What taxes I will pay on purchasing property in Dubai?
There are no residential direct property taxes in Dubai, one of the seven emirates of the United Arab Emirates (UAE). Individuals are not subject to personal income taxes or capital gains taxes in the UAE, including Dubai.
However, there are other charges and levies related to Dubai property ownership, such as:
Associated Cost: There is a 4% one-time land registry charge or tax when buying or selling real estate in Dubai, whether it be residential or commercial. This fee is split 50/50 between the buyer and the seller. The fee must be paid to the land department on the day when ownership of the property is transferred. It is based on the contract sales-purchase price of the property. In actual life, the buyer is often responsible for paying this tax.
2% commission for real estate agent, you must pay the agent’s commission. A qualified realtor can aid buyers in making informed decisions along the journey.
Municipality Fee: In Dubai, property owners may be required to pay an annual municipality fee, which is normally roughly 5% of the property’s yearly rental value. This fee is normally paid by the tenant; however, it can be agreed upon between the landlord and tenant.
Service Charges: If you own property in a gated community, residential complex, or some locations with shared facilities, you may be required to pay service charges or maintenance fees to cover the expenses of property management services such as security, landscaping, and maintenance.
It’s crucial to keep in mind that tax laws and regulations might change, and additional taxes can be enacted in the future. For the most precise and current information on property taxes in Dubai, it is thus advised to check with local authorities or a tax expert.