Thanks to its tax-friendly environment and robust legal framework, Dubai is a top choice for global property investors. While there’s no annual property tax, buyers and sellers must still consider several transactional costs and charges. This blog provides a complete overview of real estate taxes in Dubai as of 2025.
Is There Property Tax in Dubai?
Annual Property Tax: None
One of the biggest advantages of investing in Dubai real estate is the absence of annual property taxes. Neither residents nor non-residents are required to pay recurring property taxes, unlike in many other global cities.
Other Taxes to Consider
Though there’s no property tax, investors must account for transactional fees, VAT, and service charges that affect overall costs and returns.
Key Real Estate Taxes & Charges in Dubai
Dubai Land Department (DLD) Transfer Fee
- Amount: 4% of the property’s sale price
- Responsibility: Usually split 50/50 between buyer and seller (negotiable)
- Purpose: Paid to register the property transaction with the DLD
DLD Admin Fee
- Amount: AED 580 for completed property or AED 40 for off-plan
- Purpose: Administrative charge for document processing
Value Added Tax (VAT)
- Rate: 5%
- Applies to: Commercial properties and services (e.g., brokerage, maintenance)
- Note: Residential properties are generally exempt unless sold within 3 years of completion
Real Estate Agent Commission
- Typical Rate: 2% of the sale price
- Paid By: Usually the buyer
- Note: This is not a government tax but a standard market cost
Mortgage Registration Fee (If Applicable)
- Rate: 0.25% of the loan amount
- Paid To: Dubai Land Department
Are Sellers Responsible for Any Taxes?
Transfer Fee Sharing
As noted, sellers may be responsible for up to 50% of the DLD transfer fee, depending on agreement terms.
Capital Gains Tax: None
Dubai does not impose capital gains tax, meaning sellers retain full profits from a property sale. This is a significant advantage for property flippers and long-term investors.
Additional Costs to Factor In
Service Charges
These are annual fees paid by property owners to maintain common areas and facilities.
- Range: AED 10–50 per sq. ft., depending on property type and location
Maintenance Fees
For villas and townhouses, owners may have to manage independent maintenance costs beyond community service fees.
NOC Fee (No Objection Certificate)
- Range: AED 500–5,000
- Paid To: Developer
- Purpose: Required for transferring property ownership
Tax Benefits for Foreign Investors
Tax-Free Income
Rental income from Dubai properties is not taxed by the UAE government.
No Withholding Tax
Foreign investors don’t face any withholding tax on income or repatriated funds.
Double Taxation Treaties
UAE has signed double taxation agreements with 100+ countries, preventing dual taxation on income and property.
Dubai vs Global Markets: Tax Comparison
| City | Annual Property Tax | Capital Gains Tax | Transfer Fees |
| Dubai | 0% | 0% | 4% (DLD fee) |
| New York | ~1.2% | Up to 20% | ~2.5% |
| London | ~1.8% | 18–28% | ~3–15% (stamp duty) |
| Singapore | ~10–15% (ABSD) | 0–15% | 1–4% |
Conclusion: Tax-Efficient Investing with Tenco Homes
Dubai’s real estate tax structure remains one of the most investor-friendly in the world. With no annual property tax, no capital gains tax, and minimal transactional charges, the city offers a powerful combination of transparency, legal protection, and profitability.
Looking to invest in a tax-efficient, high-growth market?
Trust Tenco Homes to guide you through Dubai’s property landscape. Our expert team ensures you make smart, tax-aware decisions whether you’re buying, selling, or leasing.
Contact Tenco Homes today and invest where your returns aren’t taxed away.
