certificate (NOC)**: The buyer applies for and pays for an NOC from the real estate developer. This certificate is required to transfer ownership and allows the buyer to proceed with the purchase. The NOC is issued once all service charges have been paid.

4. **Finalizing Ownership Transfer**: After receiving the NOC, the buyer meets with the developer or seller at the Dubai Land Department to obtain the new title deed. The buyer makes the remaining payment via cheque and receives the title deed, confirming their legal ownership of the property.

This is a frequently asked question in real estate. In the UAE, which is tax-free, you won’t have to pay taxes on your property. However, as a property owner, you will need to cover annual maintenance and service charges. These payments can be made from once to four times a year, depending on the property.

Value-Added Tax (VAT) is applicable to commercial property sales at a rate of 5%. However, VAT does not apply to:

– Sales or leases of residential property 
– Leases of commercial property

Freehold property grants buyers full ownership of both the building and the land it sits on. Owners have complete control, allowing them to retain, lease, or sell the property as they wish, in accordance with local regulations. This type of ownership is designed to attract foreign investment.
Until 2006, full foreign ownership of property in Dubai was not permitted. However, recent regulations now allow foreigners to own 100% of property. Today, you can fully own property in designated freehold areas like Al Furjan and Palm Jumeirah.
Yes, you can rent out your property in Dubai. The rental income varies based on property type, location, and service charges. Typically, the annual net income (total income minus service charges) ranges from 5% to 10%. Note that more expensive properties generally yield a lower rental percentage, while less expensive properties tend to offer higher returns.
While it’s possible to close a real estate deal without an agent, having one from the beginning is highly recommended. Real estate agents bring valuable, up-to-date market knowledge and expertise, helping buyers, property owners, and tenants secure the best deals. Their skills in negotiation and closing can ensure you get the most favorable terms.
At Oxygen Property, we excel in leasing and property management, dedicated to building lasting client relationships. Your property, our priority.

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