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Dubai has become a magnet for real estate investors across the globe. With its strategic location, zero income tax policy, and booming property sector, the city offers lucrative investment opportunities. But many potential buyers ask the same critical question: What are the actual property taxes in Dubai?
Understanding the property taxes in Dubai — and other associated fees — is essential for budgeting, compliance, and maximizing ROI. This guide breaks down everything you need to know, from government charges to hidden costs you might not expect.
Is There a Property Tax in Dubai?
One of Dubai’s biggest selling points is its no property tax policy. Unlike most global cities, Dubai doesn’t impose annual property taxes on homeowners or landlords. This means:
✅ No annual municipal property tax
✅ No capital gains tax
✅ No inheritance tax
But: While Dubai offers tax-free property ownership, there are other transactional fees and service charges to be aware of. Let’s explore them in detail.
Transaction-Related Property Fees in Dubai
When purchasing property in Dubai, you will incur several upfront costs. Here’s a breakdown of the major ones:
1. Dubai Land Department (DLD) Transfer Fee – 4%
This is the biggest mandatory fee and must be paid at the time of registering the property:
- Amount: 4% of the property value
- Who Pays: Usually the buyer (some developers offer to cover this)
- Where Paid: Directly to the Dubai Land Department
Example: On a AED 1 million apartment, the DLD fee will be AED 40,000.
2. Title Deed Registration Fee – AED 2,000–4,000
- Properties under AED 500,000: AED 2,000
- Properties over AED 500,000: AED 4,000
- Admin charge: AED 540 (including VAT)
This fee is paid for issuing the official Title Deed in your name.
3. Real Estate Agency Fee – 2%
If you buy through an agent (standard practice), they typically charge a 2% commission on the property price.
- Note: Always sign Form A and B with certified agents registered with RERA.
4. Developer NOC Fee – AED 500–5,000
If the property is purchased on the secondary market (resale), the developer charges a No Objection Certificate (NOC) fee to transfer ownership.
Ongoing Property Ownership Costs in Dubai
While Dubai doesn’t impose annual property taxes, there are recurring ownership costs:
1. Service Charges / Maintenance Fees
Every property owner in Dubai must pay annual service charges, which cover:
- Building maintenance
- Cleaning
- Security
- Utilities in common areas
Rates are calculated per square foot and vary by community and building.
| Area | Average Service Fee (AED/SqFt) |
|---|---|
| Downtown Dubai | 20–25 |
| Dubai Marina | 15–20 |
| JVC / Arjan | 10–14 |
| Palm Jumeirah | 20–30 |
| Dubai Hills Estate | 12–15 |
Example: A 1,000 SqFt unit in JVC may incur AED 12,000 annually in service charges.
2. Property Management Fees (Optional)
If you’re a remote investor or prefer hands-off management, hiring a property manager typically costs 5%–10% of the annual rental income.
Taxes on Rental Income in Dubai
1. No Income Tax for Individuals
There is no personal income tax on rental income in Dubai — making it one of the best destinations globally for property investors.
2. VAT on Commercial Properties Only
- Residential properties: Exempt from VAT
- Commercial properties: 5% VAT may apply on rental or sale
- VAT applies to new developments delivered within 3 years (5% on sale price)
Are There Capital Gains Taxes?
No. Dubai does not impose capital gains tax on the resale of property.
This allows investors to retain full profits from price appreciation, which is especially appealing for those flipping off-plan properties or investing in high-growth areas.
Hidden Costs to Watch Out For
Even though property taxes in Dubai are practically non-existent, here are some hidden fees to account for:
- Mortgage Registration Fee: 0.25% of loan amount (if financing)
- Valuation Fee: AED 2,500–3,500 for mortgage buyers
- Bank Processing Fees: 0.5%–1% of loan amount
- Ejari Registration: AED 215 for annual rental contracts
- Home Insurance (optional): AED 1,000–2,000 annually
Legal & Regulatory Framework Supporting Tax-Free Property
Dubai’s property sector is regulated by the Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD). The framework ensures transparency and compliance:
- DLD registration ensures legal ownership
- RERA regulations ensure developers and brokers are licensed and accountable
- Rental caps protect tenants and ensure rental income stability for landlords
Why Low Property Taxes in Dubai Are a Strategic Advantage
Investors from high-tax countries like France, the UK, and Canada are turning to Dubai for tax-friendly wealth building. Here’s how Dubai compares globally:
| City | Property Tax Rate (Annual) |
|---|---|
| New York | ~1.2% |
| London | 0.5%–2.0% (Stamp Duty + CGT) |
| Paris | ~1.0% + annual wealth tax |
| Dubai | 0% |
Conclusion: Dubai Offers an Unmatched Tax-Free Advantage
Whether you’re buying your first apartment or investing in multiple units, understanding property taxes in Dubai helps you plan smarter.
✅ No income tax
✅ No capital gains tax
✅ Transparent one-time fees
✅ Low ongoing service charges
Dubai remains one of the most tax-efficient real estate markets in the world. If you’re considering investing, now is the time to act.
📩 Ready to explore your next property investment?
At Cevitas Real Estate, we help investors navigate every step — from property selection to ROI optimization and legal support. Book your free strategy call today.
FAQ – Property Taxes in Dubai
Is there a property tax in Dubai?
No, Dubai does not impose annual property tax or capital gains tax.
What are the main fees when buying property?
You’ll pay 4% DLD fee, AED 2,000–4,000 for title registration, and a 2% agency fee.
Do foreigners pay more taxes than locals?
No. All property investors are treated equally under UAE law — regardless of nationality.
Are there hidden costs?
Yes. Consider mortgage fees, service charges, and optional property management.