Is There Property Tax in Dubai? Fees, Stamp Duty and UK Tax

Is there property tax in Dubai for foreigners?

There is no annual property tax in Dubai for anyone, foreign or local. The same rules apply to UAE residents and overseas owners.

What owners do pay are charges, not taxes on the property's value:

The one-off costs of buying, which add about 6.6% to the price of a cash resale, are in our guide to the cost of buying property in Dubai.

Is there stamp duty in Dubai?

There is no stamp duty in Dubai. The nearest equivalent is the Dubai Land Department (DLD) transfer fee of 4% of the purchase price, paid once when the sale is registered. Unlike UK stamp duty, the DLD fee is a flat 4% at every price, with no bands and no surcharge for second homes or overseas buyers. With the registration trustee fee and title deed charges, DLD fees on an AED 1 million (about £205,000) home come to AED 44,720 (about £9,200); see DLD fees for every item.

Do you pay tax on rental income in Dubai?

No. An individual who lets a Dubai home pays no UAE tax on the rent. The UAE has no personal income tax, and the Federal Tax Authority's corporate tax guide confirms that an individual's rental income from UAE property is outside corporate tax, however much it is.

“"Real Estate Investment income is disregarded when determining Turnover and so is not subject to Corporate Tax, regardless of the amount."”

Federal Tax Authority, Real Estate Investment for Natural Persons guide, October 2024

The exclusion covers renting, sub-letting and selling UAE property by an individual, provided the activity is not done, and does not need to be done, under a business licence. Registering a tenancy on Ejari, Dubai's tenancy register, does not count as a licence.

Is there capital gains tax when you sell property in Dubai?

No. The UAE has no capital gains tax for individuals. Profit on selling a Dubai home you own in your own name falls within the same real estate investment exclusion as rent, so the UAE takes nothing when you sell.

When does UAE corporate tax apply to property?

UAE corporate tax applies at 9% on taxable income above AED 375,000 (0% below), for financial years starting on or after 1 June 2023. For property it matters in two situations.

• You own through a company. A company is taxed under the normal corporate tax rules, so rent and gains in a company can be taxed at 9% above the AED 375,000 threshold.
• You let under a licence. An individual becomes taxable only if their business turnover exceeds AED 1 million in a calendar year. Rental income counts as business income when it is earned under a licence, or should be. The Federal Tax Authority's guide gives the example of an owner with 14 flats let as holiday homes under Dubai Department of Economy and Tourism permits: that income is in scope. Her 2 flats let on ordinary Ejari tenancies are not.

Is there VAT on property in Dubai?

The UAE Ministry of Finance treats homes and commercial property differently. The first sale of a new home within three years of completion is zero-rated, and later sales and leases of homes are generally exempt, so buyers and tenants of homes pay no VAT on the price or rent. Sales and leases of commercial property, such as offices and shops, carry 5% VAT. Services around a purchase, such as agent commission and the trustee fee, carry 5% VAT whatever the property.

What do property owners pay every year?

Dubai owners pay two recurring charges, and neither is a tax on the property's value.

• Service charges pay for the building and community: cleaning, security, maintenance, insurance and a reserve fund. They are set per square foot of your title-deed area and must be approved by RERA, the Real Estate Regulatory Agency. The owner pays them, not the tenant. See service charges in Dubai.
• The housing fee is Dubai Municipality's charge of 5% of the annual rent, added monthly to the DEWA (electricity and water) bill. Tenants pay it on their rent; owners who live in their home pay it on a RERA rental index value; UAE nationals are exempt. See the Dubai housing fee.

Legally no tax, in practice some tax for many owners

Legally, Dubai charges no tax on an individual's property. In practice, many overseas owners still pay tax on it, because their home country taxes worldwide income. The UK is the main example. The UK-UAE double taxation convention lets the UAE tax Dubai rent and gains first (Articles 6 and 13), but the UAE does not use that right, so there is no UAE tax to credit against a UK bill.

For UK buyers: do UK residents pay UK tax on Dubai property?

Yes, usually. If you are UK tax resident, the UK taxes your worldwide income and gains, including rent and gains from a Dubai property. The rules below come from gov.uk; they change often, so check your own position with a qualified adviser.

“"If you are UK resident, you'll normally pay tax on your foreign income."”

GOV.UK, Tax on foreign income

UK income tax on Dubai rent

A UK resident who lets a Dubai property reports the rent as foreign income, usually on a Self Assessment tax return, and pays UK income tax on the profit. The absence of Dubai tax does not reduce the UK bill, because relief for double taxation is only for tax actually paid abroad.

UK capital gains tax when you sell

UK residents pay capital gains tax when they dispose of overseas property, according to gov.uk. For the 2025-26 and 2026-27 tax years the rates are 18% and 24%, with a £3,000 annual tax-free allowance. As an illustration only: a £61,500 gain, taxed at 24% after the allowance, would cost about £14,000.

Non-doms: the remittance basis ended on 6 April 2025

The remittance basis, which let some UK residents with a foreign domicile leave foreign income untaxed if they kept it abroad, ended on 6 April 2025. It was replaced by the 4-year foreign income and gains (FIG) regime. The FIG regime covers only your first four years of UK residence after at least 10 consecutive years of non-residence. You must claim it each year on your Self Assessment return, and claiming it means losing your income tax and CGT tax-free allowances.

Inheritance tax on Dubai property

Since 6 April 2025, UK inheritance tax depends on residence, not domicile. If you have been UK resident for at least 10 of the previous 20 tax years, you are a "long-term UK resident" and inheritance tax can apply to overseas assets, including a Dubai home. After you leave the UK, that status can continue for between 3 and 10 tax years, depending on how long you lived in the UK.

Moving to Dubai: the statutory residence test

Whether the UK still taxes you after a move to Dubai depends on the statutory residence test. You are automatically UK resident if, for example, you spend 183 days or more in the UK in the tax year. You are automatically non-resident if you spend fewer than 16 days in the UK (46 if you were not UK resident in the previous three tax years), or work full-time abroad and spend fewer than 91 days in the UK, with no more than 30 of them working. Between those lines, a "sufficient ties" test looks at family, work and homes in the UK. Non-residents pay UK tax only on UK income.

One trap: gov.uk warns that people who become non-resident and return within five years may have to pay UK tax on gains from overseas property sold while they were away.

What changed in 2025 and 2026

• 6 April 2025: the UK remittance basis ended and the 4-year FIG regime began; UK inheritance tax moved to a residence-based test.
• October 2024: the Federal Tax Authority published its guide confirming that individuals' real estate investment income is outside UAE corporate tax.
• 2025 to 2026: UK capital gains tax rates stayed at 18% and 24%, with a £3,000 allowance.
• No change in Dubai: still no property tax, no stamp duty and no personal income tax; the DLD fee remains 4%.