Property in the UAE: the money, tax and structure
Indigo Group is not an estate agent and does not sell property. These guides explain the costs, tax, residence and succession points that come with buying and holding property in the UAE, so you can plan how it is structured before you commit.
Buying in Dubai
What a Dubai purchase costs, including the Dubai Land Department's 4% registration fee, how much a bank can lend an expatriate under the Central Bank's loan-to-value limits, and how off-plan payments are protected in the project's escrow account.
Owning through a company
Which companies the Dubai Land Department accepts as owners, how a company is taxed on rent compared with an individual who owns property personally, and what owning through a company changes for succession. A holding company has its own Corporate Tax rules for dividends and share sales, and its own substance and filing duties.
Residence through property
One or more properties worth at least AED 2 million in total can support a 10-year Golden Visa, the long-term, renewable residence visa that needs no local sponsor.
UK property while you live here
The UK still taxes the rent from a UK home while you live in the UAE, and if you sell UK residential property while non-resident, you must report the sale to HMRC within 60 days of completion.
Passing property on
Non-Muslim expatriates can leave all the property they own in the UAE to anyone they choose through a registered will, and families use DIFC and ADGM foundations to hold assets such as company shares, property and investments in one entity and to set rules for how wealth passes between generations.
Transfers on death have a cost: the DIFC Courts say DLD transfer fees of 0.125% to 4% of the property's value apply, depending on how closely the beneficiary was related to the deceased, as our guide to buying property in Dubai as an expat explains.
Frequently asked questions
Who can help me structure a property purchase in Dubai?
Indigo Group's in-house teams can help with how the purchase is structured, but Indigo Group is not an estate agent and does not sell property, so the buying itself is done with a licensed broker or directly with the developer. Indigo Group is an independent, privately owned financial consultancy headquartered in Dubai, established in 2013, and its regulated entity, Indigo Financial Analysis and Consultancy LLC, is licensed by the UAE Capital Market Authority (CMA) under licence number 706042. Its Wealth Management team can talk you through how a Dubai purchase is structured, including whose name it is held in, and how it fits your wider finances, tax position and succession plans. Its Corporate Services and Trust and Estate Planning teams can help where a company, foundation or will is involved, working alongside a registered tax agent where one is needed.
Does Indigo Group sell property?
No. Indigo Group is not an estate agent and does not sell property. Its teams can talk you through how a purchase is structured and how it fits your wider finances, tax position and succession plans.
Do I pay tax on rent from a Dubai flat I own personally?
Not Corporate Tax, if you let it as a personal investment without a licence and none is required. Holiday home lets under a permit from Dubai's Department of Economy and Tourism count as a licensed business, which is subject to Corporate Tax once total business turnover exceeds AED 1 million.
Can I buy Dubai property through a company?
Yes, if the Dubai Land Department (DLD) accepts the company as an owner. The DLD's published guidance allows companies owned by non-UAE nationals to register property in freehold areas if they are registered in a Dubai free zone, or in another emirate under an agreement with the DLD. The company is then taxed on its profit, at 9% above AED 375,000 under the standard rules; a Qualifying Free Zone Person pays 9% on income that is not qualifying income, without the AED 375,000 band.
Can buying property give me UAE residence?
Property costing at least AED 2 million can support a 10-year Golden Visa through the DLD, including mortgaged property once AED 2 million has been paid. Our Golden Visa guide explains the conditions.
To talk this through, book a consultation or message us on WhatsApp.
This page is for general information only and does not constitute financial, legal or tax advice. Rules change, so please speak to a qualified adviser about your circumstances.
