What Property Taxes Do Expats Pay for Owning in Dubai? (2024)

Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.

Q. I hear the market is ramping up in Dubai. I’m an expat living here, what are the various tax implications for owning in the city?

A. There is no special tax regime for expatriates in the U.A.E., according to a report by Santander Bank.

That means expats in Dubai, the U.A.E.’s largest city, also benefit from the area’s policy of not taxing individuals. There’s no property tax on homes, as well as no income or inheritance tax.

More: What Taxes Can a Buyer Expect When Purchasing a Home With Bitcoin?

“No personal tax is levied in the U.A.E.,” the report said. “Individuals living and working in the country may be considered a resident of the United Arab Emirates…and obtain a U.A.E. Tax Residency Certificate under certain conditions, including their physical presence in the country for more than 183 days within any 12-month period.”

However, there is a 4% transfer tax levied when a property changes hands, according to the report. While that fee is supposed to be split between the buyer and seller, it’s usually the buyer who foots the bill.

All Dubai residents, both owners and tenants, can expect to pay a municipality tax equivalent to 5% of their home’s annual rental income to fund local services, according to the Dubai local government website.

Click to Read Tax Experts Share Answers and Advice for Readers’ Pressing Tax Questions

Email your questions to editors@mansionglobal.com. Check for answers weekly at www.mansionglobal.com.