Buying a villa in the UAE: what taxes does one need to pay?

Buying a comfortable villa in the United Arab Emirates is not as difficult as it might seem at first glance. In general, the purchase of real estate in this country is characterized by loyal conditions and a simplified purchase procedure. That is why many investors from Russia and other countries choose the UAE for the purchase of housing and commercial properties.

Important conditions of purchase

To buy a villa in the UAE one first has to find a real estate agency licensed to conduct such activities. If the housing belongs to the primary market the buyer will have to pay for the services of the company, but if it's in the secondary market then the amount of costs will be divided in half between both parties.

The first tax that must be paid is the registration fee. Its size is not the same across the country:

• in Dubai it is 4%;
• in most other regions - 2%.

It is paid to the Land Code department immediately after the acquisition of the object.

Another mandatory fee is administrative. Only the buyer pays it. The amount is $150. This type of tax will not have to be paid if housing is inherited, or when a person receives it as a gift.

Additionally, there is a one-time payment to the budget from the buyer's side. It is about $550 for an object, the price of which does not exceed 136 thousand dollars (500 thousand dirhams), and about 1 thousand dollars if the cost of housing is higher.

Upon receipt of the title deed, the buyer pays the duty. Its size is fixed - $70. It will be possible to receive the paper 3 days after the transaction is completed.

The buyer should not forget that after purchasing the villa he will need to pay a state fee for the services necessary for the maintenance of the object, such as utility bills that cannot be calculated by meters, for example, garbage collection, etc.