When buying property in Dubai, tax obligations are relatively low compared to other countries. The main aspects of taxation to look out for include no tax on income from sale and rental property, a 4% sales tax (usually split equally between buyer and seller, although this may be stated in the sales contract) and a registration fee of AED 4,000 (approximately USD 1,100).
Property owners must also pay annual utility charges for the maintenance of the buildings and grounds. Although the tax liability in Dubai is relatively low, we recommend that you consult with our managers prior to purchase to ensure that you understand all tax and legal aspects of the transaction.