Property Taxes in Dubai for Non-Residents in 2026
To calculate the net return on a property investment accurately, you need to account for the full cost of buying, letting or reselling real estate, including taxes and fees. In this article, we explain which expenses to factor in.
Andrey Neginskiy
Real estate expert, CEO of Neginski
At a Glance
In the UAE, property taxes and fees are the same for residents and non-residents. When buying a property, it is important to calculate the full cost of the purchase and the projected return with all additional expenses included. If you do not, you could lose up to 5% of your return when letting or reselling the property.
Mandatory taxes and fees include:
DLD fee (land registration fee) — 4%;
VAT — 5% when buying commercial property;
corporate tax — 9% if the activity is carried out through a company.
Other costs include admin fees, service charges, utilities, agent fees and more. In this article, we break down what needs to be paid, at what stage and in what amount, so the transaction can be completed without mistakes.
Payments When Buying Property in Dubai
In the UAE, property taxes and fees are the same for residents and non-residents. This makes the market more transparent and reduces the risk of overpaying for a unit.
You can buy property in Dubai either by paying in full or on a developer payment plan marketed as 0% interest. To choose the right payment plan, you need to calculate the full amount of the first payment, including the additional registration costs.
Main purchase costs:
1. DLD fee. 4% of the property value. Paid to the Dubai Land Department (DLD) to register the property in the official register.
2. Apartment admin fee. On average, $800–1,500. Applies to apartments only.
3. Mortgage bank fees. These usually include:
application review fee — 1% of the property value;
loss-of-income insurance — 0.5–1%;
title insurance — 0.05%.
4. Agent fee. With Neginski, free on the primary market and 2% of the property value on the secondary market. This includes property selection, transaction support and handover inspection.
The final instalment under a developer payment plan also includes an additional payment: the Title Deed issuance fee for registration of the property, which is about $100.
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Ongoing Costs After Buying Property in Dubai
Once the property is in use, the investor has to cover building maintenance costs and utility bills even if nobody is living in the unit. Otherwise, debt to the management company will start to build up.
The level of ongoing costs depends on several factors:
the location;
the class of the building (comfort, business, premium, elite, deluxe);
the size and format of the property (apartment, villa, duplex);
the number of occupants;
the type of cooling system;
the tariff of the internet provider.
Example of running costs for an 80 m² apartment in a new business-class development:
1. Service charges. From $44 to 88 per m². These cover building maintenance and the reserve fund. In some cases, developers waive service charges for 1–3 years.
2. Utilities. These include several cost items:
water, electricity, waste collection and cooling — $160–180 per month;
internet and television — $130–270 per month.
3. Insurance. Usually costs 0.1–1% of the insured value per year, with the highest rate typically applying to mortgaged properties. Property insurance in the UAE is not mandatory.
On average, an investor spends around $300 per month on regular payments for a one- or two-bedroom apartment.
Costs When Letting Property in Dubai
Additional costs affect not only the purchase price of the property but also net rental yield and the payback period. Below, we explain what you need to calculate so you do not lose up to 5% of your return because of overlooked costs.
1. Costs for short-term rental:
service charges — from $44 to 88 per m²;
utilities — around $300;
furniture — from $11,000;
property management company services — 20–30% of income.
2. Costs for long-term rental:
service charges — from $44 to 88 per m²;
furniture — from $11,000.
With long-term rental, you may find tenants who already have their own furniture and avoid buying it yourself, but the contract value for such a property will usually be lower.
Utilities in long-term rental are paid by the tenant, and there is no need for a property management company, which significantly reduces costs. You can estimate long-term rental yield with Neginski’s Dubai property yield calculator.
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Costs When Reselling Property in Dubai
There is no capital gains tax, gift tax or inheritance tax on property in the UAE, which creates favourable conditions for investors. However, that does not remove the additional costs that arise on resale.
What the seller pays:
developer’s No Objection Certificate (NOC) — USD 140–1,360. This confirms that the developer has no objection to the resale of the property;
agent fee — with Neginski, 2% of the apartment value. This includes finding a buyer and legal support for the transaction.
Andrey Neginskiy
Real estate expert, CEO of Neginski
Example of Net Return from Reselling Property in Dubai
Property price — $500,000
DLD fee — $20,000
Admin fee — $1,200
Title Deed registration fee — $70
Total amount invested in the property: $521,270
Property value growth by the time of handover: +35%.
