TOP 10 tax benefits for real estate investors in Dubai in 2025

Dubai has become one of the most attractive destinations to invest in real estate, with a favorable tax environment a key factor in its success.

1. No income tax on rental properties

One of the biggest attractions for foreign investors is zero income tax. This means that if you rent property in Dubai, you do not have to pay any taxes on rental income. This benefit applies equally to both long-term rentals and short-term rentals through platforms like Airbnb. Bayut

Veronika Plichtová, real estate expert and CEO of Move Homes, says:

“Dubai offers unbeatable conditions for real estate investors, especially thanks to a favorable tax policy. With the right choice of location, the return on investment can be very high.”

2. No capital tax on the sale of real estate

In many countries, investors must pay capital tax when selling real estate. Dubai is an exception. This means that if you sell a property at a profit, you do not have to deduct tax on this profit Khaleej Times. This advantage allows investors to maximize their returns without additional tax burdens.

3. Tax neutrality and the absence of hidden fees

In addition to the absence of income taxes and capital gains, Dubai also has no inheritance tax or property tax. Thus, investors do not have to worry about additional costs that could affect their returns. However, it is important to consider the fees associated with the transfer of ownership of the property, which are around 4%. Dubai Land Department

4. Possibility of VAT optimization in development projects

Although Dubai applies 5% VAT on some types of transactions, when buying property under construction (off-plan) investors can take advantage of certain exemptions and optimizations. A number of development projects offer investors options to minimize the tax burden. Gulf Business

Move Homes advises:

“When investing in real estate in Dubai, it is important to consult all tax aspects with experts. For example, when buying off-plan projects, it is possible to minimize some fees and VAT, depending on the structure of the transaction.”

5. Benefits for foreign investors and corporate structures

Dubai offers a variety of corporate structures that can help investors optimize taxes while ensuring the protection of their assets. Among the most popular is the establishment of free-zone companies, which allow foreign investors to own real estate while benefiting from zero tax burden. Dubai Free Zones

6. Prohibition of double taxation for international investors

Dubai has signed agreements on the avoidance of double taxation with many countries of the world. This means that investors do not have to pay tax twice — once in Dubai and once in their home country. This makes Dubai even more attractive for foreign investors. Wezareta Darayî ya UAE

7. Tax benefits for entrepreneurs and startups

In addition to advantages for real estate investors, Dubai has favorable tax conditions for entrepreneurs. Setting up a company in Dubai can be advantageous for those who want to combine real estate investment with business. In free-zone zones, entrepreneurs can benefit from 100% company ownership, zero duty and no taxes on profits. Dubai Chamber of Commerce

8. Asset protection and flexibility of legal structures

Dubai provides investors with various legal structures that allow their assets to be protected from foreclosures or legal disputes. Offshore companies in Dubai can own real estate, providing an additional layer of protection for investment capital. Dubai Financial Services Authority

9. Investment stability and government support

The government of Dubai actively supports the real estate sector and investors through various programs and reforms. A long-term vision of sustainable real estate growth and development provides investors with certainty and stability in their investments. Hikûmeta Dubai

10. The possibility of obtaining a resident visa when investing in real estate

Investors who invest in real estate in Dubai can get two-year or ten-year residency visas, thereby obtaining additional benefits including easier business, financial benefits and long-term residence in the UAE Hikûmeta UAE

Why is Dubai a tax haven for investors?

With a favorable tax policy, zero taxes on income and capital gains, and tax optimization options, Dubai is an ideal destination for real estate investments. For investors who want to maximize their profits while benefiting from a growing market, Dubai is a clear choice.

If you are thinking of investing in real estate in Dubai, contact Move Homes — experts in the Dubai real estate market who will help you find the best investment opportunities and ensure effective management of your portfolio.