We are a five-member family living in Dubai. Our tenancy contract expires on February 28. We sent an email to the landlord about vacating the apartment precisely 31 days before the expiry of our contract.
However, the landlord says they will charge us a penalty of two months’ rent for not notifying them 60 days prior to the expiry of the tenancy contract. The terms and conditions of our contract state that the tenant has to pay two months’ worth of rent if they fail to inform the landlord about vacating the premises 60 days prior to contract expiry.
We have been living in this building for the past three years without any lapse and have never defaulted on our rent payment. Even when we served notice to vacate, we were in ongoing verbal negotiations with the landlord about renting one of their properties for a reduced amount. We are even ready to move out of the apartment as early as on February 25 before the lease ends. What can we do in this situation? SH, Dubai
I have previously written about the notice required to be served by tenants who are not renewing their contracts. Law 33 of 2008 amended into Law 26 of 2007 is the law that governs the relationship between landlords and tenants. In the amended law, it did away with the need for a tenant to give the previously required notice to a landlord when not renewing.
I do stress, however, that if you signed a rental contract that states you require to give 60 days’ notice prior to the expiry of the contract for non-renewal, then you are legally bound by this clause and, therefore, if you do not give the required notice, you are liable for the two-month rent as penalty (in your case).
If you disagree with this penalty amount, you are at liberty to file a case at the Rental Dispute Settlement Committee in Deira, Dubai. I cannot confirm which way the judge will decide, as the law in the UAE is not set on precedent but on a case-by-case basis. The judge may rule in your favour, citing the amended Law 33 of 2008, or may decide that your rental contract (which you signed) will take precedent. Only the judge can rule on this.
I understand that you are trying to find a better apartment by negotiating with the landlord’s team, however, the two are separated.
If you disagree with this penalty amount, you are at liberty to file a case at the Rental Dispute Settlement Committee in Deira
The choice is now yours, either pay the penalty and move on or if you don’t and decide to fight the case, there are costs and time involved. In the event you win, you are likely to be awarded costs.
Perhaps, a better solution would be to try and negotiate with the landlord in order to pay only one month’s rent as penalty given you have served a one-month notice. This way, you are at least attempting to remain cordial with your landlord rather than taking him to court.
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
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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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Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
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