While addressing to a question, Mark Nierada, the legal consultant in Dubai who also practices law in England and Whales said that the UAE, Dubai does not press on any kind of personal tax; no income tax, no capital gain tax and certainly no death tax.
Real estate experts from LuxuryProperty.com further added that no matter who the buyer is, he or she, should be well aware of the value-added tax, cost, and fee of what he is purchasing. He then explained how this fee and cost is divided into three main categories; real cost of registering and attaining name, if your property is purchased through mortgage then you must ensure that you know about the rise in cost which will be also be affected if the tax rises and all the transferable cost. He explained this by giving an example that if a person sells his house for AED 37,00,000 with the payable tax of AED 18,000 which is payable to the Dubai Land Department. The person who will buy property will have to pay for the property transfer and also for the transfer of title, which might go up to AED 4500. If the property is brought on the mortgage then the buyer has to pay loan up to 0.25% of the loan for registration, sometimes mortgage agents charge 1% process fee and around 0.1% valuation fee. The buyer will also have to play 2% commission to the real estate agent. The fee goes up to AED 10,000.
The only tax which is demanded at the moment is the 4% which you have to pay while buying your choice of property. But in books, this tax is divided into 2: 2, buyer and sellers both have to pay this tax but in practice, it is only the buyer pays. This was briefed by Andrew Thomson, who is a partner and current head of real state and hospitality in the Middle East and Africa sector at Gowling WLG in Dubai. Mr. Thompson also said that an added 5% is also added which is yet to be finalized but housing property is still exempted from this. There is no tax on the housing which is boosting property in Dubai however the rented properties are also high in demand. Even though the rents are high and are beneficial for the government but it still benefits the buyers for short-term.
Even though Dubai doesn’t have any property tax, Dubai does have a private community fee similar to homeowner association fee. This fee is determined by measuring per square foot and the financial demand is levied and vary from property to property.
But according to Mr. Nierada, the major issue is the fluctuation of prices which is reflected in the rise of petroleum and oil prices.
Incoming search terms:
- https://csgopill com/2019/01/05/dubai-land-of-real-estate-investment-opportunities-without-property-taxes/