Why Dubai Rental Income Is Tax-Free - And What You Actually Keep
Zero income tax, zero capital gains tax, zero inheritance tax. Here is what that means for your actual net returns.
One of Dubai most compelling investment advantages is its tax structure. For property investors: income tax on rental income is 0%. Capital gains tax on property sales is 0%. Inheritance tax in the UAE is 0%. This means your gross yield and net yield are essentially the same figure, minus service charges. Compare this to a UK investor paying 40% income tax on rental profits, or a US investor paying federal and state tax on rental income. Important note: tax obligations in your home country may still apply to overseas rental income - consult a qualified tax adviser in your jurisdiction. What this means in practice: a 7% gross yield in Dubai typically delivers 6-6.5% net after service charges - compared to a 7% gross yield in London delivering 3.5-4% net after income tax. Use our ROI calculator to see your specific numbers.
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