Understanding property tax in Dubai

1. Understanding Understanding PROPERTY TAX PROPERTY TAX in Dubai, UAE in Dubai, UAE

2. Investing in Dubai’s real estate market is a popular choice for both local and international investors, thanks to its tax-friendly environment and booming property sector. However, nuances of Dubai property tax is essential for making informed decisions. While the emirate does not levy a traditional real estate tax, investors should be aware of other financial obligations such as VAT on property in Dubai, registration fees, and maintenance charges. This guide breaks down the key aspects of real estate tax in Dubai, helping you navigate the legal and financial landscape before making your next property investment. understanding the

3. UNDERSTANDING UNDERSTANDING The Property Tax System in Dubai The Property Tax System in Dubai Thinking of buying a property in Dubai? Dubai is one of the most tax-friendly places in the world when it comes to real estate. Unlike many other big cities, you don’t have to pay a yearly property tax just for owning a home or apartment. That’s one big reason why so many people love investing here. But wait — while there’s no yearly tax, there are a few one- time costs you should know about: When you buy a property, you’ll need to pay a 4% fee to the Dubai Land Department. It’s kind of like a transfer fee for making the deal official. You only pay this once, at the time of purchase.

4. BENEFITS OF BENEFITS OF DUBAI’S PROPERTY TAX SYSTEM DUBAI’S PROPERTY TAX SYSTEM One of the most compelling reasons investors are drawn to Dubai’s property market is its tax-friendly framework. The city offers a uniquely favourable environment for both residential and commercial property buyers, contributing to its status as a global investment hub. Here are some of the key benefits of the Dubai real estate tax system: 1. No Annual Property Tax 1. No Annual Property Tax 2. Zero Dubai Real Estate Corporation Tax 2. Zero Dubai Real Estate Corporation Tax 3. No Capital Gains Tax 3. No Capital Gains Tax 4. Transparent One-Time Fees 4. Transparent One-Time Fees 5. Simplified Commercial Property Tax in Dubai 5. Simplified Commercial Property Tax in Dubai 6. Investor Confidence and Market Stability 6. Investor Confidence and Market Stability

5. TYPES OF TYPES OF PROPERTY-RELATED FEES IN THE UAE PROPERTY-RELATED FEES IN THE UAE Investing in real estate in the UAE involves several property- related fees that buyers, sellers, and landlords should be aware of. Although there is no direct Dubai property tax like in other global cities, there are still several mandatory charges to consider: 1. VALUE ADDED TAX (VAT) ON UAE PROPERTY TAX 1. VALUE ADDED TAX (VAT) ON UAE PROPERTY TAX 2. DUBAI LAND DEPARTMENT (DLD) FEES 2. DUBAI LAND DEPARTMENT (DLD) FEES 3. REGISTRATION FEES 3. REGISTRATION FEES 4. AGENCY COMMISSION 4. AGENCY COMMISSION 5. SERVICE CHARGES AND MAINTENANCE FEES 5. SERVICE CHARGES AND MAINTENANCE FEES 6. MORTGAGE REGISTRATION FEE 6. MORTGAGE REGISTRATION FEE

6. COMMON COMMON MISCONCEPTIONS MISCONCEPTIONS About Dubai Real Estate Taxes About Dubai Real Estate Taxes Dubai’s real estate market has gained global recognition for its investor-friendly tax regime, but with popularity comes confusion. Many buyers and potential investors misunderstand how Dubai property tax and related charges work. Below, we separate fact from fiction and break down the real costs of property ownership in the emirate. MYTH 1: DUBAI HAS ZERO TAXES ON REAL ESTATE. MYTH 1: DUBAI HAS ZERO TAXES ON REAL ESTATE. MYTH 2: NO VAT APPLIES TO ANY PROPERTY IN DUBAI. MYTH 2: NO VAT APPLIES TO ANY PROPERTY IN DUBAI. MYTH 3: THERE ARE NO HIDDEN REAL ESTATE TAXES. MYTH 3: THERE ARE NO HIDDEN REAL ESTATE TAXES. MYTH 4: CORPORATIONS PAY THE SAME TAXES AS INDIVIDUALS. MYTH 4: CORPORATIONS PAY THE SAME TAXES AS INDIVIDUALS.

7. COMMERCIAL PROPERTY TAX IN DUBAI VS. COMMERCIAL PROPERTY TAX IN DUBAI VS. DUBAI REAL ESTATE CORPORATION TAX DUBAI REAL ESTATE CORPORATION TAX When investing in Dubai’s real estate market, it’s important to distinguish between commercial property tax and real estate corporation tax. While both relate to property ownership and transactions, they apply in different contexts and under different legal frameworks. 1. COMMERCIAL PROPERTY TAX IN DUBAI 2. DUBAI REAL ESTATE CORPORATION TAX Despite the term “tax,” Dubai doesn’t impose a traditional recurring property tax, even on commercial real estate. However, there is an indirect tax that functions similarly: This refers to the potential application of UAE’s corporate tax on companies involved in property ownership or investment.

8. Navigate Dubai’s Property Tax System Navigate Dubai’s Property Tax System WITH SHURAA TAX WITH SHURAA TAX In conclusion, Dubai offers one of the most attractive and transparent property tax environments in the world. With no annual Dubai property tax, zero capital gains tax, and no Dubai real estate corporation tax for most investors, the emirate remains a hotspot for real estate investment. However, understanding associated charges such as VAT on property in Dubai, registration fees, and service charges is crucial for making informed decisions. At Shuraa Tax, we specialise in guiding property investors through Dubai’s tax and compliance framework with clarity and confidence. From clarifying your real estate tax obligations in Dubai to helping structure corporate ownership effectively, we’re here to help every step of the way.

9. CONTACT US Phone +(971) 44081900 Email info@shuraatax.com Website shuraatax.com Location 601 Sheikh Zayed Road, 6th Floor, Aspin Commercial Tower – Dubai