Is There a Property Tax in Dubai – Learn About Property Tax in UAE according to 2023

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Is There a Property Tax in Dubai

Are you living in Dubai and have some property there? Do you want to invest In United Arab Emirates? 

Would you like to know more about property tax in the United Arab Emirates? We have brought you an article with information about property tax in UAE, so keep reading it till the end.

Property Tax in Dubai

As you know, Dubai is the largest city in the United Arab Emirates. While buying a property in Dubai, you must be worried about whether the UAE has a property tax. 

In case you’re considering buying property in Dubai, let us share that according to the Santander Bank, there is no tax regime for expats living in Dubai, so you would not have to pay any property tax. 

The UAE government does not impose any tax on real estate owners. There is no annual property tax, value-added tax, or capital gains tax. The only expense you need to bear is the transfer fee while you buy or sell any property in Dubai.

Transfer Fee in Dubai

While you buy or sell property in Dubai, you need to pay a transfer fee, usually 4%. One party does not pay this amount, which is divided among both parties. Both seller and buyer need to pay it equally.

Payable Tax on Transfer of Property

Taxes on property transfer in Dubai are payable in the following scenarios;

  1. You are selling any property in Dubai.
  2. You are buying property in Dubai.
  3. There is a lease agreement of the property between the two parties.
  4. There is a mortgage.

Other Taxes and Fees in Dubai

There are a few other fees that you need to pay while buying or selling your property in Dubai. Those fees include the following;

  • Administrative fee
  • Registration fee
  • Municipality tax
  • Ownership certificate fee

Let’s learn about each category one by one.

Administrative Fee

Here is the first fee that you need to pay. The fixed administrative fee is AED 540 ($ 147).

Registration Fee

The second kind of fee you need to pay is the registration fee. The registration fee for your property depends on the cost of your property. The registration fee is AED 2000 ($ 545) for a property costing less than AED 500000 ($ 137000). For property whose cost is above AED 500000 ($ 137000), the registration fee is AED 4000 ($ 1090).

Municipality Tax

Being a property owner or tenant in Dubai, you need to pay an amount in terms of municipality tax. Your rental property’s annual rental income is taxed at 5%. According to Dubai’s local government, this tax funds the local services in Dubai.

Ownership Certificate Fee

At last, we will discuss the ownership certificate fee. While you are getting an ownership certificate for your property, you need to pay an ownership certificate fee which is also fixed. The ownership certificate fee is AED 250 ($ 68).

BuyersFrequently Asked Questions

Is buying property in Dubai tax-free?

Dubai is among the few cities which do not implement a tax on property owners. Buyers only need to pay a transfer and registration fees while buying a property in Dubai.

What is the property tax rate in Dubai?

The United Arab Emirates does not impose any property tax on property owners. However, buyers and sellers must split and pay 4% equally when buying or selling.

How much is the tax on property income?

Property owners, who are getting some income through their property in Dubai, must pay 5% of the average rental income. They also need to pay the Dubai land department an amount at the transfer time.

Final Thoughts

There are no tax requirements for expats living in Dubai, even though it’s a luxurious city in the United Arab Emirates. In Dubai, you do not have to pay property taxes when buying or selling property, making it one of the few tax-free zones worldwide. Other fees might apply to you, like transfer fee, registration fee, municipality tax, and ownership certificate fee. If you have any concerns or questions about investment in real estate in Dubai, feel free to contact RAS Properties.

Enjoy investing in Dubai’s property, get profit and cheers! Happy sharing!

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