Tax guide for the United Arab Emirates: taxes

What you need to know

1. Do I pay tax on rent from a Dubai home?

   The UAE does not levy income tax on individuals, so a non-resident who owns a Dubai home pays no UAE tax on its rent; rent from property held as an individual's investment and not run under a business licence is also outside Corporate Tax (u.ae Taxation; Federal Tax Authority guide CTGREI1 on Cabinet Decision No. 49 of 2023).

   Where this comes from

   • UAE Government portal: Taxation, read 26 October 2026

2. Does a tenant hold back any tax from rent?

   The UAE has no withholding tax on rent paid by a tenant to an individual landlord, resident or not, because individuals' income is not taxed (u.ae Taxation; Federal Tax Authority guide CTGREI1).

   Where this comes from

   • UAE Government portal: Taxation, read 26 October 2026

3. Is there tax on the gain when I sell?

   An individual who sells a Dubai home held as a personal investment pays no UAE tax on the gain, because the UAE does not tax individuals' income and an individual's income from selling real estate outside a licensed business is excluded from Corporate Tax (u.ae Taxation; FTA guide CTGREI1 on Cabinet Decision No. 49 of 2023).

   Where this comes from

   • UAE Government portal: Taxation, read 26 October 2026

4. Is there a yearly property tax on a Dubai home?

   Dubai levies no yearly property tax on home owners: the UAE government's tax page lists no tax on individuals' income and no property tax, and the Land Department's fee schedule charges only on registration events such as sales, mortgages and leases (u.ae Taxation; Executive Council Resolution No. 30 of 2013).

   Where this comes from

   • UAE Government portal: Taxation, read 26 October 2026

5. Who pays Dubai's 5% housing fee on rent?

   In Dubai a tenant pays the Dubai Municipality housing fee of 5% of the yearly rent, added in monthly parts to the electricity and water (DEWA) bill and separate from VAT (UAE Government portal, Leasing a property; Dubai Land Department FAQ).

   Where this comes from

   • UAE Government portal: Leasing a property in the UAE (Dubai section), read 26 October 2026

6. Is there value added tax (VAT) on renting out a home?

   In the UAE leasing a residential building, other than its first supply, is exempt from VAT, while leases of commercial property carry 5% VAT (Federal Tax Authority, VAT Real Estate Guide VATGRE1).

   Where this comes from

   • Federal Tax Authority: VAT Guide, Real Estate (VATGRE1), read 26 October 2026

7. Is holiday-home letting taxed as a business?

   The Federal Tax Authority treats a Dubai Department of Economy and Tourism holiday-home permit as a licence, so an individual's holiday-home letting is a business for Corporate Tax, taxable only if the person's total business turnover exceeds AED 1 million in a calendar year; an Ejari registration is not a licence (FTA guide CTGREI1, sections 3 and 4.2.2.3).

   Where this comes from

   • Federal Tax Authority: Corporate Tax Guide, Real Estate Investment for natural persons (CTGREI1), October 2024, read 26 October 2026

8. Is there tax when a home is passed on?

   No inheritance, estate or gift tax appears in the UAE's official list of taxes, and Federal Decree-Law 41 of 2022 lets non-Muslim residents follow the law of their home country or the UAE civil personal status rules for wills and inheritance (u.ae Taxation; u.ae Other taxes; u.ae personal status for non-Muslims).

   Where this comes from

   • UAE Government portal: Taxation, read 12 October 2026

9. Who inherits a Dubai home if there is no will?

   Inheriting a home in Dubai: With no will, across the UAE since 1 February 2023, for people who are not Muslim: half goes to the husband or wife and half to the children equally, sons and daughters alike; with no children, to the parents, then to brothers and sisters. A foreigner’s heirs may ask for the law of their own country instead. A will must be registered at the court.

   Where this comes from

   • Abu Dhabi Judicial Department: Civil Family Court (Civil Wills and Inheritance FAQ), read 8 October 2026

10. Is there tax on sending money out of the Emirates?

    The UAE places no tax on sending money abroad and states that individuals and investors may freely repatriate their profits in full (u.ae Other taxes; Ministry of Economy and Tourism).

    Where this comes from

    • UAE Government portal: Other taxes, read 12 October 2026