Tax on UAE property. What foreign investors pay, and what they do not.
UAE property tax explained for foreign investors: no personal income tax or capital gains tax for individuals, how corporate tax treats personal rental income, VAT on residential and commercial property, and home-country tax.
The short answer
- The UAE does not levy personal income tax or capital gains tax on individuals.
- Rental income an individual earns from personal real estate investment is outside the scope of UAE corporate tax, according to the Ministry of Finance.
- Property held through a company can be subject to 9% UAE corporate tax on profits above AED 375,000.
- Residential property is generally outside VAT or zero-rated on its first sale; commercial property is subject to 5% VAT.
- Your home country may tax UAE rental income or gains. Take advice where you are tax resident.
Income tax and capital gains
The UAE does not tax individuals on employment income, investment income or capital gains. An individual who buys a property in Dubai, rents it out and later sells it does not pay UAE income tax on the rent or UAE capital gains tax on the sale.
The main purchase cost is the one-off 4% Dubai Land Department fee (see our buying costs guide). There is no annual property tax on residential property in Dubai.
Does corporate tax apply to my rental income?
UAE corporate tax (9% on taxable profits above AED 375,000) took effect in 2023. Individuals are only within its scope when they carry on a business activity with turnover above AED 1 million a year.
The Ministry of Finance has clarified that income from personal real estate investment that does not require a licence — such as rent from an apartment you own as an individual — is not business income for corporate tax purposes. Cabinet Decision No. 49 of 2023 sets out this treatment.
Property held through a company is different: the company’s profits, including rent and gains, can fall within corporate tax.
VAT
| Transaction | VAT treatment (summary) |
|---|---|
| First sale of a new residential building, within three years of completion | Zero-rated |
| Later sales and leases of residential property | Exempt |
| Commercial property (sale or lease) | 5% |
| Agency commission and many service fees | 5% |
Bare land is exempt. VAT rules are detailed, and specific cases — mixed-use buildings, serviced apartments, hotel apartments — can be treated differently.
Your home country
UAE tax treatment is only half of the picture. Many countries tax their residents on worldwide income, so rent and gains from a UAE property may be taxable where you live, and some countries tax citizens wherever they live (the United States is the best-known example). Double tax treaties may apply. Take advice in your country of tax residence before you buy, particularly if you plan to hold the property through a company or trust.
Short-term rentals
Renting short-term in Dubai requires a holiday home permit from the Department of Economy and Tourism and involves tourism fees collected per booking. These are operating requirements rather than income taxes.
This guide is general information, not tax advice.
Frequently asked.
Is there capital gains tax on property in Dubai?
No. The UAE does not tax individuals on capital gains, including gains from selling property.
Is rental income taxed in the UAE?
Not for individuals holding property as a personal investment. The Ministry of Finance has confirmed that such rental income is outside UAE corporate tax. Property held through a company can be taxed.
Is there VAT on buying a home in Dubai?
Residential property is generally zero-rated on its first sale within three years of completion and exempt afterwards. Commercial property is subject to 5% VAT.
Will my home country tax my Dubai property?
Possibly. Many countries tax residents on worldwide income and gains. Take advice where you are tax resident.
Sources
- Khaleej Times — Will 9% corporate tax apply to personal income and investments? Ministry clarifies (17 May 2023)
- WAM — Ministry of Finance announces Cabinet Decision on treatment of natural persons in business activities
- PwC — UAE Cabinet Decision No. 49 of 2023
Reviewed on 2 November 2026. This guide is general information, not legal, tax or financial advice. Fees, rules and approvals are set by the relevant authorities, banks and developers and can change. Returns are not guaranteed.