25/05/2023
Taxes
In the USA, when it comes to property taxes, as an investor, you can expect to pay even up to 2.5% of the property cost yearly, depending on specific state law. However, this is not the case in Dubai, as the country does not impose any tax on real estate properties. Rather the state charges a 4% transfer fee from property transactions as the main form of generating revenue from the property.
Additionally, Dubai charges tenants a municipality tax. This tax is 5% of the annual rent for residential tenants and 10% for commercial tenants. The municipality tax, though charged annually, is broken down into monthly installments for ease of payment — the minimum amount payable is AED 450 ($122.5) yearly.