Is There a VAT on Residential Rent in Dubai?

Short answer

No, residential rent in Dubai is exempt from Value Added Tax (VAT).

The 5% VAT rate applies to commercial properties, but residential leases do not incur VAT charges.

Figures to know

DLD fee for registering a sale, ready or off-plan, of the contract price

2% + 2%

the 4% DLD transfer fee is split equally between seller and buyer unless the contract says otherwise

0.25%

DLD fee for registering a mortgage, of the loan amount

Rate × area

annual service charge: the rate per sq ft approved for the building, times the unit's area; the rate of every project is public in the Mollak index

Enter your figures. Buyer’s side, without agency commission.

Property price, AEDMortgage loan, AED (0 if none)

DLD transfer fee, 4%AED 80,000

Title deedAED 580

Trustee office, with VATAED 4,200

Mortgage registrationAED 0

Total on top of the priceAED 84,780

Indicative calculation, not an offer. Published figures differ slightly; we give the exact statement after the NOC and the bank letters.

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