Dubai is a city that offers an excellent quality of life..
It has strict laws to ensure high levels of safety, order and cleanliness. The city is also famous for its peaceful
welcoming of all religions and ethnicities, creating a multicultural and tolerant environment.
These factors contribute to make Dubai as a popular destination for successful real estate investments.
Furthermore, Dubai’s real estate market enjoys favorable tax conditions for investors.
There is no propertytax, no taxes on rental income, capital gains or inheritance.
This attractive tax policy helps create a highly competitive environment for investors.
Furthermore, Dubai’s economic stability and the local currency strength, the Dirham, offer additional
benefits in terms of stability and investment returns.
Zero Crime rate
Zero Drugs
Absolute equality of rights of men and women
Zero Risks for women and children
High-quality education
High-quality private healthcare
Lean bureaucracy
Zero Corruption
0% Personal Income tax rates
0% Real Estate taxes
Why is it so profitable to invest in Dubai Real Estate?
- 0% Tax rate for taxable income on capital gains
- 0% Property tax
- 0% Tax on rental income
- 0% Tax on property resale
- 0% Notary fees
- 0% Inheritance Tax
- High rental yield (both long and short-term rental)
- Low property management and maintenance costs
- Opportunity to obtain residence visa
- Mortgages up to 50% even for non-UAE residents and up to 80% for residents
- 0.125% Tax on property gift/transfer to spouses or family members
- 5% VAT on the rent of commercial buildings (no for residential purpose)
- 5% - For residential use, tenants (not the property owner) are required to pay a municipality fee equal to 5 % of the property’s annual rent and is paid in monthly instalments.
- 4% is the one-off rate equal to the value of the property purchase price to be paid to the Dubai Land Department (DLD).
- Great off-plan investment opportunities (pre-construction and during construction)
- Easy interest-free payment plans for up to 7/8 years offered by developer
What are
off-plane properties?
The real estate sector in Dubai and in the UAE has seen a massive growth over the past decades, thanks also
to the extreme flexibility offered to investors.
Consider that here are many solutions ranging from studio apartments to luxurious villas catering to every possible need. In particular, the heart of every purchase transaction lies in the payment facilities which usually provide for a deposit ranging from 10 to 20%, followed by monthly installments of 1% or 10% every six months (depending on the developer), with deferred payments over time up to 7/8 years.
This enables investors to take advantage of buying off-plan properties, i.e. purchases that still exist only “on paper”, making very high percentage profits in a short period of time (18-24 months on average).
In fact, It is possible to resell the property even without having the actual availability.
Example of buying an off-plane apartment
Apartment value
€ 220.000
Purchase with a 15% deposit
€ 33.000
Installments paid over 2 years
€ 17.000
Property value increased over 2 years
€ 270.000
In this case, there is a profit or capital gain of €50,000, not on the amount of €220,000,
but on approximately €50,000 paid through deferred and down payment, thus resulting in a 100% capital gain within just two years.
This is an example that makes it easy to understand the large number of potentially achievable operations in a relatively simple way.
City of the Future
Good reasons to invest in Dubai
Politically Stable
The Sheikh Mohammed bin Rashid Al Maktoum is a ruler well-liked and loved by his people, as an enlightened ruler he has always made investments to grow the city and give it a real identity. His throne is therefore well seen bybothlocal people and by governments around the world.
Safety
Dubai is one of the safest places in the world to live with an almost nonexistent crime rate. The city is family-friendly and offers a modern and luxurious lifestyle. Furthermore, government agencies and bodies protect foreign investments and monitor real estate transactions.
Currency Stability
Since November 1997, the United Arab Emirates DIRHAM (AED) has been pegged to the US dollar (USD) at a rate of $1 to AED 3.6725. The value of the currency has enjoyed balance and growth, as well as import and export stability.
Zero Taxes
Residents are exempt from personal income tax and residential properties are not subject to value-added btax (VAT). However, a VAT rate of 5% and 9% have recently been introduced for business profitsabove AED 375,000 (e.g. €93,750).
Zero Taxes on properties
There is only one documentation cost incurred while buying property in Dubai, which is 4% for the title deed (DLD) and the house is 100% registered in the name of investor without any obligation of local partners. No further payment is required, such as property tax or other.
DUBAI 2040 Urban Master Plan
is the project of His Highness Sheikh Mohammed bin Rashid Al Maktoum, whoaims to make Dubai the world’s best city for livingby the year 2040.
