The UAE stands out as a jurisdiction with an exceptionally favourable tax regime. Unlike most international markets, the overall tax burden is significantly reduced, with some recurring taxes absent altogether.
Let’s explore the applicable property tax rates for international buyers and the additional fees associated with purchasing real estate in the Emirates.
The UAE continues to position itself as one of the world’s most attractive jurisdictions for investors, offering a highly favourable tax environment. Unlike many international markets, property ownership in the UAE is not subject to conventional real estate taxes, significantly reducing the overall tax burden.
Instead, taxation in the real estate sector is largely transaction-based, covering property transfers, rental-related levies, and VAT on commercial real estate.
According to the Henley Private Wealth Migration Report 2024, the UAE has been ranked the world’s top destination for high-net-worth migration for the third consecutive year. In 2024, approximately 6,700 millionaires relocated to the country. One of the key factors driving this trend, as highlighted by analysts, is the UAE’s zero personal income tax policy.
Tax Implications of Buying Property as an Expat in the UAE
Tax rates in the UAE vary across emirates, with Dubai typically commanding higher levies, reflecting its status as the primary destination for international buyers. The emirate has long positioned itself as a global hub, offering a refined infrastructure tailored to discerning investors — from luxury residences to corporate headquarters, as well as world-class international schools and universities.
Transfer Fees
The transfer fee, payable upon the transfer of property ownership from seller to buyer, is a mandatory charge collected by the respective land department of the emirate — such as the Dubai Land Department (DLD) or Abu Dhabi Municipality.
Although not classified as a tax, the transfer fee constitutes a significant transactional cost when purchasing real estate in the UAE.
The fee is calculated based on the property’s sale value as stipulated in the purchase agreement.
