How to Transfer Money to Buy Property in Dubai, Legally

For most of my clients, paying for a Dubai apartment means sending the largest sum they've ever moved in one go. Mistakes at this stage are expensive. Account details get mistyped, money goes to the wrong party, or a bank starts asking about the source of funds the day before transfer. In this guide I'll cover the legal, transparent ways to pay and where the money should actually end up. I won't be covering workarounds for restrictions, because they put your money and the deal itself at risk.

Money follows the transaction

Where you pay depends on what you're buying.

I'll go through each of these below.

Off-plan: the project escrow account and nothing else

Dubai Law No. 8 of 2007 ↗ defines an escrow account as the project's bank account into which off-plan buyers' payments are deposited. It's opened with an accredited escrow agent in the project's name, and the money in it can only be used to build that project.

In practice, a few rules follow from this.

• Pay to the escrow account of your specific project. A general company account or an intermediary's account is the wrong destination.
• The Dubai REST ↗ app shows whether a project has an escrow account, through its project status service.
• Check the invoice details against the developer's records. If an email tells you the bank details have changed, call the developer on the number published on its official website rather than any number in the email.

The payment itself is an ordinary bank transfer. Ask the developer early whether it can come from abroad and in which currency. I explain how to check the account in my escrow account guide.

Resale: paying on transfer day

With a resale property, ownership passes at a DLD Real Estate Registration Trustee office, and the money changes hands there as well.

For the fees, DLD lists ↗ ePay, Dubai Pay, Noqodi Wallet and Manager Cheque as payment methods. The sale registration fee is 2% of the value from the buyer and 2% from the seller, with fixed fees on top. Non-residents can show a passport instead of an Emirates ID.

Manager's cheques

A manager's cheque is issued by the bank in its own name, funded with your money. The seller is handed it as the transfer documents are signed, so the money and the title move at the same time.

When the seller still has a mortgage, the payment is split. DLD ↗ requires three manager's cheques:

1. to the bank (or developer) for the seller's outstanding debt;
2. to the seller for any balance left over;
3. to DLD for the 4% fee.

There's more on this in safe payment: manager's cheques and conveyancing.

No UAE bank account?

Manager's cheques are drawn on a UAE bank, so the funds need to be in the UAE. You have two options.

• Open a UAE bank account. Some banks open accounts for non-residents. Documents, currencies and timelines differ from bank to bank, so check the bank's own website.
• Use a conveyancing company. You send the funds to the company. It issues the manager's cheques to the seller and for the fees, and prepares the paperwork for transfer.

From my practice. A non-resident family with no UAE bank account was buying a 2BR at Address Residences, Dubai Creek Harbour. They wanted to wire the money directly to the seller before the transfer. I talked them out of it and suggested a conveyancing company. They sent the funds there, the company issued manager's cheques in the seller's name, and we went into the transfer with a clear and protected payment route.

Dubai Now: a fully online deal

For simple cases, DLD lets you buy and sell through Dubai Now ↗. There are limits. Only UAE ID holders can use it, and the unit has to be freehold with no mortgage or restriction on it. The price and fees are paid into a DLD-approved escrow account.

Banks and exchange houses: check the licence

Only send money through a bank or exchange company licensed by the Central Bank of the UAE. The CBUAE publishes a register of licensed banks and exchange companies ↗. Find the latest edition on centralbank.ae and check the name and licence number.

Things I ask clients not to do:

• give money to informal money changers or to anyone who promises "fast, no questions asked";
• pay into the account of a third party who isn't part of the deal;
• break payments into smaller amounts to stay under review thresholds. That attracts more questions.

Cash and crypto

Apartments in Dubai are rarely bought with cash, and I wouldn't recommend it. Two rules are worth knowing.

• Declaring at the border. According to ICP ↗, travellers over 18 must declare cash and equivalent instruments, as well as precious metals and stones, worth more than AED 60,000 or the equivalent in another currency. You declare through the Afseh system, online or in the app.
• Transaction reports. The UAE Financial Intelligence Unit ↗ refers to an AED 55,000 threshold for cash or crypto payments in real estate activities. Above it, market participants file specific reports.

A bank transfer is simpler. There's a record of who sent what to whom, and if questions ever come up, that record is on your side.

Currency, rates and fees

Dubai prices are in dirhams (AED), and your money may be held in another currency. It can be converted by your sending bank, by the receiving bank or by an exchange company, and each will have its own rate and fees.

Before sending, I'd find out:

• Who converts. Ask your bank which currency the payment leaves in and where it gets converted to dirhams.
• The rate and the fee. Get your bank to show you both before you confirm, and compare the final AED amount. A rate on its own tells you very little.
• Intermediary banks. On an international transfer, a bank along the route can take a fee. If the recipient has to receive an exact amount, send a margin on top or choose the option where the sender pays all charges.
• The recipient account's currency. An escrow or conveyancing account may only accept certain currencies, so confirm this in advance.

On a large sum the rate difference is noticeable. That's why I suggest a small test payment to the same details first. You'll see the route and the amount that actually arrives.

Source-of-funds documents

Large transfers get reviewed by UAE banks and by banks in the sending country. This is routine. Have these ready in advance:

• the sale or reservation agreement (the SPA, or on resale the MOU, which is Form F);
• the developer's invoice or the deal settlement breakdown;
• paperwork showing where the money comes from, such as the sale of another property, salary savings, dividends or a loan;
• bank statements.

Your bank will give you its exact list. Send the funds early. A transfer can be held for review, and developers and sellers work to their own deadlines.

If a mortgage covers part of the price, you'll be transferring less. The mortgage calculator shows the down payment and upfront costs. Non-residents may also want to read mortgages for non-residents.

Checklist before you send

1. You know who receives the money: the project escrow account, the conveyancing company or your own UAE account.
2. The account details have been confirmed through an official channel, not by email alone.
3. Your bank or exchange company appears on the CBUAE register.
4. The payment reference includes the project and unit, or the contract number.
5. Your source-of-funds documents are ready.
6. The transfer goes out with time to spare.
7. You've saved the transfer confirmation.

Quick recap

• Off-plan payments go only into the project escrow account.
• Resale is paid on transfer day, by manager's cheques or through conveyancing.
• Don't pay the seller directly before transfer.
• Use licensed banks and exchange companies only.
• Cash above AED 60,000 has to be declared, and a bank transfer is the better way to pay.
• Get your source-of-funds paperwork together early.

If you're buying from abroad and aren't sure how to set up the payments, message me on WhatsApp. I'll map out the money route for your deal, from reservation to transfer. You can read more about me and how I work on the about page.