Tax and running costs, without the guesswork.

The UAE side: no personal income tax

The UAE levies no personal income tax, as stated on the official government portal u.ae. As an individual owner, you do not file a personal income tax return in the UAE on the rent you receive from your Dubai property.

That does not mean owning a property in Dubai has no costs. There are one-off fees at purchase, and regular charges while you own it. And, crucially, the tax rules of the country where you live continue to apply.

At purchase: the DLD fee

The main cost at purchase is the Dubai Land Department transfer fee: 4% of the price, plus administrative and registration fees. For an off-plan purchase, it is paid when the sale is recorded in Oqood; for a ready property, at the transfer of the title deed.

On the agency side, for an off-plan purchase, the agency commission is paid by the developer, and you pay the developer's price. For a resale, the agency commission is usually 2% of the price. In every case, I confirm the full cost in writing before you commit. My guide to Dubai purchase costs sets them all out.

While you own it: service charges

Every owner pays annual service charges to the owners' association, covering the maintenance of common areas, security, cleaning, shared facilities and building insurance. In Dubai, these charges are approved by RERA and published in the RERA Service Charge Index, and owners' associations are managed through the Mollak system.

Before buying, I check the published service charges for the building, because they weigh directly on your net income. On off-plan projects, I look at the charges of comparable buildings by the same developer. You will find more in my guide to service charges in Dubai.

Renting out: Ejari and holiday home permits

Long-term leases are registered through Ejari, the Dubai Land Department's lease registration system. Registration gives the lease its official standing for both owner and tenant.

If you prefer short-term or holiday rentals, the property needs a holiday home permit from Dubai's Department of Economy and Tourism (DET). Many owners abroad entrust either type of letting to a licensed management company. My guide to renting out your Dubai property compares the two approaches.

• One-off: DLD transfer fee of 4% of the price, plus administrative fees
• Resale only: agency commission, usually 2% of the price
• Annual: service charges, as published in the RERA Service Charge Index
• Letting: Ejari registration for long-term leases, DET permit for holiday homes
• Optional: property management fees if you delegate letting

Your country of residence has the final word

The absence of personal income tax in the UAE does not settle your tax position. Rental income and capital gains from a Dubai property may still be taxable in the country where you are tax resident, under its own rules and the tax treaties between states.

For a Moroccan living in the UK, that means UK rules; in Canada, Canadian rules; in Morocco, Moroccan rules; in the Gulf, the rules of that country. Reporting obligations for foreign assets or accounts can also apply. These rules differ widely, and they evolve.

My position is clear: a tax adviser in your country validates your situation before you buy. I can provide every document they need, from the title deed to the lease and the service charge statements.

Planning for the long term

Think beyond the purchase. How will rental income be received and declared? How will you document costs? What happens when you resell, or when the property passes to your children? These are questions to raise early with your adviser, not at the last minute.

Keeping a clean file helps with all of them: purchase contract, DLD receipts, transfer confirmations, service charge statements, Ejari lease and management reports. If you plan to sell one day, my guide to selling your Dubai property from abroad explains the process.

Points to check with your adviser

A short meeting with a tax adviser in your country of residence, before you buy, is one of the best investments you can make. Bring the main facts of the purchase so that the discussion is concrete.

• How rental income from a property abroad is treated where you live
• How a future capital gain on resale would be treated
• Any reporting obligations for assets or bank accounts held abroad
• How joint ownership with a spouse or relatives affects the picture
• Which documents you should keep each year from Dubai

Let's build a clear picture of your costs

I give every client a written summary of purchase costs and running charges for the specific property, so that they and their tax adviser work from the same, accurate information.

Book a free 30-minute call to go through yours. You can also read my page for Moroccans abroad, or see how I support buyers on the services page.