One of the most common questions we hear from overseas buyers is some version of: "what's the catch — where are the hidden taxes?" The honest answer is that the UAE genuinely doesn't tax property ownership the way most buyers' home countries do. Here's exactly what does and doesn't apply.
0%
Annual property tax
0%
Personal income tax on rent
0%
Capital gains tax on resale
What genuinely doesn't exist
- No annual property tax. Unlike the US, UK, or much of Europe, there's no yearly government tax simply for owning a property in the UAE.
- No personal income tax on rental income. If you buy to let, rental income you collect as an individual isn't taxed by the UAE. (This is separate from any tax obligation you may have in your own home country — always check that separately with a tax advisor there.)
- No capital gains tax on resale for individual sellers.
What you actually do pay
One-time, at purchase
| Fee | Typical amount |
|---|---|
| Government transfer/registration fee | 4% in Dubai, 2% in Abu Dhabi (varies by emirate) |
| Agency commission | ~2% of purchase price |
| Trustee office / admin fee | AED 2,000–5,000 (flat) |
| Title deed issuance | AED 250–520 (flat) |
| Mortgage registration (if financing) | 0.1%–0.25% of loan amount |
| Property valuation (if financing) | AED 2,500–5,000 (flat) |
All-in, most buyers should budget roughly 6–8% on top of the purchase price in Dubai, or 3–7% in Abu Dhabi, for a cash purchase — slightly more if financing.
Ongoing, annually
- Service charges. Set by the developer or land authority to cover building and community maintenance — typically ranging from roughly AED 10–25 per square foot per year, varying significantly by building, amenities, and area. See our dedicated guide on service charges for the full picture.
- DEWA and utility connection fees — a one-time connection cost plus ongoing usage charges, standard in any market.
What about the new UAE corporate tax? The UAE introduced a 9% corporate tax in 2023 — but this applies to businesses and corporate structures, not to individuals buying and renting out property in their own name. If you're purchasing through a company structure rather than personally, this is worth discussing with a tax advisor, but the vast majority of individual buyers are unaffected.
Where the real cost differences show up
The meaningful cost variable isn't tax — it's the one-time transfer fee, and that's where Abu Dhabi's 2% genuinely undercuts Dubai's 4%. See our full Dubai vs Abu Dhabi cost comparison for the complete breakdown.
This article is for general informational purposes only and does not constitute tax or legal advice. Fee structures are set by UAE and emirate-level authorities and are subject to change. This article does not address tax obligations you may have in your own country of residence or citizenship — always consult a qualified tax advisor there regarding your personal situation.