# Property Taxes & Fees in Dubai 2026 — What You Actually Pay (and What Doesn't Exist)

> Dubai has no annual property tax, no capital gains tax and no income tax on rent for individuals. What you do pay: 4% DLD transfer fee, ~6–7% total buy-side costs, 5% housing fee on rent, service charges. Every fee in one table.

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Dubai · Guides · Taxes & fees

# Property taxes in Dubai — the full picture

Dubai's pitch is «no property tax» — and it's mostly true: no annual tax, no capital gains, no tax on rental income for individuals. What replaces them is a set of one-off fees you pay once at purchase. Here is every dirham, in one honest table.

Every fee, one table

🛡 RERA-licensed 📊 Fees from DLD schedules ⏱ Reply within 1 hour

0%

annual property tax — doesn't exist

4%

one-off DLD transfer fee

~6–7%

total buy-side costs, resale

5%

housing fee on annual rent (via DEWA)

Updated 20 July 2026 · By [WIZI Advisory Team](https://wizipremium.com/about.html) · RERA ORN 60234

Quick answer

## You pay once when you buy. Then almost nothing — except running costs.

Dubai taxes the transaction, not the ownership. When you buy, you pay a one-off 4% DLD transfer fee plus fixed admin fees, a trustee-office fee, and (on resale) a ~2% agent commission — realistically 6–7% on top of the price , or ~5% on off-plan bought directly from a developer. After that there is no annual property tax, no capital gains tax when you sell, and no personal income tax on rent . What you do keep paying: service charges to maintain the building (AED/sqft, varies by community), the 5% housing fee on annual rental value billed through DEWA, and utilities. Corporate tax (9%) only touches real estate if you run it as a licensed business — personal buy-to-let by an individual is excluded.

One-off, at purchase

## Every fee at purchase — the real all-in table

For a resale apartment bought with cash, budget ~6–7% on top of the agreed price. Off-plan direct from a developer usually skips the agent commission and NOC, so ~4.5–5%:

| Fee | How much | Notes |
|---|---|---|
| DLD transfer fee | 4% of price | The core «tax». By custom paid by the buyer, though the law allows splitting |
| DLD admin fee | AED 580 | Apartments and villas; AED 430 for land |
| Knowledge + innovation fees | AED 10 + AED 10 | Added to most DLD payments |
| Title deed issuance | AED 250 | Per deed |
| Registration trustee office | AED 4,200 / AED 2,100 | Above / below AED 500k price; + 5% VAT on the fee |
| Agent commission (resale) | 2% + 5% VAT | Off-plan direct from developer: usually none |
| Developer NOC (resale) | AED 500 – 5,250 | Set by the developer; seller often covers it — negotiate |
| Mortgage registration | 0.25% of loan + AED 290 | Only if financing; plus bank arrangement ~1% and valuation AED 2,500–3,500 |
| Oqood registration (off-plan) | 4% of price | Same 4%, registered against the sale contract before handover |

Fee schedule: Dubai Land Department / registration trustee tariffs, 2026. On a median AED 1.3M resale apartment the all-in extras come to roughly AED 85–95k.

Recurring, per year

## What you pay while you own — none of it is a tax on the asset

Ownership costs are operational, not fiscal. The only government-flavoured line is the housing fee:

| Cost | How much | Who pays |
|---|---|---|
| Housing fee («municipality fee») | 5% of annual rental value ÷ 12, monthly via DEWA | The occupant — tenant if rented, owner if you live in it |
| Service charges | AED/sqft per year, set per community (Mollak-audited) | Owner. Verify the exact rate in the DLD service-charge index before buying |
| DEWA utilities + district cooling | Usage-based | Occupant; chiller-free buildings shift cooling cost to the landlord |
| Short-term rental (if you list it) | DET permit from ~AED 1,520/yr + Tourism Dirham AED 10–15/bedroom/night | Host — see our Airbnb economics page |
| Rental income tax | AED 0 | No personal income tax on rent for individuals in the UAE |

The honest two columns

## What Dubai doesn't charge — and what it does

### Doesn't exist in Dubai

- Annual property tax on the value of your home — none
- Capital gains tax when you sell — none for individuals
- Personal income tax on rental income — none
- Inheritance/estate tax — none (but succession rules apply: register a DIFC Will — see our guide)
- Wealth tax, stamp duty beyond the 4% DLD fee — none

