Why invest in Dubai property?

Before looking at Dubai, a UK-resident investor needs to understand the rules that shape every purchase: where foreign nationals can own, how a purchase is registered and what it costs, how off-plan money is protected, holiday let rules, the residency route and how the UK taxes the result.

International developments are being added to PROXERA. None is listed yet, so this page describes the market and its rules, not a property you can buy through us.

For the steps that apply in any country, read buying property abroad.

Under Article 4 of Law No. 7 of 2006, ownership of real property in Dubai is restricted to UAE and GCC nationals, companies fully owned by them and public joint stock companies. Non-UAE nationals may, with the Ruler's approval and in areas the Ruler determines, hold freehold with no time limit, or usufruct or leasehold rights of up to 99 years.

Regulation No. 3 of 2006 designates those areas plot by plot. It lists 23 areas, including Dubai Marina, Emirates Hills and Palm Jumeirah, and later instruments such as Resolution No. 25 of 2021 have added land. Your lawyer should confirm the exact plot, not just the community name.

Article 9 of the 2006 law says a property transaction is not valid unless recorded in the Property Register held by the Dubai Land Department (DLD), which issues title deeds at its offices and Trustee centres.

A worked example: on an AED 2,000,000 resale, the 4% fee is AED 80,000, of which the buyer pays AED 40,000 if split as DLD shows, or all of it if the contract says so. The Trustee fee is AED 4,000 plus 5% VAT, AED 4,200. Broker, legal and developer consent fees are set privately: get them in writing.

Decree No. 41 of 2013 bars anyone from leasing holiday homes without a tourism department licence, with fines of AED 200 to AED 20,000, more for repeats. Permits are now issued by the Department of Economy and Tourism (DET). Under the 2020 bylaw, each unit needs a permit valid for one year, the area must be authorised for the activity, the sale contract must not prohibit holiday home use, and guest details go to DET. The UK furnished holiday lettings regime ended in April 2025, so this income is taxed in the UK like any other overseas rent.

Rent. UK residents normally pay UK tax on foreign income, including overseas rent; in 2026 to 2027 it is taxed at your normal Income Tax rates. It is an overseas property business, kept separate from any UK letting, so losses cannot cross between them (PIM4702). From 2027 to 2028, property income, including overseas property profits, is taxed at 22%, 42% or 47% (Finance Act 2026). Report it on SA106.

No foreign tax, no credit. Foreign tax credit relief offsets foreign tax actually paid. With no UAE income tax on individuals, there is usually nothing to credit and the full UK tax is due.

Gains. For 2026 to 2027, Capital Gains Tax is 18% or 24% after a £3,000 allowance, reported on your Self Assessment return, or through the real time Capital Gains Tax service by 31 December in the tax year after the gain.

Newcomers. Since 6 April 2025 the 4-year foreign income and gains regime has replaced the remittance basis for people new to the UK after 10 years abroad.

Treaty. The UK and UAE convention entered into force on 25 December 2016. Under Articles 6 and 13 of the convention, income and gains from UAE property may be taxed in the UAE, and under Article 21 UAE tax on the same profits is credited against UK tax. More in UK tax on overseas property; buying in the UK from the UAE, see our UAE guide.