Guide to Property Taxes in United Arab Emirates
Tax Rate on Rental Income |
|||
| Monthly Income | $1,500 | $6,000 | $12,000 |
| Tax Rate | 0% | 0% | 0% |
Nonresidents are taxed on their UAE-sourced income. Married couples are taxed separately.
Income Tax
The UAE does not impose income tax on individuals.
Rental Income Tax
Non-Resident Individuals
Net rental income earned by nonresidents is not taxed in the UAE.
Resident Companies
Income and capital gains earned by companies are subject to corporate income tax at a flat rate of 0% to 9%, depending on the emirate and specific regulations. Income-generating expenses are deductible when calculating taxable income.
Non-Resident Companies
Income and capital gains earned by non-resident companies are taxed at a flat rate of 0% to 9%. Income-generating expenses are deductible when calculating taxable income.
Capital Gains Tax
The UAE does not impose capital gains tax on individuals or companies.
Corporate Taxation
Income Tax
Income and capital gains earned by companies are taxed at a flat rate of 0% to 9%, depending on the emirate and specific regulations. Income-generating expenses are deductible when calculating taxable income. Rental income received by corporations is considered business income and is subject to the corporate tax rate.
Property Taxation
The UAE does not impose property tax on real estate. However, there are other fees and charges associated with property ownership and transactions.
Municipal Fees
Some emirates levy municipal fees on property owners, typically as a percentage of the property's annual rental value. These fees can vary by emirate and are used to fund local infrastructure and services.
Property Buying Costs and Taxes in UAE
Transaction Costs
| Description | Cost Range | Who Pays |
| Property Transfer Tax | 4.00% | Buyer |
| Agent Fee Buyer | 2.00% | Buyer |
| Agent Fee Seller | 2.00% - 3.00% | Seller |
| Legal Fees | 1.00% | Buyer |
| Notary Fees | n/a | Buyer |
| Roundtrip Cost | 9.00% - 10.00% |