I live abroad and have been thinking about buying an investment property in the UAE. I have yet to decide which emirate I will focus on but, at the moment, I am favouring Abu Dhabi, Dubai and Ras Al Khaimah.
I would like to find out more about the taxes property owners pay in the UAE and the costs associated with buying a property.
Are overseas property investors liable for property tax and if so, what percentage of the price is it? Are there any other yearly fees potential buyers need to consider, such as annual maintenance fees, and do they vary in different emirates? DA, France
When buying property in the UAE, there are different fees to consider, depending on the type of property and in which emirate it is located.
For secondary market purchases in Dubai, the fees include the following: a 4 per cent transfer fee, a knowledge fee of Dh580 for an apartment or Dh430 for a land plot or villa, a broker's fee of 2 per cent plus VAT and a trustee registration fee of Dh4,000 plus VAT for property worth Dh500,000 and above or Dh2,000 plus VAT if it is priced below Dh500,000.
For mortgage purchases, the Dubai Land Department registration fee is 0.25 per cent of the loan amount. The finance arrangement fee is typically up to 1 per cent of the loan amount (this can vary) while the property valuation fee is between Dh2,500 to Dh3,500 plus VAT.
For off-plan purchases in Dubai, the transfer fee is 4 per cent but many developers are now offering incentives equal to this amount or waiving it completely.
Legal liabilities applicable in your home country would relate to earnings from rental income or any capital appreciation when selling the property in the future
Mario Volpi
For property purchases in Abu Dhabi, the fees are slightly cheaper. The Abu Dhabi municipality fee, which is the transfer fee, is 2 per cent of the purchase price, the brokerage fee is 2 per cent plus VAT and the title deed cost is Dh1,000.
For mortgage purchases, the mortgage registration fee is 0.1 per cent of the purchase price. The finance arrangement fee is usually up to 1 per cent of the loan amount plus VAT. The bank valuation fees are approximately Dh2,500 to Dh3,000 plus VAT.
Buying a property in the UAE does not attract any taxes. However, as a foreign investor, you must consider the legal liabilities that might be applicable in your home country. These liabilities would relate to earnings from rental income or any capital appreciation when selling the property in the future.
It is, therefore, advisable to seek specific information from tax consultants in France before buying a property in the UAE.
The only other fees to consider, aside from monthly utility bills for water, electricity and cooling charges, would be the annual service fees. These vary greatly depending on the area and property. Details of Dubai service charges can be found on the DLD website or on the Dubai Rest app.
There could also be some membership fees to consider for access to amenities, such as the beach or beach club, in some communities.
I own an apartment in Dubai Marina. My tenant has been complaining about a water leak in the bathroom ceiling. It has been confirmed that the leak is from the apartment above.
The tenant is going on holiday in 10 days but she is not giving us permission to enter the premises. The property company that has my power of attorney is helpless. What can I do? AB, Dubai
The most efficient way to stop any further damage from this water leak is to request the building management to temporarily shut the water supply to the affected apartment.
When your tenant is back from holiday, the problem can be properly investigated, assuming that she will then grant you access.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com
Quick%20facts
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
TALE OF THE TAPE
Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm
Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
UAE-based players
Goodlands Riders: Jamshaid Butt, Ali Abid, JD Mahesh, Vibhor Shahi, Faizan Asif, Nadeem Rahim
Rose Hill Warriors: Faraz Sheikh, Ashok Kumar, Thabreez Ali, Janaka Chathuranga, Muzammil Afridi, Ameer Hamza
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