### Exists — plan for it

- 4% DLD fee + fixed fees at purchase — the real «tax», paid once
- Housing fee: 5% of annual rental value, billed monthly via DEWA
- Service charges: the biggest recurring line — check the community rate before you buy
- VAT 5% on agent commission and on commercial property
- Corporate tax 9% — only if you hold/trade property as a licensed business, not as a private individual

VAT

## VAT in one paragraph

Residential property is VAT-friendly by design: rent of residential property is exempt, the first sale of a new home within 3 years of completion is zero-rated (0%), and subsequent resales are exempt. You will meet the 5% VAT only on services around the deal — agent commission, trustee fee, conveyancing — and on commercial property, where both sale and rent carry 5%. Bare land is exempt. Practical effect: on a typical resale, VAT adds ~0.1% of the price (the tax on the commission), not 5% of the property.

Your home country

## The tax you might still owe — at home

Dubai not taxing you doesn't mean nobody does. Most countries tax their tax residents on worldwide income — including Dubai rent — and some tax capital gains on foreign property. The UAE has 140+ double-taxation treaties that usually let you credit what you'd otherwise pay twice; whether a treaty covers your case depends on your residence country and your paperwork. Our honest rule: settle your Dubai fee math with us, and your home-country declaration with a licensed tax adviser in that country — before you buy, not after.

FAQ

## Common questions

**Is there an annual property tax in Dubai?**

No. Dubai charges no recurring tax on owning property — no council tax, no cadastral tax, no wealth tax. The recurring costs are operational: service charges (AED/sqft, set per community) and the 5% housing fee on annual rental value billed through DEWA. The state takes its share once, at the transaction: the 4% DLD transfer fee.

**Do I pay tax on rental income in Dubai?**

Not as a private individual — the UAE has no personal income tax, so rent from your Dubai apartment is paid to you gross. The 9% corporate tax applies only if you hold or manage property through a licensed business activity. Your home country may still tax that rent if you are its tax resident.

**Is there capital gains tax when I sell property in Dubai?**

No — individuals pay no capital gains tax in the UAE. Your exit costs are transactional: the buyer's side pays the new 4% DLD fee, you typically pay the agent commission (2% + VAT) and the developer NOC if applicable. Check your home country's rules on foreign capital gains.

**What exactly do I pay when buying property in Dubai?**

On resale with cash: 4% DLD + AED 580 admin + AED 250 title deed + trustee AED 2,100–4,200 + agent 2%+VAT + developer NOC AED 500–5,250 — all-in ~6–7% of price (≈AED 85–95k on a median AED 1.3M apartment). Off-plan direct from a developer: usually just the 4% (via Oqood) + admin — ~4.5–5%. With a mortgage add 0.25% of the loan + AED 290 + bank fees.

**What is the Dubai housing fee (municipality fee)?**

5% of the annual rental value of the property, split into 12 monthly instalments on the DEWA bill. Tenants pay it where the unit is rented; owner-occupiers pay it based on the RERA rental index value of their home. It funds municipal services and is the closest thing Dubai has to a recurring property levy.

**Does the 9% UAE corporate tax apply to my Dubai apartment?**

Not if you own it personally. Cabinet decisions exclude personal real-estate investment income of natural persons from corporate tax — no license, no tax, regardless of how many units you rent out long-term. The 9% enters only when property activity is run through a licensed business or company structure. If you hold via a company, get structuring advice first.

**What is the full cost of owning property in Dubai?**

One-off at purchase: 4% DLD transfer fee, ~AED 4k admin/trustee, 2% agency on resale deals. Annually: service charges (the main running cost — see the service charge index), DEWA utilities and, for landlords, 5% of rent as the housing fee billed through DEWA. There is no annual property tax, no capital gains tax and no tax on rental income in the UAE.

Keep reading

## Related money guides

[Market report H1 2026 →](https://wizipremium.com/dubai-real-estate-market-report.html) [Price index — 97 areas (DLD) →](https://wizipremium.com/dubai-property-price-index.html) [How to buy, step by step →](https://wizipremium.com/guides/how-to-buy-property-dubai.html) [Golden Visa via property →](https://wizipremium.com/invest/golden-visa.html) [Service charges by community →](https://wizipremium.com/dubai-service-charges.html)

### Get the full cost of ownership, in writing

Tell us the budget and area — we'll send a line-by-line breakdown for a specific unit: 4% DLD transfer fee, agency and trustee fees, annual service charges and the 5% housing fee, so the number you plan around is the real one.