Dubai Tax Rate: Income Tax, Rental Income & Capital Gains Explained

Interested in investing or working in Dubai? One of the biggest reasons people move or invest here is the zero-tax advantage. Here's a simple guide to how Dubai taxes income, rent, and capital gains, and how it compares to other countries like India, the US, or the UK.

1. Dubai's Zero-Tax Structure

Dubai has no personal income taxes. That means:

• No income tax on your salary

• No tax on rental income

• No capital gains tax when you sell property

• No inheritance tax

You keep 100% of what you earn, whether it's from work or real estate.

2. Low Property Transaction Costs

Total cost (agent fees, registration, transfer): usually around 6%

This makes Dubai attractive for real estate investors looking for higher net returns.

3. What About Taxes in Your Home Country?

While Dubai doesn't tax you, your home country might:

India: If you send over ₹10 lakh (~$12,000) abroad in one financial year, your Indian bank deducts 20% TCS (Tax Collected at Source).

• This can be refunded when you file your income tax return

• Indian rental income or gains still remain taxable

US/UK/Other countries: You may still have to report and pay tax on global income or capital gains depending on your residency and tax laws.

Check with a tax advisor to stay compliant in both countries.

4. Why Dubai's Tax System Matters

Earn more from salary or property with no income tax

• Keep full profits on property sales — no capital gains tax

• Combine that with stable laws, global connectivity, and Golden Visa options, and Dubai becomes a top pick for individuals and investors

5. Pro Tip: Lower Your Upfront Tax Impact

• Spread international transfers across family members

• Use UAE mortgages to reduce how much you need to send from abroad

Investing in Dubai? Get expert guidance on cross-border tax compliance, with a free 15 minute consultation from Settleline.