Financing a Home in Qatar as a Foreign Resident

What foreigners are allowed to buy

Law No. 16 of 2018 on non-Qatari ownership, implemented through Cabinet Resolution No. 28 of 2020, opened selected areas to foreign buyers. Freehold zones include West Bay, The Pearl Island, Lusail, Al Dafna, Al Qassar, Onaiza and Al Khraij, with further resort projects added since.

Outside freehold zones, sixteen designated areas such as Msheireb and Al Sadd allow non-Qataris a usufruct right of 99 years. Banks finance both types, but a usufruct right is a long lease rather than outright title, which affects valuation and resale.

Residency linked to ownership

Property valued above QAR 730,000 entitles the owner to a residence permit for as long as ownership lasts. Above QAR 3.65 million, owners gain access to permanent-resident style benefits in health and education, provided they live in Qatar at least ninety days a year.

Why only Islamic banks offer this product

In 2011 the Qatar Central Bank (QCB) instructed conventional banks to close their Islamic windows. Since then, Sharia-compliant home finance is supplied by the four Islamic banks: Qatar Islamic Bank, Masraf Al Rayan, Dukhan Bank and Qatar International Islamic Bank.

Supervision and the role of the Sharia board

QCB supervises all banks under Law No. 13 of 2012 and sets the real estate finance rules. Each Islamic bank keeps its own Sharia supervisory board, which approves the contracts, reviews the profit calculations and audits that the bank actually owns the property before reselling or leasing it.

How ijara and murabaha are used

For completed homes, banks commonly use murabaha: the bank buys the unit from the developer or seller and resells it to the customer at a disclosed price payable in instalments. The profit is fixed at signature and cannot increase if payments run late.

Ijara muntahia bittamleek is preferred for off-plan or leased properties. The bank keeps title and leases the property, then transfers ownership once the final rent is paid, which suits usufruct rights in particular.

Limits set by the central bank

QCB caps the ratio of finance to property value and the share of salary that can go on instalments, with stricter limits for non-Qataris than for nationals. The caps were revised in July 2023, so always ask the bank for the ratio applying to your nationality and income.

Registration and ownership practice

The Ministry of Justice acts as a one-stop shop for non-Qatari ownership, issuing title deeds and recording bank interests. For off-plan sales, a January 2026 decision requires a preliminary title deed for each unit, which helps banks finance before handover.

Taxes affecting a purchase

Qatar levies no personal income tax, so neither profit nor rent paid to the bank creates a deduction or a tax charge for an individual. Buyers pay registration fees to the Ministry of Justice, while VAT has not been introduced in Qatar.

Steps for an expatriate buyer

1. Confirm that the unit lies in a freehold or usufruct zone open to non-Qataris and that the developer is registered.
2. Ask your salary-transfer bank, or another Islamic bank, for an eligibility check based on salary and employer.
3. Pay the reservation deposit and obtain the sale and purchase agreement from the developer.
4. Submit the application with passport, residence permit, salary certificate and bank statements.
5. Let the bank value the property and issue an offer stating the contract type and profit amount.
6. Sign the murabaha or ijara contract and complete registration at the Ministry of Justice.
7. Apply for the property-linked residence permit once the title deed or usufruct certificate is issued.

Costs and documents to plan for

Frequent reasons for refusal

• Buying outside the approved zones, which makes the property ineligible for non-Qatari ownership.
• Employer not on the bank’s approved list, or salary not transferred to the financing bank.
• Existing personal finance pushing instalments beyond the QCB salary ratio.
• Residence permit expiring well before the planned end of the financing term.
• Developer project not yet approved by the bank for off-plan finance.

Comparing the four Islamic banks

Qatar Islamic Bank and Masraf Al Rayan are the largest players, while Dukhan Bank, created from the merger of Barwa Bank and International Bank of Qatar, runs frequent home finance campaigns. Qatar International Islamic Bank focuses more on personal and vehicle finance for residents.

Is a non-resident foreigner eligible?

Foreigners who do not live in Qatar can buy in freehold zones, but local Islamic banks rarely finance them because salary transfer and a Qatar ID are standard conditions. Non-residents usually pay cash or finance through an Islamic bank in their home country.

What happens when the job ends?

Loss of employment can trigger cancellation of residence, and banks may demand settlement or a new guarantor. Check the contract for a grace period and ask whether takaful covers involuntary loss of employment before signing a long-term commitment.

Can an existing loan be moved to an Islamic bank?

Yes. Buy-out offers let an Islamic bank settle another bank’s financing and replace it with murabaha or ijara. Early settlement charges at the old bank, a new valuation and the remaining residence permit term all determine whether switching makes financial sense.

Does owning property guarantee residency?

Ownership above QAR 730,000 qualifies for a residence permit, but the application is separate and conditions apply, including the minimum stay. A financed property can qualify, yet the bank’s registered interest must be disclosed in the residency application.