How non-residents pay for property in the UAE

How non-residents pay for property in the UAE

You do not need to live in the UAE to buy property here, but the payments work differently from a local purchase. You will pay through a mix of international transfers and manager's cheques, which sellers and developers ask for in dirhams. The practical challenge is converting your money to dirhams and producing those cheques without a slow local bank account. This guide walks through exactly how it works.

The detail that catches most non-residents out

A manager's cheque is a cheque guaranteed by a UAE bank and drawn on the bank's own funds, not yours, so it cannot bounce. Sellers, developers and the transfer appointment ask for one because it is treated as good as cleared cash.

The catch: UAE banks issue manager's cheques in dirhams only, never in a foreign currency. So even if your money sits in euros, pounds or dollars abroad, at the key moments in a purchase you need dirhams, in cheque form, drawn on a UAE account.

That single fact shapes the whole payment process for an overseas buyer. Everything below is about getting your funds into dirhams and into the right form at the right time.

When you actually pay, and how

The stages depend on whether you are buying off-plan from a developer or a ready property from an owner.

Buying off-plan - You pay a reservation deposit to book the unit, then follow the developer's payment plan in instalments, usually by transfer to the developer's account or by manager's cheque.

Buying a ready or resale property - You pay a reservation deposit on signing the sale agreement, commonly around 10 per cent, then the balance by manager's cheque at the transfer appointment, alongside the transfer fee and the agency commission.

Figures are typical market ranges, confirm the current amounts for your emirate and property before you budget.

Three ways a non-resident can make these payments

There are three practical routes, and they differ mainly in speed.

1. Open a UAE non-resident private client account - Possible, but slow. It commonly takes one to three weeks and usually requires a high minimum balance, from tens to hundreds of thousands of dirhams. Fine if you have time before completion.

2. Use a power of attorney - You appoint someone in the UAE to handle payments on your behalf. It works, but it adds cost and asks you to place trust in a third party for large sums.

3. Use a regulated payment service - You wire your funds once, they are converted to dirhams at a live rate, and the manager's cheques are issued on your behalf. This is the fastest route and the one most overseas buyers now use.

What you need, and how long it takes

Whichever route you choose, expect to provide your passport, proof of address, evidence of the source of your funds, and the reservation form or sale agreement.

Timing is the real difference. A local non-resident bank account can take one to three weeks to open. A regulated payment service can have you funded and issuing manager's cheques in 24 to 48 hours, with currency conversions settled the same or next business day. When a seller is holding a unit for you, that gap matters.

Costs to budget for

• Reservation deposit, commonly around 10 per cent on a resale

• Property transfer fee, around 4 per cent of the price

• Agency commission, around 2 per cent plus VAT

• Conveyancing, no-objection and cheque handling costs

Again, treat these as typical figures and confirm the current rates before committing.

How Hubpay helps non-resident buyers

Hubpay is the third route above, built for overseas buyers. Hubpay is a regulated electronic money institution, a regulated alternative to a traditional bank account, so you can pay for UAE property without opening a local bank account first.

• A non-resident dirham account opened in 24 to 48 hours, no UAE residency needed

• Wire in your own currency and convert at a live rate

• Manager's cheques arranged and delivered to your broker, developer or the transfer appointment, usually within 24 to 48 hours

• Your funds held in segregated, ring-fenced accounts with Tier-1 institutions

See how it works for non-resident property buyers, or read more about the manager's cheque service. For the full picture, visit Hubpay for Property.