Tax on selling property in Dubai: zero in the UAE, but your home country may still tax the gain
The UAE has no capital gains tax on property, so a Dubai sale is tax-free locally. Tax residents of countries that tax worldwide income still owe at home: in Russia 13–15% unless held 3–5 years, in the UK 18% or 24% on residential gains.
There is no tax on selling property in the UAE: no capital gains tax and no annual property tax for individuals. But if you are tax resident in a country that taxes worldwide income, the gain is taxed there. A Russian resident pays 13–15% unless the home was held for 3–5 years; a UK resident pays 18% or 24%.
Is there capital gains tax on property in Dubai?
No. Individuals pay no UAE tax on the profit from selling a home. A sale only carries transaction costs: by market convention the buyer pays the 4% DLD fee, while the seller pays the agent's commission and the developer's fee for a no-objection certificate (NOC).
That also means there is no foreign tax to credit at home. Whatever your home country charges is due in full.
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Who owes tax at home on a Dubai sale?
It depends on where you are tax resident in the year of the sale, not on your passport. Countries that tax residents on worldwide income treat a Dubai gain like any other gain.
If you have genuinely moved to Dubai and lost tax residency elsewhere, a foreign property gain is usually outside your former country's net. Rules on leaving differ widely, so check the exit rules of the country you left.
How does Russia tax a Dubai sale?
A Russian tax resident, someone in Russia for 183 days or more in 12 consecutive months, owes personal income tax on the gain:
- 13% on a taxable base up to RUB 2.4 million a year;
- 15% on the part above RUB 2.4 million.
No tax is due after 5 years of ownership, or 3 years if the home is the owner's only residence, was inherited or gifted by a close relative, or was received under an annuity contract. The clock runs from the DLD title date.
Tax is charged on the gain over documented purchase costs, or on the price less a RUB 1 million deduction if there are no documents. The return is due by 30 April of the following year and the tax by 15 July.
Proceeds convert at the central bank rate on the day of receipt and costs on the day of payment. A weaker rouble can therefore create a taxable gain even on a sale at cost in dirhams.
How does the UK tax a Dubai sale?
UK residents pay capital gains tax on worldwide gains. Since April 2024 the rates on residential property are 18% within the basic-rate band and 24% above it, after the annual exempt amount. The gain is measured in sterling, so currency moves count here too.
What records should a seller keep?
Keep the sale and purchase agreement (SPA), proof of every instalment paid, the title deed and the sale contract. These documents prove your costs and your holding period, the two numbers every tax authority asks for.
Plan the timing too. A few months either side of a holding-period threshold or a change of tax residency can decide whether any tax is due at all.
Frequently asked questions
Do I pay tax in the UAE when I sell my Dubai apartment?
No. The UAE has no capital gains tax on property; only transaction fees apply.
Does my home country tax a gain on Dubai property?
If you are tax resident in a country that taxes worldwide income, yes, under that country's rules.
How long must a Russian resident hold a Dubai home to sell tax-free?
Five years as a rule, or three years for an only home, an inheritance, a gift from a close relative or an annuity.
To price your property and prepare it for sale, see Sell property in Dubai; if time matters, see our fast apartment sale service.
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