Property taxes in the UAE

Property taxes in the Emirates are among the lowest in the world. There are no taxes on purchase, rent, resale, but still there is something for which you will have to pay a certain amount of money, mainly registration fees.

So, what you will have to pay for:

– 4% of the property value + 540 AED fee to DLD - You have to pay to the Dubai Land Department for registering the property when there is a change in ownership. It needs to be paid at the time of the purchase and sale transaction. (In Abu Dhabi this tax is 2%)

– One-time fee of AED 2000 if the property is up to AED 500,000

And 4000 AED if the property is over AED 500,000

– One time fee of 250 AED for obtaining title to a property

– If renting out the property, tenant pays 2% to 5% of the rental agreement in installments. The amount of the tax is included in the utility bills.

– Maintenance fee - $15 to $65 per year

– VAT 5% on the purchase/lease of commercial property

– Do not forget about agency services, when selling / renting to help the buyer comes a specialist broker, who also pays a commission. Its size depends on the agency, usually starts at 2%.

From June 1, the changes will only affect legal entities (small, medium and large businesses) - a 9% tax will be introduced. It will be paid only by those who make more than 375.000 AED (approximately $100.000) profit per year and who operate within the country. If you operate in a free zone, but with foreign counterparties, you are exempt from paying.