Loading
Finance / Tax
The UAE has no personal income tax, no capital gains tax, no estate tax, and no annual property tax. But it does have DLD transfer fees, VAT on commercial property, and — since 2023 — a corporate-tax regime that touches company-held rental income. Here is what each line costs.
| Category | Rate | Tax base | Authority | Who pays |
|---|---|---|---|---|
| DLD transfer fee | 4% of property price | Sale value (or higher of sale/valuation) | Dubai Land Department | Buyer at transfer (split with seller by contract) |
| VAT on new residential | 0% (zero-rated) | First sale within 3 years of completion | Federal Tax Authority | Developer reclaims input VAT; buyer pays 0 |
| VAT on commercial property | 5% standard | Sale or lease consideration | Federal Tax Authority | Buyer / tenant |
| Annual service charges | AED 12-35 per sqft / yr | Property size + amenity tier | Developer / OA via JOPD | Owner — not a tax, but recurring |
| Corporate Tax on rental | 9% (above AED 375k profit) | Net rental profit for legal-entity owners only | Federal Tax Authority | Owner if held via UAE company; individuals exempt |
| Capital gains on sale | 0% | Difference between purchase and sale price | (no UAE personal CGT regime) | Seller — individuals owe 0; entities under CT regime |
| Inheritance / estate | 0% UAE-side | Estate transfer to heirs | (no UAE estate tax) | Beneficiary — DLD transfer fee may still apply |
The headline that catches most landlords: the 2023 Corporate Tax law applies only to legal entities. Individuals holding rental property in their own name continue to pay 0%. Properties held via an LLC, free-zone entity, or other corporate structure are taxed at 9% on profit above AED 375,000 per year.
| Scenario | Gross rent | Deductible | Net profit | CT due | After tax |
|---|---|---|---|---|---|
| Individual landlord, 1-br Marina | 110,000 | 22,000 | 88,000 | 0 | 88,000 |
| Individual landlord, 2-br Downtown | 200,000 | 45,000 | 155,000 | 0 | 155,000 |
| Company landlord, 1-br Marina | 110,000 | 22,000 | 88,000 | 0 | 88,000 |
| Company landlord, full building | 6,500,000 | 1,650,000 | 4,850,000 | 402,750 | 4,447,250 |
Deductible costs typically include service charges, property management, maintenance, insurance, and (for companies) the mortgage interest portion of payments. Capex is amortised.
The DLD fee + VAT lands in closing-costs; the corporate-tax line lands in net rental yield. Run them together for a full-stack post-tax picture.