Dubai’s free zones have long attracted entrepreneurs and professionals from around the world—offering 100% ownership, simplified licensing, and a streamlined path to a UAE residence visa. But for many foreign residents using a Free Zone Work Residence Visa, one question looms large:
Can you purchase property in Dubai while holding only a free zone visa?
The short answer: Yes—but there are important legal, financial, and practical considerations to keep in mind. Let’s explore in depth.
1. Understanding Dubai’s Visa Types and Real Estate Rights
1.1 The Free Zone Visa: What It Is (and Isn’t)
- Issued by a specific free zone authority
- Tied to operating a business or employment within that free zone
- Allows 100% foreign ownership of the business
- Validates legal residency—from 1 to 3 years, renewable
What it doesn’t do:
- Does not grant access to mainland employment authority like MOHRE/Immigration
- Doesn’t automatically confer ownership rights to mainland-only products
1.2 Mainland vs. Free Zone: Why It Matters for Property
The UAE is geographically and administratively split:
- Free Zones: Special economic zones with relaxed regulations
- Mainland: Governed by MOHRE, subject to general UAE labor and immigration laws
Real estate, however, falls under the Dubai Land Department (DLD) – which covers both free zone and mainland residents equally. This means:
- Free Zone visa holders are eligible to purchase property in designated zones
- The main barrier is financing, not ownership rights
2. Property Ownership Rights for Free Zone Visa Holders
Law: No Visa = No Property Restrictions
DLD regulations state:
“Any non-GCC resident with a valid UAE residence visa can purchase strata-title property in designated areas.”
Designated areas include freehold neighbourhoods—like Dubai Marina, Downtown, JBR, Palm Jumeirah, Business Bay, etc.
Free Zone visa holders qualify just like those holding mainland visas.
3. Mortgage Considerations for Free Zone Visa Holders
Owning property is straightforward — but financing requires more attention.
3.1 Eligibility
To qualify for a mortgage, you must meet:
- Minimum income thresholds
- Salary transfer or business income under appraisal
- Valid UAE residence permit
- Clean credit history
Free Zone visa holders often meet these if:
- They earn a legitimate salary through payroll (paid via UAE bank transfer)
- Or run a free zone company with verifiable profit and tax record.
3.2 Typical Mortgage Conditions
- Loan-to-Value (LTV): Up to 80% for first property, 60% if owner is over 55 or buying second property
- Tenure: 20 – 25 years, depending on visa expiration
- Interest Rates: Typically 3.00% – 4.50% over EIBOR; FRNs (fixed, floating rate notes) available
3.3 Mortgage Fees
- Processing fee: 1%–1.5% of loan amount
- Valuation: AED 2,500 – 3,500
- Mortgage registration: 0.25% of loan + admin
- Early repayment fee: 1% in first year
Free zone direct owners can finance—but performance depends on structured financial presence.
4. Step‑by‑Step How to Buy Property With a Free Zone Visa
Step 1: Confirm Visa Validity
Ensure your Free Zone residence permit is active for a minimum of 6 months (longest possible duration boosts financing eligibility).
Step 2: Check DLD Freehold Areas
Identify freehold property developments (e.g. Downtown, Dubai Marina, Dubai Hills, etc.). Avoid leasehold-variable communities like apartments in Deira Souq or Business Park.
Step 3: Choose Property & Sign MoU
A Memorandum of Understanding is signed between seller and buyer—usually with 10% deposit.
Step 4: Apply for Mortgage Approval (if needed)
Choose a bank, submit documents:
- Passport + Visa
- Emirates ID
- Salary slips or bank statements
- Financial audit (for company owners)
- Proof of free zone business licensing or work permit
Banks assess based on income-to-commitment ratios and visa validity.
Step 5: Final Sale Agreement & Transfer
- Pay balance
- Pay buyer’s costs: 4% DLD transfer, trustee fees (AED 4,000), admin, NOC, real estate commission (2% + VAT)
- Trustee office handles title deed registration
At this point you legally own the property and can reside or lease.
Step 6: Apply for Ejari & DEWA Connection
Ejari tenancy contract issued if renting out; DEWA/residence license if living in the property.
5. Owning Property without a Mortgage
Many free zone holders buy outright—with benefits:
Pros:
- No interest costs
- Faster, hassle-free purchase
- No bank scrutiny
Cons:
- Hefty upfront capital required
- Forfeit leverage and liquidity benefits of mortgage
Example:
Ana from Romania used savings to purchase a JLT studio for AED 550k—free of bank involvement—and lives in it with her spouse.
