Real estate : what are the taxes in Dubai ?
If you are interested in taxes and real estate taxation in Dubai, you will not be disappointed. Indeed, the taxation of Dubai is extremely advantageous, whether you are resident in Dubai or France. Dubai Immo, a real estate agency based in Dubai, details for you the taxation related to your real estate investment in Dubai.
Buying real estate in Dubai : notary fees
In Dubai, the Dubai Land Department will act as a notary. It is a government entity that handles all real estate matters in Dubai. The DLD acts as a notary for all new and off-plan property transactions in Dubai. The notary fee (called DLD fee) is 4% of the property price. The percentage is fixed regardless of the price of the property. The DLD fee can sometimes be partially or fully donated by the developers during promotional events.
No property tax or capital gains tax in Dubai
In Dubai, there is no property tax to be paid by the owners. The only tax you will pay on the ownership of your property is the 4% for registering your property in your name (DLD fee). In case of resale with capital gain, you will again not have to pay anything.
Municipality fees to be paid by the occupants of the apartment
Your tenant will have to pay theMunicipality fees, which amount to 5% of the annual rent. This payment is made directly on the DEWA bill for water and electricity.
No taxes on rental income in Dubai
There is no tax in Dubai on rental or property income of any kind. There is also no VAT to be paid on rental or purchase of residential property.
Tax Convention between France and the United Arab Emirates
The tax convention between the United Arab Emirates and France presents the tax agreements concluded between the two countries. It is specified in the convention that the assets will be taxed directly only in the country where the asset is located. Thus a UAE resident who has invested in France will pay French tax for his property in France, and vice versa. If you will not pay direct taxes on the rental income from your real estate investment in Dubai, your tax rate base could possibly be impacted.
