Property ownership costs | Inheritance Issues

Dubai is a tax-free international hub, which means there are minimal fees associated with owning property there.

Ongoing fees and taxes

There is a 5% residential tax assessed on rental value.

There are a number of different types of visa available to visitors and residents of the emirate. As these visas are subject to change, it is best to consult the Dubai government website to check the latest terms and conditions as well as up-to-date charges.

Utility bills

Property utilities (water, electricity, and gas) are billed each month according to usage. Electricity in the UAE is 220/240 volts which means that US appliances will require an adaptor.

In order to get each utility connected to your apartment or villa, you will need to go down to the city's utility provider with your tenancy contract and a refundable deposit of AED1,000-AED2,000 (£135-£270). Abu Dhabi and Dubai are the only emirates with completely clean water supplies suitable for drinking. Individuals living in other cities usually rely on bottled water.

Lettings and management charges

Should you intend to spend most of your time outside Dubai, you need not worry about the maintenance or security of your home, as are plenty of property management companies to look after it in your absence. There is also a substantial residential rental market.

Service and maintenance charges usually total around 1% of the property value per year.

Rental laws

Tenancy contracts in the UAE normally last for a year, with the exception of Sharjah, where the term is normally three years. Within that time landlords are not permitted to increase the rent until it requires renewal. At the time of renewal, a landlord is not permitted to increase the rent by more than 5% in Dubai.

Laws are generally pro-tenant. In the event of a dispute the issue should be taken to the Municipality's Rent Control Committee to settle. To file a case with the Rent Control Committee will cost AED400-AED500 (£55-£70) and will take normally between a few weeks or months before being summoned to appear before the committee. If the case is won, then the fee paid to file a case will be paid for by the landlord.

Landlord obligations

Landlords are normally obligated to handle the annual maintenance of their property and they are not permitted to evict a tenant without just cause within the tenancy contract time period. What constitutes “just cause” is still an uncertain issue as the laws covering this issue are still quite new.

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