The loyal tax system in the UAE attracts investors from all over the world. Official taxes on real estate in Dubai are 0%. But there are still some fees when buying an apartment. Fees for the purchase of real estate in Dubai are slightly higher than in the rest of the emirates due to high demand.
Content of the material
- Main taxes related to real estate in Dubai
- Other housing maintenance costs
- Advantages of buying real estate in Dubai
- Conclusion
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Main taxes related to real estate in Dubai
In Dubai, there are taxes (officially registration fees) that need to be paid when:
- you buy real estate,
- rent it out,
- contributions for the operation of property.
| Name of tax, fee | Rate, amount of duty | Brief characteristics | When and to whom you need to pay |
| Dubai Land Department transfer fee (DLD) | 4% of the property value + AED 540 fee | It is necessary to pay to the Dubai Land Department for the registration of the property when the owner changes | The seller and the buyer of real estate pay when making a transaction, often in equal parts (2% and 2%) |
| Registration fees | – AED 4000 if the property is more expensive than AED 500000 – -AED 2000 if the property is up to AED 500000 | One-time fee | Pay at the time of purchase |
| Title deed fee | 250 AED | One-time fee | Real Estate Title Deed Fee |
| Dubai Municipality Fee | 5% of the rental agreement amount | The fee in favor of the management company is included in the utility bills. | It arises when renting out the premises, the tenant pays in installments |
| Licensed Realtor Services | 2% of the contract amount | N/A | The purchase and sale of secondary real estate should take place with a realtor. The amount is divided between the buyer and the seller. When buying primary real estate, only the DLD contribution is paid, brokers have no commission. |
| The building maintenance fee (service charge) is paid by the owner in addition to utilities | $15 to $65 per year per square meter | Goes for cleaning, repairs, maintenance and modernization. | Paid by the property owner annually |
| VAT | 5% | For ordinary apartment owners, it does not exist | It appears in some cases when buying, renting commercial real estate |
Other housing maintenance costs
You will have to pay monthly for utilities:
Electricity and water – contract with DEWA.
You will pay from $50 per person.
Conditioning.
The amount depends on the season, 50-120 dollars per month.
Internet.
$100 – $130 per month.
Advantages of buying real estate in Dubai
Purchasing real estate in Dubai has a number of undeniable advantages:
- No taxes on property, income.
- In the case of a gift or inheritance, only the DLD fee needs to be paid.
- There are no mandatory insurance contributions.
- Guaranteed income when renting out property, the cost of apartments only increases.
- There is no requirement to submit annual reports.
- Steadily growing economy.
- High demand for real estate among tourists.
- Obtaining a resident visa.
Conclusion
Property taxes in the UAE are among the lowest in the world. They are mainly represented by registration fees and fees only at the time of buying a property. Dubai is the most popular emirate for buying residential and commercial real estate.
