Module 3: Taxes, Fees & Holding Costs

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.

• 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.