Tax calculatorDubai
Dubai Real Estate and Taxes
As a property owner in Dubai, you benefit from numerous advantages, regardless of whether you live in Dubai or another country. Below, we have compiled the most important information on the topic Dubai Real Estate and Taxes for you.
Dubai imposes no taxes, neither on rental income nor on profits generated from the resale of a property. Transfer fees, similar to the purchase related costs in Europe, amount to 4% of the purchase price and are typically paid by the buyer to the DLD (Dubai Land Department).
If a property in Dubai is owned by a company, all profits generated since 2023 are subject to national corporate taxation.
Our Tip: If a is company is set up that does not have a licensed business purpose that includes investment in real estate or similar, tax exemption in Dubai can also be achieved. Our team is happy to advise you!
Dubai does not levy any property or capital gains tax, only a one-time fee of 4% on acquisition.
Dubai Taxes on Rental Income
As a property owner, you pay no taxes on rental income in Dubai. Tenants must pay housing fees to Dubai Municipality, which is calculated at the rate of 5 per cent of the yearly rental charges. These so-called Municipality Fees are charged directly to your tenant through the electricity and water bill from DEWA (Dubai Electricity and Water Authority).
Inheritance Taxes on Properties in Dubai
You can find the current regulations on inheritance tax in Dubai on our website under the menu item “Dubai Inheritance Taxes.”
Value Added Tax in Dubai
Since January 1, 2018, a value added tax rate of 5% has been applied in the United Arab Emirates.
For residential properties in Dubai, there is also a zero taxation regarding value added tax, regulated in §§45 and 46 of the UAE VAT law.
In contrast to residential properties, the leasing and buying/selling of commercial properties in Dubai are generally subject to VAT obligations. However, implementing regulations of the law provide for specific provisions under certain circumstances. Free trade zones are not necessarily excluded from this regulation.
Our Conclusion
The acquisition, use, and potentially leasing of properties for residential purposes are also uniquely advantageous in terms of taxes in Dubai.
In the area of commercially used properties, significant benefits and opportunities also exist for investors. However, there are several more points to consider, about which we would be happy to inform you.
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