Resale price: $675,000
Developer’s NOC — $1,000
Agency fee — $13,500
Total resale costs: $14,500
Net return on resale: $139,230
Andrey Neginskiy
Real estate expert, CEO of Neginski
VAT and Corporate Tax on Property in Dubai
Apartments and villas in Dubai can be rented out as an individual without paying any additional tax. Hotel rooms and offices, however, are treated as a business purchase, so they are additionally subject to 5% VAT.
Andrey Neginskiy
Real estate expert, CEO of Neginski
When buying property on a developer payment plan, the VAT amount is apportioned across the payment schedule and paid in instalments together with each tranche.
If the first instalment is 20%, then 20% of the VAT amount is paid with it. If the final instalment is 60%, then 60% of the VAT amount is paid at that stage.
Andrey Neginskiy
Real estate expert, CEO of Neginski
VAT can be refunded, but this does not happen automatically. To reclaim it, the buyer must be registered for VAT with the Federal Tax Authority and submit a refund request through EmaraTax, the UAE’s official online tax portal.
VAT and corporate tax are two different taxes. Unlike VAT, which may apply to both individuals and legal entities, corporate tax is paid only by a company, regardless of its activity.
The corporate tax rate is 9%. No tax is charged on profit up to AED 375,000. If profit is higher, the 9% rate applies only to the amount above AED 375,000.
Example:
company profit — AED 500,000;
AED 375,000 of this amount is not taxed;
the remaining AED 125,000 is taxed at 9%.
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About the Author & the Company
Andrey Neginskiy
Real estate expert, CEO of Neginski
This article was prepared by the Neginski team — an international real estate agency with teams in the UAE, Moscow and Phuket. We support clients at every stage, from clarifying goals and selecting a project to completing the purchase and managing the property.
We work with 300+ developers, get early access to off-market launches, source rare listings and negotiate discounts. More than 30% of our clients come back for repeat purchases. Learn more about us.
Disclaimer
The information in this article is for general guidance only and does not constitute individual legal, investment or immigration advice. Property purchase terms, instalment plans, mortgage financing, rental rules and UAE residency visa options depend on the specific project, developer, bank, property status and the buyer’s individual profile.
UAE laws and regulatory requirements may change. Before making any decisions, we recommend getting personalised advice and confirming the latest terms with the Dubai Land Department (DLD), the developer, the bank or licenced advisers.
Sources
This article is based on publicly available data, Neginski’s analysis and the team’s hands-on experience.
Links:
Dubai Property & Yield Calculator 2026 - Google Sheets
About Us: International Real Estate Agency | Neginski Real Estate
How to buy an apartment in Dubai with installments | Neginski Real Estate
Strategies for Investing in Overseas Property | Neginski Real Estate
FAQ
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The DLD fee, equal to 4% of the property price, is the charge the buyer pays to register the transaction with DLD. This Dubai Land Department fee makes the transaction legally valid and confirms that the property is officially registered in the new owner’s name.
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No. Property taxes, utility tariffs and service charge rates are the same for UAE residents and non-residents.
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Additional costs include service charges, utilities and the fee of a property management company if the unit is rented out. If these are not included in the calculation, the actual yield may differ from the projected one by 2–5% per year.
service charges depend on the project and the class of the development and can range from USD 44 to 88+ per m² per year;
utility costs depend on the type of property — for a one-bedroom apartment, the average is about USD 300 per month;
the management fee is usually 30–40% of the rental income.
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From an investor’s point of view, a developer payment plan marketed as 0% interest is usually more cost-effective because the property price is split into several instalments without interest on the asset itself. A mortgage is more suitable when you are buying completed property for quick move-in, but it increases the cost of the apartment by up to 7% per year.
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No. An apartment in Dubai can be rented out either by an individual or by a legal entity.
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In Dubai, short-term rental is only possible through a property management company. That company must hold a hotel licence. Nothing is required from the investor directly.
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VAT is paid by the property buyer when purchasing a hotel room or an office. The tax can be reclaimed, but this has to be done independently. To do this, you need to register for VAT with the Federal Tax Authority and submit a refund request through EmaraTax, the UAE’s official online tax portal.
