Dubai Property Taxes and Fees for Foreign Buyers

Dubai charges a one-off 4% transfer fee and smaller registration costs, but no annual property tax and no capital gains or income tax on property for individuals. Owners pay service charges, occupiers pay a housing fee through DEWA, and your home country may tax your income or gains.

Updated 27 October 2026 · 1 min read

In Dubai you mainly pay once (the 4% transfer fee and registration costs) and then yearly service charges. Individuals do not pay annual property tax, capital gains tax or income tax on Dubai property, but your home country may tax you.

What you pay

Charge When Amount
DLD transfer fee At purchase 4% of the price
Trustee and title deed fees At purchase A few thousand dirhams, plus VAT on service fees
Mortgage registration At purchase, if borrowing 0.25% of the loan plus admin
Service charges Yearly Per square foot, set for each building
Housing fee Monthly, via DEWA A percentage of the annual rent (or rental value for owner-occupiers)
VAT Commercial property 5% on commercial sales and leases

What you do not pay (as an individual)

  • No annual property tax
  • No personal income tax on rental income
  • No capital gains tax when you sell
  • No inheritance tax in the UAE

Watch for

  • Companies: owning through a company can bring UAE corporate tax and VAT obligations.
  • Home-country tax: many countries tax worldwide income and gains, or have their own reporting rules.

Common mistakes to avoid

  • Assuming “tax-free in Dubai” means tax-free everywhere.
  • Buying through a company without tax advice.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

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Common questions

Is there property tax in Dubai?

There is no annual property tax. Buyers pay a one-off 4% transfer fee, and owners pay yearly service charges.

Do foreigners pay capital gains tax when selling Dubai property?

Individuals do not pay UAE capital gains tax on property, but your home country may tax the gain.

What is the DEWA housing fee?

A municipality fee added to DEWA bills, calculated as a percentage of the annual rent or, for owner-occupiers, of the property's rental value.

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