Introduction
Qatar is a monarchy with full powers vested in the Emir as the
Head of State. The country's political system is democratic.
Islamic jurisprudence, i.e. the Shari'a Law, is the main source of
the country's legal system.1 Civil codes are being
implemented.2
In general, foreigners may acquire freehold and leasehold (99
years) properties in designated areas in Qatar. Law No. (17) of
2004 regulating Ownership and Usufruct of Real Estate and
Residential Units by non-Qataris (a.k.a. The Foreign Ownership of
Real Estate Law) opened the Qatar property sector to
foreigners.3
With regard to Qatar's fiscal system, it is one of the
least-taxed sovereign states in the world (the other is
Bahrain).4 Qatar
does not impose personal income tax, VAT, capital gains tax or
wealth tax.
Expropriation is not likely, but the court system can be slow,
bureaucratic, and biased in favour of Qataris and the
government.5
Legal Guide
LAW
The Shari'a Law, is the main source of the country's legal
system, although civil codes are being implemented. Qatar's
judicial system is comprised of:
- Courts of First Instance
- Courts of Appeal
- Court of Cassation
- Administrative Court
- Constitutional Court
In respect of the real estate sector, following are some of the
relevant laws:
- The Constitution
- Law No (13) of 2000 Investment of Foreign Capital in the
Economic Activity (a.k.a. Foreign Investment Law) [amended
2004]
- Law No. (17) of 2004 regulating Ownership and Usufruct of Real
Estate and Residential Units by non-Qataris (i.e. The Foreign
Ownership of Real Estate Law)
- Cabinet Resolution No (20) of 2004 (concerning the designated
areas where non-Qataris may acquire ownership of immovable
properties)
- Law No (2) of 2006 (relevant Residency Permit to
non-Qataris)
OWNERSHIP & RIGHTS
Law No. (17) of 2004 regulating Ownership and Usufruct of Real
Estate and Residential Units by non-Qataris (a.k.a. The Foreign
Ownership of Real Estate Law) opened the Qatar property sector to
foreigners. In general, foreigners may acquire freehold properties
in the following designated areas in Qatar;
- West Bay Lagoon
- The Peral-Qatar
- Barwa Al-Khour
The 18 areas where foreigners can own leasehold property are
listed below; however more clarification is required in the areas
of title and registration.
- Musheireb (Area #13)
- Frij Abdul Aziz (Area #14)
- Doha Jadeed (Area #15)
- Ghanem Al Qadeem (Area #16)
- Al Rifa Al Hitmi (Area #17)
- Al Salata (Area #18)
- Bin Mahmoud (Area #22)
- Bin Mahmoud (Area #23)
- Rawdat Al Khail (Area #24)
- Al Mansoura & Bin Dirham (Area #25)
- Najma (Area #26)
- Umm Ghuwailina (Area #27)
- Al Khulaifat (north and south) (Area #28)
- Al Sadd (Area #38)
- New Mirqab & Al Nasser (Area #39)
- Doha International airport (Area #48)
- Al Dafna & Onaiza & Al Qitar (Area #60 & 61 &
63)
- Losail, Al Kharaij & Jebel Thiya (Area #69 &
70)6
BUYING PROCEDURE
The buying procedure for an off-plan property is in general as
follows:
1. Reserve the property
Once you have chosen your ideal property, a reservation
agreement is to be signed with the seller and a reservation deposit
needs to be paid (will form part of the purchase price).
2. Mortgage Pre-assessment
Even most mortgage lender grant mortgage upon the completion of
a project, if mortgage is crucial for buyer, we suggest buyer to
communicate with banks and have a pre-assessment on how much buyer
can borrow, prior to signing of property contract.
3. Due Diligence
Prior to signing of property contract, we suggest buyer to carry
out a due diligence check on the developer and development on the
following:
- the company registration certificate (if the seller is an
entity) or proof of seller's identity (if the seller is a private
individual) or proof of a personal who is duly authorised to sign
all legal documents (if the seller is an entity or an attorney of
the seller)
- the title certificate for the land
- the planning permission/consent
- the building licence
- all other relevant permissions for the commencement of the
project
- any lien, debt, development finance, or encumbrances against
the land and/or the project
- at least one of bank guarantee, insurance and/or assurance
ensure the completion of the project or an escrow system to provide
security for the buyer's property payments
- an independent quantity surveying (QS) system during the
construction period
The above due diligence check is more appropriate to be done
through a local law firm or conveyancing lawyer.
4. Exchange Contract
Before singing preliminary purchase contract, buyers are
suggested to consult a local law firm or conveyancing lawyer on
analyse the risk, any unfavourable terms of the contract. Upon
signing of the contract, first instalment/payment is often
required.
5. Ownership Certificate
Once the property is completed, the following procedures need to
be completed in order for the seller to transfer the final title to
the buyer:
a. Bring the title of the property to the archive office of the
real estate registry
b. Fill sale-purchase agreement that is available in the real
estate registry
c. The archive office registers the title information in the
Archive database
d. The seller takes the file from the archive office to the
registrar office in the real estate registry
e. The registrar office checks non-encumbrances
f. The buyer pays the transfer fee at the real estate
registry
g. The notary office checks whether the seller is the owner before
allowing the transfer to take place
h. The director of the real estate registry office approves the
transfer agreement
i. The buyer takes the approved transaction to the registrar office
for final records
j. Buyer receives the final title in his name7
Taxation (for non-resident private individuals)
TAXATION WHE ACQUIRING/PURCHASING PROPERTY
| Category |
tax/fee rate |
| Property transfer fee |
0.25% of property value + QAR5 (Palestine
fee) |
| Value Added Tax (VAT) |
NIL |
TAXATION WHEN HOLDING/OWNING PROPERTY
| Category |
tax/fee rate |
| Personal Income
tax |
NIL |
| Withholding Tax |
NIL |
| Service Tax |
10% or
5% on restaurant and hotel
bills |
TAXATION WHEN SELLING/DISPOSING PROPERTY
| Category |
tax/fee rate |
| Capital Gains
Tax |
NIL |
| Wealth Tax |
NIL |
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