The highly professional investors and final consumers choose Dubai as the perfect platform for investing in real estate. There are no taxes on real estate property for investor’s payment. There is no provision for taxation of profits from sales and profits from leasing. In the UAE, there is no one-year property tax used in a number of other countries.
Real estate tax in Dubai is a small payment and a paradise for business
In Dubai, a one-time tax is provided for the real estate purchase – sale. This fee for registration in the register forms 4%. It is covered in equal parts by the seller and the purchaser. A fee is determined on the basis of the object’s cost, which is fixed in the purchase and sales contract. At the time when the ownership rights are transferred, the payment is transferred to the land register account. In practice, the amount is often paid by the purchasing party, whether it is an individual or legal entity.
The real estate property’s rent provides the 5% tax of the price fixed in the contract. The fee is paid by the object’s tenant. The amount is automatically transferred to the account of utilities payment subscribed to the tenant. The payment is done in parts, in parallel with the calculations for water and electricity. The tax for commercial real estate is 10%. Payment is similar, as for residential real estate.
BWB specialists assist with registration of the offshore companies with corporate accounts, registration of firms in Free Economic Zones, opening bank accounts. Administrative services are provided.
Simplified taxation benefits
A simple tax for real estate in Dubai eliminates all sorts of annual reporting. Charges are collected automatically, and therefore in the practical turnover the fee is negligible
In Dubai, there are no fees for the real estate inheritance. The degree of family ties does not matter. When the rights to inheritance are transferred, 4% is withdrawn – the traditional fee for registration.
Taxation of real estate is not tied to the property owner’s location. This can be the territory of the UAE or a place outside its borders. There is no harassment for transferring money, earned through the real estate sale abroad, restrictions on the currencies conversion.
According to the current regulations it is allowed to purchase real estate in the emirate by foreign citizens for personal and commercial purposes, leasing. Real estate can be acquired by foreigners in their own name or in the name of an organization that has a registration in the UAE. The taxation procedure is identical for individuals and companies.
Taxation in Dubai has a profitable and attractive model; it is a calm tax haven for almost any business. If you have any questions regarding the real estate taxation in Dubai, you can always contact Business without borders specialists to get all the answers you need.