Are there taxes in Dubai?

Dubai is known for its tax-friendly environment. There is no personal income tax, no capital gains tax, and no inheritance tax for individuals. However, some taxes and fees do apply:

  • Value Added Tax (VAT): A 5% VAT is applied to most goods and services.

  • Corporate Tax: As of June 2023, a 9% corporate tax applies to businesses earning over AED 375,000 annually, with exemptions for many free zone companies.

  • Property Transfer Fee: A 4% one-time fee is charged when transferring property ownership.

  • Municipality Fees: These are included in utility bills and are typically a percentage of rent or property value.

Dubai’s tax system is designed to support economic growth while remaining attractive to expatriates and investors.

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