Capital Gains Tax in the UAE: What sellers need to know

One of the strongest arguments for investing in Dubai is zero capital gains tax for individuals. Let's break down what you actually pay when selling, how it differs from Corporate Tax, and how it stacks up against Europe.

Key Facts

• Capital Gains Tax для физлиц в ОАЭ = 0%
• Corporate Tax 9% — только для юрлиц с коммерческой прибылью >AED 375,000
• При продаже платите: ~2% комиссии агенту + AED 4,000–5,000 DLD сборов
• Налога на наследование в ОАЭ нет
• DLD Transfer Fee 4% платится один раз при покупке, не при продаже

Calculating the true cost of sale

1. DLD Transfer Fee (4%) — already paid at purchase

   When you purchased the property, you already paid the 4% DLD transfer fee — a non-refundable charge paid at the time of purchase.

2. Agent commission ~2% on sale

   The standard agent commission on a sale is 2% of the price. This is the only significant cost when exiting an asset.

3. NOC / early transfer fee (for off-plan)

   If you're selling off-plan before completion: the developer charges a NOC fee (AED 500–5,000) and may require that 30–40% of the property value be paid before the transfer of ownership.

4. Final Summary

   Tax = 0%. The real cost of exiting a position = ~2% commission + minor admin fees (AED 1,000–5,000 DLD). On the secondary market, that's all there is.

5. For legal entities

   The 9% Corporate Tax applies to a company's net profit from commercial activity. Selling property as an individual does not constitute commercial activity. Consult a tax advisor if you hold property through a corporate structure.

UAE vs Europe: a tax burden comparison

Frequently Asked Questions

Is there a capital gains tax on apartment sales in Dubai?

No. Capital Gains Tax for individuals in the UAE = 0%. You sell an apartment, pay 2% to your agent, and cover minimal DLD fees. There is no tax on the profit from the sale.

Does the 9% Corporate Tax apply to individuals?

No. The 9% Corporate Tax (introduced in 2023) applies only to legal entities with net profit exceeding AED 375,000 from commercial activity. An individual selling personal property is not subject to Corporate Tax.

What do you actually pay when selling property in Dubai?

2% agent commission + AED 4,000–5,000 in DLD admin fees (transfer registration, trustee office). If a mortgage is involved, there may be discharge fees (~AED 1,500). Total: approximately 2–2.5% of the sale price.

How much better is the UAE compared to Europe?

In the UK, CGT on property runs 18–28%; in Germany, 25% plus a solidarity surcharge; in France, 19–34%. In the UAE — 0%. This is one of the key advantages for high-net-worth investors. There's also no inheritance tax.

Is there an inheritance tax on property in the UAE?

No. There is no inheritance tax in the UAE. The main costs when inheriting are court and administrative fees (minimal if a DIFC will is in place). See our inheritance guide for details.