TAXES AND LAWS FOR BUYING PROPERTY IN DUBAI
The best-claimed part of buying property in Dubai is their convenient laws and legislation for taxation. It is responsible for captivating a huge amount of customers towards investment in its real estate market. The futuristic and innovative projects constantly being built in Dubai is making it an attractive destination for investors. In such an appealing approach, it becomes quite important for buyers to know about the taxes and laws to buy.
Dubai, one of the seven emirates of the UAE is known for its futuristic planning and vision for the country and its people. The level and ease of transacting here are amongst one of the easiest. You only pay a small amount while purchasing a property and can expect a good return from it. The city offers a reduced tax liability on the owners which makes it a tax haven for buyers.
So, here are some of the taxes you shall be liable for while buying a property in Dubai.
ZāZEN One hosts an array of attractions within as well as around the development. Even more, it is located with access to Dubai’s famous landmarks.
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Property Tax
No property tax is levied on buyers in Dubai for buying any property. Yes, you read it correctly. It’s true that buyers are not eligible to pay any direct tax on the property. However, there is one direct tax which is a 4% charge levied at the time of sale.
It has been one of the primary factors attracting investors worldwide towards the real estate sector of Dubai. It is one of the many benefits provided to foreign property buyers by the government.
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Registration fees
Whenever buying a property, it is always better for a buyer to register the property and record it officially under his/her name. This is where registration and registration fees come into the picture. It is done through legal documents and processes and is a fee charged by the Dubai Land Development. The fee is much lower as compared to other foreign cities. Presently it is charged around AED 2,000 for a property that costs up to AED 500,000.
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Broker/Agency Fees
A broker or a property agency makes it fairly convenient for the potential buyer and property holder to connect. It deserves its share and also gets it at around 2% of the purchase value. This fee is usually payable by the buyer. It is a commission charged by the estate agency for its services to buy desirable property in Dubai.
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Off-plan property charges
A property to which the buyer commits to purchase before its finished being built is termed as an off-plan property. In order to buy the same one needs to pay a contract fee called Oqood fee that is 4% of the property price.
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Dubai Land Development Fee
DLD fee is borne by the developer instead of the buyer of the property in some cases. While sometimes 50-100% is offered by the developers on DLD fees which means that the buyer has to pay it if necessary. There is also a Dubai Land Development Transfer fee borne both by the seller and buyer on transfer from one party to another. It sits at the rate of 4% paid to DLD during the process.
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Valuation cost
While buying a property in Dubai you also have to take valuation cost into consideration. The buyer needs to pay the valuation fee for Dubai authorities. Which helps in generating the real-time value of the property. It stretches from AED 2500 tO AED 3500.
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Service tax
It is a regular recurring fee for maintenance of all the properties payable by the owner. The calculation for villas is based upon the pot size whereas apartments are based upon their square feet size but both based on the title deed.
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Municipality Tax
Municipality taxes are levied after the purchase of the property. The owners of the property are liable to a monthly rental tax of 5% to the local municipality. However, in the case of rental, the tenant has to pay the tax.
Apart from this the Internet, phone and television charges are also paid by the tenant in case of rental otherwise by the owner.
Dubai, one of the seven emirates of the UAE is known for its futuristic planning and vision for the country and its people. The level and ease of transacting here are amongst one of the easiest. You only pay a small amount while purchasing a property and can expect a good return from it. The city offers a reduced tax liability on the owners which makes it a tax haven for buyers.
ZāZEN is a real estate firm that provides an excellent experience for its residents. They offer modern urban design, evolving real estate insights and refined aesthetic sensibilities.
