Individuals do not pay capital gains or income tax on a Dubai property sale. What you do pay, and where tax can still reach you, is what this guide covers.
Dubai is often described as a place where you keep the whole profit when you sell. For an individual that is largely true: there is no personal income tax and no capital gains tax on a property sale. But the sale is not free of cost, and the picture changes if the property sits inside a company or if you are a tax resident somewhere else.
No personal capital gains tax
An individual selling a property in Dubai does not pay a capital gains tax or an income tax on the gain, according to the market and legal sources we checked. Under the federal corporate tax regime, income of a natural person from real estate where no commercial licence is required is generally outside its scope, as clarified in Cabinet Decision No. 49 of 2023. Read this as the position for a private individual who is not running a property business.
What the sale does cost
- The Dubai Land Department (DLD) transfer fee is 4% of the price. By default it is shared between buyer and seller, but market sources say that in most resale deals the buyer pays all of it. Treat this as negotiable and check what your contract says.
- Agent commission is commonly reported at around 2% plus VAT.
- A developer NOC (no objection certificate) is reported at roughly AED 500 to 5,000 plus VAT, depending on the developer and community.
- Trustee office fees apply to the transfer.
- If the property is mortgaged, the bank issues a liability letter and the mortgage release is reported at roughly AED 1,290 at the DLD for a conventional loan, paid by the seller.
These figures come from broker and market guides, not from an official fee schedule, so verify the current amounts with the DLD or a registered agent before you rely on them.
When a company owns the property
If the property is held through a company, the picture is different. The UAE corporate tax rate is 9% on taxable income above AED 375,000, and companies that buy, lease or trade property are generally taxed on their profits, including gains from selling buildings. Selling through a company can therefore be taxable even where selling personally would not be, and a free zone or licence status may change the treatment. Get this checked by a UAE tax adviser before you structure a purchase.
Where tax can still reach you
The UAE not taxing you does not mean nobody does. If you are a tax resident of another country, that country may tax your worldwide gains, including a sale in Dubai, and the absence of tax in the UAE means there is usually nothing to credit against. Some countries also tax gains for a period after you leave. Check your home rules and any treaty before you sell, not after.
Sale-day checklist
- Confirm who pays the 4% DLD fee in your sale agreement.
- Get the developer NOC and clear any service charge arrears.
- If there is a mortgage, request the bank's liability letter and plan the release.
- Check whether the property is held personally or through a company.
- Ask your home-country adviser how the sale is taxed where you are resident.
FAQ
Do I pay capital gains tax when I sell in Dubai? Not as a private individual, according to the sources we checked. Who pays the 4% DLD fee? By default it is split between buyer and seller, though in practice buyers often pay all of it. Is there tax if my company owns the property? A company can be subject to 9% corporate tax on profits above AED 375,000, so the structure matters. Can my home country still tax me? Yes, if you are tax resident there, so check before you sell. How much are mortgage release costs? Reported at roughly AED 1,290 at the DLD, but verify the current figure.
How we help
We help you understand what a sale really costs and connect you with UAE and home-country tax advisers when a company or cross-border residency is involved. This article is general information, not tax or legal advice, and fees and rules change, so confirm the figures with the Dubai Land Department and a qualified adviser.