New Rule for Overseas Property Sellers in Dubai: What You Need to Know in 2025
Why This New Regulation Matters for Foreign Property Owners
In a significant step toward increasing transparency and safeguarding real estate transactions, Dubai has introduced a new regulation for overseas investors selling property in the city. If you’re a foreign owner planning to sell property in Dubai, this update is essential — not just for legal compliance, but for ensuring smooth and secure transactions.
What Is the New Rule?
As of 2025, foreign property sellers in Dubai must ensure that proceeds from the sale are transferred only to their personal UAE bank account. This means:
- Funds cannot be transferred to a third-party account, even if that person has a Power of Attorney (PoA).
- The seller must open a UAE bank account in their own name before the transaction is completed.
This update is part of Dubai’s continuous efforts to protect buyers and sellers, and to maintain its position as one of the world’s most trusted and transparent property markets.
Who Does This Impact?
This rule affects:
- Overseas investors who own property in Dubai
- Real estate brokers and agents assisting foreign sellers
- Law firms and professionals involved in handling property transfers
- Buyers who want assurance that the deal is legally sound
Whether you’re an individual investor or part of a global portfolio management group, this change applies to all non-resident sellers.
When Was This Implemented?
This rule was officially announced in mid-2024 and has become mandatory from early 2025. Any property transaction by a foreign seller now requires strict adherence to this protocol to be approved by the Dubai Land Department.
Where Does It Apply?
The regulation is applicable across all freehold and leasehold areas in Dubai, including high-demand zones such as:
- Downtown Dubai
- Dubai Marina
- Business Bay
- Jumeirah Village Circle (JVC)
- Palm Jumeirah
- Dubai Hills Estate
Regardless of the property type — apartment, villa, townhouse, or commercial — the rule stands.
Why Was This Rule Introduced?
The primary reason behind this update is to enhance transparency, reduce fraud, and prevent misuse of Power of Attorney rights. In the past, some sellers would use PoAs to route large sums to third parties, making it difficult to track ownership or financial legitimacy.
By enforcing direct fund transfers to the seller’s own UAE bank account, the Dubai government aims to:
- Strengthen anti-money laundering (AML) practices
- Ensure legal accountability
- Provide clear audit trails
- Protect both local and international investors
This shift aligns Dubai with global best practices in real estate governance, especially important as the city continues to attract investors from Europe, Asia, and the Americas.
How to Comply: Steps for Foreign Sellers
Here’s what overseas property owners need to do:
- Open a personal bank account in the UAE
– Most local banks offer expat-friendly accounts with remote application options. - Update your sale documents to reflect your own account as the receiving beneficiary
- Avoid using PoA for financial transfers
– PoA can still be used for administrative tasks, but not for receiving sale proceeds. - Work with a registered real estate agent familiar with the new legal framework
- Consult a UAE-based legal advisor to ensure all paperwork is correct
Expert Insight: What Market Professionals Say
According to leading real estate consultants in Dubai:
“This move will increase buyer confidence and reduce risk for all stakeholders. It ensures funds go to the rightful owner, avoiding any ambiguity or misuse.”
Lawyers also believe this will lead to faster approvals by the Dubai Land Department and reduce disputes involving inherited or jointly-owned properties.
Final Thoughts
Dubai’s new regulation for foreign property sellers is not just another bureaucratic hurdle — it’s a proactive step toward safer, more transparent transactions. While it may add a few extra steps to the selling process, the long-term benefits far outweigh the inconvenience.
Whether you’re an agent, investor, or advisor, staying updated on these changes is key to successful property transactions in Dubai.
Trending Now: Why Transparency in Real Estate Matters More Than Ever
In 2025, real estate investors worldwide are demanding greater accountability and legal clarity. With Dubai aiming to attract high-net-worth individuals and long-term investors, regulatory updates like these help position the city as a global safe haven for real estate.
Ready to sell your property in Dubai?
Start by opening your UAE bank account — because transparency isn’t just a trend, it’s the future.real estate hotspots and how to invest wisely in this fast-changing market.
