Tax Free Dubai
Did you know that real estate ownership in the United Arab Emirates is particularly attractive from a tax perspective? So, are you looking for a smart way to invest in real estate without being held back by high taxes? Then the United Arab Emirates is a particularly interesting option.
What does this mean in practice? In the United Arab Emirates, you don't pay tax on:
- The ownership of real estate
- The rental income from real estate
- The appreciation of real estate
- The transfer or inheritance of real estate
This tax-free structure makes investing in Dubai real estate not only profitable but also transparent and simple. Whether you're looking for passive rental income or aiming for long-term capital growth, the tax climate here is fully in your favor.
Short note: It is important that you check for yourself what tax consequences your Dubai real estate investment has in the country where you are liable for taxes.
Tax Free for Dutch Residents
The Netherlands has the following rule: Real estate is taxed in the country in which it is located. Will you remain a resident in the Netherlands and buy real estate in Dubai? Then the rule to prevent double taxation applies; you declare your real estate in Dubai in your Dutch tax return. Tax is calculated in box 3 and then deducted again, because the property is located abroad. In addition, because tax is levied on the value of the property, no further tax is levied on the rent.
You pay NO tax on your property, rental income, or property appreciation in Dubai.
If you have any further questions about the potential new Exit tax in the Netherlands, read more about it in our blog: New Exit Tax in the Netherlands.
Any questions?
As Dubai experts with extensive experience in the local real estate market, we are in an excellent position to help you purchase property in Dubai. Please do not hesitate to contact us if you have any questions.
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