Question: My landlord recently served me with an eviction notice. The reason for the eviction is that the landlord wants to sell the property pursuant to Article 25.2 (d) of Law 26 (2007) Amendment 33 (2008).
Article 25.2 states that the notice should be given upon expiry of the contract, which in my case is July 7, 2023. However, the eviction notice states that it is effective on the date it was served, which is March 1.
Is the eviction notice valid? Will I need to move out within 12 months from March 1 or do I need to refer this to the Real Estate Regulatory Agency and challenge the validity of the notice on the basis that it does not comply with Article 25.2?
I appreciate that the matter of three months may be a small issue, but given increasing rents at the moment, this could amount to an additional Dh25,000 in this year’s budget, which I had not accounted for. I would appreciate your thoughts on this. GA, Dubai
Answer: It is true that the law states that a 12-month notice of eviction should be served upon expiry of the tenancy agreement.
However, some judges at the Rent Dispute Settlement Committee have allowed eviction notices to be served at any time.
The only way to check the validity of your situation would be to file a case at the RDSC and hope your judge follows the exact wording of the law.
The law is not set on precedent, so any result is at the discretion of the judge of the day.
Therefore, if filing a case is too drastic or time-consuming, you will have no other alternative but to try to negotiate with the landlord or, if not him, the new owner.
Q: Do you think it is fair to landlords to turn annual rental agreements into an indefinite lease at a fixed price?
Will this not distort the market by raising rents higher than they would otherwise be, due to the impact on available supply by artificially suppressing prices on existing tenancies?
Do rental controls generally result in a bad housing stock? PC, Dubai
A: Technically, all rental agreements are for an indefinite period, despite the contract having a yearly validity.
The landlord has to renew assuming the tenant wishes to do so. That said, the real question would then be the fixed-price aspect.
While this gives clarity to both the tenant and landlord, this would only work in a stable market, one where there is little to no price movement.
However, we all know this never happens because the property market is forever moving either up or down.
Within this movement, we have winners and losers, depending on where the market is heading and, as such, there will be the need to adjust agreements from the perspective of a landlord or tenant.
Dubai has been running rental controls for many years now with the introduction of the Rera rental calculator, which really only works when the market is rising.
When the rental market is in decline, tenants do not use the calculator because they rely solely on the open rental market to determine whether they renew or move to potentially cheaper properties elsewhere.
Dubai is currently experiencing an imbalance in housing stock, especially properties put up for sale, compared with the population growth, and rental prices are also rising for new tenancies but are restricted to the controls of the Rera rental calculator for existing tenants.
Generally speaking, the residential rental market is healthy, although weighted towards landlords at the moment.
Mario Volpi is the sales director at AX Capital. He has worked in the property sector for 39 years, in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to m.volpi@axcapital.ae
The five pillars of Islam
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
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Population: 44.13 million
Armed conflict in Donbass
Russia-backed fighters control territory
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
