In Dubai an individual pays no income tax, no capital-gains tax and no annual property tax. The main one-off payment on purchase is the DLD fee of about 4% of the price plus admin fees. The '0% tax' is true for a private owner but comes with caveats: VAT applies to commercial property and corporate tax applies to businesses.
What the buyer pays
The main payment on purchase is the Dubai Land Department (DLD) registration fee, about 4% of the value, plus fixed admin and agency fees. These are one-off transaction costs.
There is no annual property-ownership tax for individuals in Dubai. Utilities and community service charges are not a tax — they pay for running the building.
What the landlord pays
Rental income for an individual is not subject to income tax in the UAE. On resale there is no capital-gains tax. This is what makes Dubai attractive for a rental strategy.
Where '0%' has caveats
- 5% VAT applies to commercial property and some services; residential leases and first sale of homes are generally exempt or zero-rated.
- 9% corporate tax applies to businesses with profit above a threshold — this concerns companies, not a private home owner.
- Tax obligations in your country of residence may still apply — check this separately.