In Dubai you can sell your off-plan home before it is handed over. It is called a resale, assignment or flip: the buyer takes over your contract, pays you what you have paid plus the price difference and carries on paying the developer. You need the developer’s NOC, and the DLD registers the change of owner in Oqood. Conditions such as the minimum share paid or the NOC fee depend on each developer, and we confirm them for each project.
In this guide8 sections
| Step | What happens | Who does it |
|---|---|---|
| Review the SPA | Check the resale clause and what you have paid | You, with us |
| Price and list | Agency contract and DLD advert permit | The agency |
| Agree with the buyer | Sale contract in the DLD system | Seller and buyer |
| NOC | The developer confirms you are up to date and approves the sale | The developer |
| Registration | The DLD moves the unit to the buyer in Oqood | DLD trustee office |
| Payment | You receive what you paid plus the difference | The buyer |
Can you sell before handover?
Yes. Dubai law allows it and regulates it. Law No. 13 of 2008 requires every sale of an off-plan unit to be recorded in the DLD’s interim register, including when the person who bought from the developer sells it on. The register is the same Oqood done when you bought, and on a resale the DLD changes the owner.
In a resale you are not selling bricks, you are selling your contract. The buyer steps into your place in the SPA: they pay you what you have paid the developer plus the agreed price difference, and from then on they pay the remaining instalments.
What the developer requires
The key piece is the NOC, the no objection certificate. The developer issues it once it checks you are up to date with payments, and without it the DLD will not register the sale. The DLD receives it from the developer electronically.
The other conditions are set by each developer in its SPA:
- The share of the price you must have paid before you can resell.
- The NOC fee.
- Whether you must wait for a construction stage or a date.
- Whether the payment plan passes to the buyer as it is.
It depends on each developer and we confirm it for each project, before you buy if you already plan to resell and again when you decide to sell.
Step by step
1. Review your contract and what you have paid
Ask the developer for your statement of account and read the resale clause in the SPA. That tells you whether you meet the conditions and how much the buyer will need to pay you.
2. Set the price and list
We price the home using recent sales of similar units in the area, which you can see in DLD data. To advertise, the agency signs Form A with you in the DLD system and obtains the advert permit.
3. Sign with the buyer
Once you agree, buyer and seller sign Form F, the MOU or sale agreement in the DLD system, with the price, timings and deposit. If the buyer has their own agency, it signs Form B with them.
4. Request the NOC
With Form F signed, the NOC is requested from the developer, which checks your account and charges its fee.
5. Register the sale
The sale closes at a DLD trustee office. There the buyer pays you, the fees are settled and the DLD moves the unit to their name in Oqood.
What reselling costs
These are the costs of an off-plan resale:
- DLD fee. 4% of the resale price. Who pays is agreed in Form F, and it is usually the buyer.
- Trustee office. AED 4,000 plus VAT if the price is AED 500,000 or more, and AED 2,000 plus VAT below that.
- NOC. The fee is set by each developer.
- Agency. The commission is agreed in Form A.
An example with a home bought for AED 1,000,000, 30% paid and resold for AED 1,100,000:
| Item | AED | € | $ |
|---|---|---|---|
| Purchase price from the developer | AED 1,000,000 | €242,384 | $272,294 |
| Paid to the developer, 30% | AED 300,000 | €72,715 | $81,688 |
| Resale price | AED 1,100,000 | €266,622 | $299,523 |
| The buyer pays you what you paid plus the difference | AED 400,000 | €96,954 | $108,918 |
| The buyer takes over the balance with the developer | AED 700,000 | €169,669 | $190,606 |
| Trustee office, AED 4,000 plus VAT | AED 4,200 | €1,018 | $1,144 |
| DLD fee, 4% of the resale price | AED 44,000 | €10,665 | $11,981 |
Approximate figures, for illustration only.
The price you can resell at depends on the market at the time. To see how much you have paid at each stage of your plan, use the off-plan calculator.
Selling from outside Dubai
You do not need to travel. The agency signs with you electronically, and to sign the registration on your behalf you can give a power of attorney to someone you trust. As the UAE is not party to the Apostille Convention, a power of attorney signed abroad is legalised in a chain: notary, your country’s Ministry of Foreign Affairs, the UAE embassy in your country and the UAE Ministry of Foreign Affairs. Ask the trustee office beforehand whether it will also need a legal Arabic translation.
The sale proceeds reach you by transfer in dirhams. You can receive them in a UAE account or in one at home.
What you declare at home when you sell
The UAE has no personal income tax, so the gain on reselling a home in your own name is not taxed in Dubai. If you bought through a company, Corporate Tax may apply. What matters is where you are tax resident:
Selling from the UK
If you are UK resident, you pay Capital Gains Tax on gains from overseas assets, so the profit goes on your Self Assessment return.
Selling from the US
US citizens and residents report their worldwide income to the IRS, so the gain goes on your federal return. If you are paid into a UAE account and your foreign accounts add up to more than $10,000, you also file an FBAR. The dirham is pegged to the dollar, so the exchange rate is stable.
From anywhere else
The steps in Dubai are the same. Check with your adviser how your country taxes the sale of an asset abroad. The basics are in the guide to Dubai property tax.
Things to keep in mind
- Read the resale clause before buying if you already plan to sell.
- Check the minimum share paid your developer requires.
- Stay up to date with payments: without that there is no NOC.
- Price with real sales in the area.
- Agree in Form F who pays the 4% DLD fee.
- Get paid and register the sale at a DLD trustee office.
- Keep the paperwork for your tax return at home.
We stay with you through the whole resale: we review your contract, price the home with area data, find a buyer, request the NOC and coordinate the registration, also if you are outside Dubai.
Frequently asked questions
Can I sell my off-plan home before handover?
Yes, with the developer’s NOC. The DLD registers the change of owner in Oqood. Conditions depend on each developer and we confirm them for each project.
What is the NOC for selling off-plan before handover?
The certificate in which the developer states it does not object to the sale and confirms you are up to date with payments. Without it, the DLD will not register the resale. Each developer sets its own fee and conditions.
How much does an off-plan resale cost?
The 4% DLD fee on the price, usually paid by the buyer, AED 4,000 plus VAT at the trustee office from AED 500,000, the NOC fee and the agency commission.
Do I pay tax in Dubai when I resell?
No. The UAE has no personal income tax. Your country of tax residence may tax the gain.
What do I declare in the UK if I sell in Dubai?
The gain for Capital Gains Tax on your Self Assessment return, as UK residents pay it on overseas assets.
What do I declare in the US if I sell in Dubai?
The gain on your federal return to the IRS, and an FBAR if your foreign accounts exceed $10,000.
