If you buy in your own name, Dubai charges no income tax on your rent and no tax on the gain when you sell, and the price of a home carries no VAT. What you pay is the 4% DLD fee when the purchase is registered. The 9% Corporate Tax does not apply to an individual investing in property personally. Where you do pay tax is where you are tax resident: the UK taxes its residents on foreign income and gains, and the US taxes its citizens and residents on worldwide income, so rent and gains are declared there.
In this guide7 sections
| In Dubai, in your name | Where you are tax resident | |
|---|---|---|
| Buying | 4% DLD fee and registration fees | No tax; sometimes a foreign asset report |
| VAT | None on the home; 5% on fees and services | Does not apply |
| Letting | No income tax | Declared on your income tax return |
| Selling at a gain | No tax for individuals | The gain is declared |
| Owning | Service charge and utilities, not taxes | Depends on your country |
What taxes do you pay in Dubai on a property?
If you buy in your own name, the list is short. The UAE has no income tax for individuals, so the rent you collect is not taxed in Dubai. Nor do you pay anything in Dubai on a gain when you sell, whether the home is finished or you sell before handover.
What you do pay is fees and VAT on some services:
- The 4% DLD fee when the purchase is registered, plus some fixed registration fees. We go through the numbers in the guide to Dubai buying costs.
- 5% VAT on services such as the agency commission or the DLD trustee office.
The price of the home carries no VAT. The first sale of a new home within three years of completion is zero-rated, and that includes buying off-plan from the developer. Later sales and leases of homes are exempt. Shops and offices do pay 5%.
The service charge and DEWA bills are running costs, not taxes. And the 5% municipality fee on the rent, charged on the DEWA bill, is paid by the tenant, not by you.
The 9% Corporate Tax: when it applies
Since 2023 the UAE has had a tax on business profits, Corporate Tax. It is 0% on profit up to AED 375,000 a year and 9% on anything above that.
An individual is only caught if they run a business in the UAE with turnover above AED 1,000,000 in a calendar year. Investing in property personally does not count as a business, just like wages or personal investments. If you buy in your name and let the home, you do not register for or pay Corporate Tax.
It changes in two cases:
- If you buy through a company. The company is taxed on the profit from rent and sale.
- If the activity needs a licence in your name, for example running a holiday let yourself under a holiday home permit. It can count as a business, and above AED 1,000,000 of turnover a year it falls within Corporate Tax.
In both cases, check with a tax adviser before you buy.
Your tax residence decides where you pay
No tax on rent in Dubai does not mean no tax anywhere. Most countries tax their residents on what they earn around the world, so rent and gains from a Dubai home are usually declared where you live.
Buying a home in Dubai, or holding the Golden Visa, does not make you UAE tax resident by itself. For the UAE, you are tax resident if you spend 183 days or more there in a twelve-month period, or 90 days if you hold a residence permit and also have a permanent home or work in the country. You can then apply for a UAE tax residency certificate. But your home country applies its own rules and may still treat you as resident.
The UAE has double tax treaties with many countries. For property, a treaty usually lets both the country where the property is and the country of residence tax the rent and gains, with the country of residence crediting tax paid abroad. As an individual pays no income tax in Dubai, there is nothing to credit and in practice you pay tax at home on the whole amount.
Dubai property tax from the UK or the US
What you pay in Dubai is the same wherever you come from. What changes is what you declare at home, when, and whether there is a treaty with the UAE. This is the general position; for your own return, use a tax adviser at home.
Dubai property tax from the UK
UK residents normally pay UK tax on all their income, wherever it comes from. Rent from a Dubai home is taxable in the UK and goes on your Self Assessment return, and a gain when you sell is subject to Capital Gains Tax, charged at 18% or 24% depending on your income for gains from 6 April 2026. The UK and the UAE have had a double taxation convention since 2016, but as an individual pays no income tax in Dubai, there is nothing to credit.
Non-residents only pay UK tax on UK income, not on foreign income. Whether you are resident depends mainly on the days you spend in the UK in the tax year, from 6 April to 5 April, under the Statutory Residence Test, and in the year you move the tax year can be split in two. If you plan to move to Dubai, check your position with a UK tax adviser.
Dubai property tax from the US
US citizens and residents report their worldwide income to the IRS, even when they live abroad. Rent goes on your federal return, after expenses and depreciation, and so does a gain when you sell. The US has no income tax treaty with the UAE, but as you pay no tax in Dubai as an individual, you are not taxed twice.
If you open a UAE bank account and your foreign accounts add up to more than $10,000 at any point in the year, you file an FBAR. A home held in your own name is not reported on FATCA Form 8938, but foreign accounts can be. If you live in Florida, there is no state personal income tax, so only the federal return applies.
From anywhere else
What you pay in Dubai is the same. At home, check three things with a tax adviser: whether your country taxes worldwide income, whether it has a treaty with the UAE and whether it asks you to report foreign assets.
A worked example
A home worth AED 1,000,000 bought in your own name and let all year:
| Item | AED | € | $ |
|---|---|---|---|
| DLD fee on registration, 4% | AED 40,000 | €9,695 | $10,892 |
| Example annual rent | AED 70,000 | €16,967 | $19,061 |
| Example annual service charge | AED 12,869 | €3,119 | $3,504 |
| Income tax in Dubai | AED 0 | €0 | $0 |
| Rent minus service charge | AED 57,131 | €13,848 | $15,556 |
Approximate figures, for illustration only.
The AED 57,131, about €13,800 or $15,600, is what goes on your return before any other expenses your country allows. What you pay depends on your tax rate and those expenses. To see what rent you could get by area and unit type, use the rent estimator, and to compare areas, the guide to rental yields by area.
Things to keep in mind
- Decide before signing whether you buy in your own name or through a company, because it changes how the home is taxed.
- Budget for the 4% DLD fee and VAT on fees.
- Keep the SPA, the Oqood certificate, proof of every payment and the title deed: your adviser will need them for the rent and to work out the gain when you sell.
- Check whether your country asks you to report foreign assets, and by when.
- If you plan to move to Dubai, check with an adviser when you stop being tax resident at home.
- If you plan a holiday let, ask first how it is taxed with the licence in your name.
We help you review the numbers for each project, resolve your questions with the developer and keep the purchase documents your adviser will ask for close at hand. Your tax return at home is a job for a tax adviser there, and we recommend having one from the start.
Frequently asked questions
Do I pay tax on rental income in Dubai?
No, if the home is in your own name. The UAE has no income tax for individuals. Rent is declared where you are tax resident.
Do I pay Corporate Tax if I buy in my own name?
No. Investing in property personally does not count as a business. It can apply if you buy through a company, or if the activity needs a licence in your name and turns over more than AED 1,000,000 a year.
Is there VAT on buying a home in Dubai?
Not on the price. The first sale of a new home is zero-rated and later sales are exempt. Fees and some services carry 5%.
Do I pay UK tax on rent from a Dubai property?
Yes, if you are UK resident. Rent goes on your Self Assessment return, and a gain when you sell is subject to Capital Gains Tax.
Do I pay US tax on rent from a Dubai property?
Yes, if you are a US citizen or resident. Rent and gains go on your federal return to the IRS, and you file an FBAR if your foreign accounts exceed $10,000.
Is there a tax treaty between the US and the UAE?
No income tax treaty. As an individual pays no income tax in Dubai, you are not taxed twice on rent or gains.
