Upfront transaction costs
DLD transfer fee (4%), Oqood/registration (~AED 4,000), agency (2%) and a 5% VAT on commercial only.
Ongoing taxes
Dubai has no annual property tax, no capital-gains tax and no personal income tax on rental income.
Holding costs
- Community / HOA fees
- Utilities and maintenance reserves
- Property management (8–20% of rental income)
- Insurance
Build your true-cost model
The right way to evaluate a deal is net yield after all costs, not gross yield. Compare any two properties on a like-for-like basis.
Key takeaways
- Always quote yield on a NET basis.
- Budget 8–12% on top of the price for transaction costs.
- Annual property and rental-income taxes vary widely — model them.
- Property management eats 8–20% of gross rent.
- Insurance and maintenance reserves are not optional.
Ready to test what you learned?