6. Renting, Residency, and Golden Visa Options
Once you own property, additional perks open up.
6.1 Renting Your Unit
- Long‑term rent: Ideal if you’re residing separately or using it as an income stream
- Short‑term AirBNB–style: Demands holiday home license from DED plus extra fees
6.2 Property‑Based Residency Visa (“Investor Visa”)
For properties valued at AED 750,000 and above, you can apply for a 3‑year investor visa.
- This is independent of your free zone visa
- Requires:
- Ejari tenancy contract
- Clean medical and Emirates ID
- Property ownership proof (title deed)
- Health insurance
Many buy multiple qualifying properties to convert temporary to permanent residency—without sponsorship.
6.3 Golden Visa Eligibility
Owning qualifying real estate, especially with business ties to free zones, can also support your path to a 10‑year Golden Visa — especially when paired with:
- Investor status (DMT advice)
- High‑income generation
- Golden Visa criteria (special talents, specialists, entrepreneurs)
7. Benefits & Drawbacks in a Nutshell
✅ Benefits
- 100% ownership rights in freehold zones
- Property-based residency separate from your free zone visa
- Access to mortgage options if income is verifiable
- Rental income on your own property
🚨 Drawbacks
- Mortgage path requires solid financial backing or income proof
- Expensive upfront fees (7–10% of property value)
- Ownership is regional (not mainland unless addressing renting permissions)
- Rentals (holiday or long-term) need adherence to regulations
8. Real-Life Scenarios of Free Zone Visa Holders Buying Property
Scenario 1: Freelancer with GoFreelance License
- Purchased in Al Barsha for AED 780k using bank financing
- Pays mortgage via bank‑verified annual declaration
- Lives there and rents part-time as Airbnb
Scenario 2: Tech Entrepreneur with DIC Visa
- Bought two units in Dubai Silicon Oasis
- Paid outright to DLD—no mortgage
- Plans for future capital appreciation
Scenario 3: Combo Visa (Free Zone + Investor)
- Owns property worth AED 1.2m
- Transferred to 3‑year investor visa after purchase
- Now plans to apply for 10‑year Golden Visa via business set up
9. Financing Structures & Expert Tips
Tip 1: Up Your Income Documentation
Provide salary slips, audited free zone accounts, invoices, and bank statements showing programmably regular income.
Tip 2: Lease Documentation Helps
Even if vacant, having rental contracts helps demonstrate business/income for mortgage.
Tip 3: Use Purchase Timing
Property awaiting handover often has cheaper prices—lower appraisal, but still mortgage eligible for resale/secondary market.
Tip 4: Speak to Mortgage Specialist
They can pre‑validate your eligibility before committing to MoU or MoA.
10. Frequently Asked Questions (FAQs)
Q1: Will my free zone visa limit me to renting only in freehold zones?
A1: No. You can own property anywhere within a freehold zone as defined by DLD regardless of visa type.
Q2: Can I transfer property if visa expires before property transfer?
A2: No. Valid residency is required at time of transfer—renew visa pre‑transfer or transfer after visa is renewed.
Q3: What happens if I cancel my free zone company or visa?
A3: You can continue owning the property—but to hold title or rent, maintaining some valid UAE residency is advisable.
Q4: Can a spouse or family member sponsor residency based on my property purchase?
A4: Yes. A property owner spouse can sponsor dependents if minimum property value meets DLD’s eligibility (often AED 750k).
11. Summary Table: Quick Comparison
| Aspect | Free Zone Visa Holder |
|---|---|
| Property Ownership | ✅ Allowed in freehold zones |
| Mortgage Access | ✅ Yes, with income documentation |
| Investor / Golden Visa | ✅ Possible from property purchase |
| Purchase Fees | ❌ ~7–10%, same as mainland visa holders |
| Residency Stability | ⚠️ Depends on visa/grants post-purchase |
12. Final Thoughts
Yes, you can buy property in Dubai with a free zone visa. It’s a powerful tool many overlook—allowing you to simultaneously:
- Maintain business operations via free zone
- Own, live in, or rent out Dubai property
- Build equity and long-term wealth
- Secure visa pathways including investor and golden visas
Ready to Own Your Slice of Dubai?
Book your free property purchase consultation with our trusted advisors. We’ll guide you from:
- Choosing the right neighborhood
- Financing & free zone structuring
- Title transfer and residency
- Long-term asset strategy
Let’s build your Dubai dream—one property at a time.