Price Trends
Quality of Life and the Value of a Home
January 17, 2026
Dubai's tax environment is one of the reasons many people choose to live and invest here. There is no personal income tax and no annual property tax. However, buyers and owners should understand the fees and taxes that do apply, especially since the introduction of corporate tax in the UAE.
What buyers pay
- Transfer fee: 4% of the purchase price to the Land Department.
- Registration and trustee fees: administrative costs for the transaction.
- Agency fees: usually 2% plus VAT.
- Mortgage costs: registration and bank fees if financing.
VAT
Residential resales and residential leases are generally exempt. The first sale of a new residential property is zero-rated. Commercial property is subject to the standard rate.
Corporate tax
The UAE introduced corporate tax in 2023. Individuals holding property personally are generally not affected, but property held through companies may be. Owners should take professional advice on their structure.
Home country taxes
Buyers who are tax residents elsewhere may owe tax on rental income or gains in their home country.
Service charges and costs
Owners pay annual service charges, maintenance and, for rented properties, management fees.
Planning for inheritance
Inheritance is an important consideration for property owners in Dubai, particularly expatriates. Without proper planning, the distribution of assets may follow rules that do not reflect the owner's wishes, and the process can take time. Registering a will through the appropriate channels, such as the DIFC Wills Service or local courts, helps ensure that property passes to the intended beneficiaries. Owners with property in several countries should consider how each jurisdiction's rules interact. Holding property through suitable structures may also simplify succession. Taking advice and putting arrangements in place early gives families peace of mind and avoids complications at a difficult time.
Our view
Dubai offers a favourable tax environment, but clarity is essential. We help clients understand the costs and work with tax advisers when structuring matters.
