Domicile against residence: two words that decide different taxes
They are used interchangeably in conversation and mean entirely different things in law. One follows where you live; the other can follow you for decades after you leave.
Legal advice in Dubai
Property in the UAE is protected by strong ownership rights, but a foreign owner has three questions that almost always get postponed: tax in the country of residence, getting out of a deal when circumstances change, and inheritance.
All three are easier to solve before the deal than after it. Tax consequences depend on your status and holding period, the ability to exit a contract is set by its wording, and without a registered will assets in the Emirates may not pass the way the owner intended.
We advise on these questions together with lawyers who practise in the UAE and in your country of residence. It does not replace an individual tax or litigation opinion, but it shows where the risk is and which document closes it.
Talk to a licensed broker: 📲 +971 50 120 32 64 on WhatsApp, @dubai_oleg on Telegram
Tax when you sell property in Dubai: the UAE side is simple, your home country is not
"There is no capital gains tax in Dubai" is true and it is not the whole answer. What the UAE actually charges on a sale, why your tax residency decides the rest, and the checks that belong before the transaction rather than after it.
Read the full article →What we cover
Double taxation: sold in Dubai, taxed at home
Dubai has no capital gains tax and no personal income tax. But a tax resident elsewhere — in Russia, for example, 183 days a year or more — generally declares worldwide income, including the sale of property abroad. A double tax treaty credits tax paid in the other country; if the UAE tax is zero, there is nothing to credit.
The outcome depends on your tax status on the date of sale, the holding period, the structure (personal or company) and the days spent in each country. All of this needs understanding before the deal. Keep the purchase contract, proof of every payment, improvement costs and bank statements — they determine the taxable base.
Force majeure and exiting a deal
Under UAE law force majeure means circumstances that make performing the contract objectively impossible. A change of plans, financial difficulty or a market fall usually do not qualify, and walking away without legal grounds costs part of what you have paid: on off-plan the retention depends on the construction stage.
Real grounds are the terms of the SPA and breaches by the developer: missed completion, a material change to the project. Without legal grounds, the options are talks with the developer — rescheduling, a unit swap — or assigning the contract. The best protection is reading the SPA with a lawyer before signing.
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Frequently asked questions
Do I need a lawyer to buy property in Dubai?
Not always for a standard deal with a proven developer. But the SPA, cancellation and assignment terms are worth reading before signing: changes at the start cost far less than disputes later.
Is there inheritance tax in the UAE?
There is no inheritance tax in the usual sense — transferring assets involves mainly administrative and registration costs.
See also
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