Jessica Kate Stephens

Are there any taxes on property transactions in Dubai?

Dubai does not impose traditional property taxes such as annual property tax, capital gains tax, or income tax on rental income. However, there are transaction-related fees that buyers and sellers must pay during a property sale.

Key Fees on Property Transactions in Dubai:

1. Dubai Land Department (DLD) Transfer Fee:

   • 4% of the property value, typically paid by the buyer.

2. DLD Admin Fee:

   • AED 580 for ready property (apartments/offices)

   • AED 40 for off-plan

   • AED 430 for land

3. Registration Fees:

   • Varies based on property value and type (e.g., AED 4,200 for ready properties over AED 500,000)

4. Agency Commission:

   • Usually 2% of the property value, paid to the real estate brokerage.

5. Mortgage Registration Fee (if applicable):

   • 0.25% of the loan amount + AED 290 admin fee

While these are standard one-time fees, there is no ongoing property tax or capital gains tax in Dubai, making it a tax-friendly environment for real estate investors.