Real estate sector in the UAE, namely in the Emirate Abu Dhabi, is not so heavily taxed, unlike hospitality or entertainment segment. That is why investing in Abu Dhabi properties is so attractive and as simple as that. There is no taxation, common for many other countries, that arises from capital gain upon the sale of real estate, nor income tax caused be rental income derived and no tax liability, which appears upon dividends being paid to a shareholder in a real estate company.
Still, acquiring residential or commercial properties and lands onsite Abu Dhabi the customers have to pay related taxes as follows:
- Municipality fee 2%;
- Mortgage registration 0,1% of property value;
- Bank mortgage arrangement about 1% +5% VAT;
- Property assessment by the bank AED 2500–3000;
- Title deed issue AED 1000;
- Broker's commission 2%.