Is there property tax in Dubai?

There is no annual property tax for owning property in Dubai. There is also no income or company tax derived from rent collected from your own property. Ownership fees consist of a transfer fee from the Dubai Land Department of 4% at the time of purchase (paid by the buyer in the Dubai market), a title deed fee of AED 580, building service fees and a housing fee if you reside in the property.

With respect to VAT, new properties that are sold for the first time within three years of completion are zero rated. Rents of residential property and resale of property are exempt from VAT. For commercial property, both rental and sale are subject to 5% VAT.

If you are thinking of purchasing property via a company, please seek advice from a tax professional as property held by companies may be subject to corporate tax.