Are there property taxes in Dubai?

Dubai does not impose annual property taxes, making it highly attractive for property investors.

No Annual Property Tax

Unlike most countries, Dubai has NO:

• Annual property tax
• Wealth tax
• Capital gains tax on property sales
• Inheritance tax

Fees and Charges

While there's no property tax, there are some fees:

One-Time Registration Fees

• 4% of property value (2% buyer, 2% seller) paid to Dubai Land Department
• Trustee office fees (typically AED 4,000)
• Mortgage registration fee (if applicable): 0.25% of loan amount

Annual Service Charges

Property owners pay annual maintenance fees to homeowners associations:

• Apartments: AED 10-25 per square foot
• Villas: AED 5-15 per square foot
• Covers common area maintenance, security, amenities

Utility Connection Fees

• DEWA (Dubai Electricity and Water Authority) connection deposit
• Housing fee: 5% of annual rent (for tenants) or estimated rental value (for owners)

If Renting Out Property

• Rental income is NOT taxed
• No income tax on rental earnings
• Full rental income is yours to keep

When Selling Property

• No capital gains tax
• Only pay standard 2% DLD transfer fee

This tax-free environment makes Dubai one of the most profitable markets for property investment globally.