Renting out property in the UAE: landlord guide

Costs of buying

• Dubai charges a 4% Dubai Land Department transfer fee on the price, usually paid by the buyer, plus admin fees. A mortgage adds 0.25% of the loan for registration. Abu Dhabi charges 2%.
• Agent commission is commonly 2%. In Dubai, budget roughly 7–8% on top of the price in total.
• There is no annual property tax, but owners pay service charges to the building's owners' association.

Buying as a foreigner

• Foreigners can buy freehold in designated areas, for example Downtown Dubai, Dubai Marina and Palm Jumeirah, and Abu Dhabi investment zones such as Saadiyat, Yas and Al Reem.
• Property worth AED 2 million or more can qualify for a 10-year Golden Visa, subject to the current rules.
• Expat mortgages need a down payment of at least 20%, more for higher-value or additional homes.

Official guidance: Dubai Land Department · UAE government portal: Golden visa

How rental income is taxed

• The UAE has no personal income tax. Under UAE corporate tax, rent an individual earns from investing in property is not taxed unless the activity needs a commercial licence.
• Companies that own property pay corporate tax at 9% on profits above AED 375,000.
• Residential rent carries no VAT; commercial rent carries 5% VAT.
• If you are tax-resident elsewhere (for example India, the UK or the US, or a US citizen anywhere), that country may tax the rent.

Expenses to track

• No UAE tax return is needed for rent you earn as an individual, so nothing is claimed in the UAE.
• If your home country taxes the rent, service charges, maintenance, agent fees and loan interest may be claimable against rental income there. Keep receipts in dirhams and your home currency.
• Tracking these costs also shows your real net yield, which in Dubai is often 1–2 points below the gross figure.

Tenancy rules and customs

• In Dubai every tenancy must be registered on Ejari (Tawtheeq in Abu Dhabi).
• Security deposits are commonly 5% of the annual rent for unfurnished homes and 10% for furnished ones.
• Rent increases in Dubai are limited by the RERA rental index. Changes to the terms at renewal need 90 days' written notice before the contract ends.
• Ending a tenancy to sell or move in yourself needs 12 months' notice by notary public or registered mail.
• Rent is often paid with one to four post-dated cheques a year.

Key dates

• Before the tenant moves in: Register the tenancy on Ejari (Dubai) or Tawtheeq (Abu Dhabi)
• 90 days before the contract ends: Written notice of any rent increase or change of terms
• 12 months before you need the home back: Notice to end a tenancy to sell or move in, by notary or registered mail
• As invoiced (often quarterly): Service charges to the owners' association

Questions landlords ask

What is a good rental yield in Dubai?

Gross yields on Dubai apartments are commonly 5–8%, higher than in most global cities. After service charges, maintenance and empty months the net yield is usually 1–2 points lower. Use the rental yield calculator for the UAE to check a specific unit.

Do I pay tax on rental income in the UAE?

Not as an individual: the UAE has no personal income tax, and rent from personal property investment is outside corporate tax unless it needs a commercial licence. Your home country may still tax it if you are tax-resident there.

Can foreigners buy property in Dubai?

Yes, as freehold in designated areas such as Downtown, Dubai Marina and Palm Jumeirah. Buyers pay a 4% Dubai Land Department transfer fee, and homes worth AED 2 million or more can qualify for a Golden Visa.

How much can a landlord raise the rent in Dubai?

Increases are limited by the RERA rental index for the area and need 90 days' written notice before the contract ends.

What security deposit is normal in Dubai?

Commonly 5% of the annual rent for unfurnished homes and 10% for furnished ones.

Official sources

• Dubai Land Department
• UAE Federal Tax Authority
• UAE Ministry of Finance: Corporate tax