Guide Owning in Dubai
Property tax in Dubai: what owners pay
Dubai is known for what it doesn't tax. Here is what an owner actually pays, what they don't, and the cases where tax does come in.
Updated · 5 min read
In short
- Dubai has no annual property tax, and individuals pay no capital gains tax or income tax on property held in their own name.
- What you do pay is one-off or fee-based: the 4% DLD transfer fee when you buy, 5% VAT on agency and service fees, and a housing fee through DEWA.
- Property held through a company can fall under UAE corporate tax at 9% above AED 375,000 of taxable income, and your home country may tax the gain.
What you pay, and what you don't
For an individual owning residential property in their own name.
| Tax or fee | What applies | How it works |
|---|---|---|
| Annual property tax | None | There is no yearly tax on owning property in Dubai. The running cost is the building's service charge. |
| Capital gains tax | None for individuals | A profit on selling a home held in your own name is not taxed in the UAE. |
| Tax on rental income | None for individuals | Rent from property held in your own name is not taxed, as long as the letting doesn't need a licence. |
| Inheritance tax | None | No tax is charged when property passes on death, though UAE inheritance rules decide who it passes to. |
| DLD transfer fee | 4%, once | Paid when the property is registered in your name, by custom by the buyer. |
| VAT | 5% on fees | Charged on agency commission, trustee and developer fees. Residential resales and rents carry none. |
| Housing fee | Through DEWA | Dubai Municipality's fee on the DEWA bill: 5% of the annual rent for tenants. Owners living in their own home pay it too. |
When tax does apply
It turns on how you hold the property, not on where you live.
- 01
Held in your own name
Rent and sale profits sit outside UAE corporate tax, as long as the activity doesn't require a licence from a licensing authority.
- 02
Held through a company
Profits are taxed under UAE corporate tax: 0% on taxable income up to AED 375,000 and 9% above it.
- 03
Letting as a business
If the letting needs a licence, it counts as a business, and corporate tax applies once business turnover passes AED 1 million a year.
Your home country
No UAE tax is not the same as no tax. Many countries tax their residents on income and gains made anywhere, so rent or a sale profit from Dubai may need declaring at home. Check with an adviser where you are tax resident.
The one-off costs are itemised in the real cost of buying, and the yearly building charge in service charges explained. Letting the home out? Read renting out your property.
General guidance as of October 2026, not tax, legal or financial advice. Tax rules change and depend on your circumstances, so take advice from a qualified tax adviser.