Suppose you bought a Dubai apartment for AED 1,500,000 and later sold it for AED 1,950,000. The gross gain is the sale price less the purchase price, which is AED 450,000. Now subtract your costs. Buying costs were AED 105,000, covering the 4% transfer fee and agency and registration charges, and selling costs were AED 40,000 in agency commission. Total costs are AED 145,000, so your net profit is AED 305,000. An individual selling a personally held property in the UAE pays no capital gains tax, so the tax due is AED 0 and you keep the full AED 305,000.
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Amount
How it is calculated
The gross gain is the sale price minus the original purchase price. From that you subtract the costs of buying and selling, such as the Dubai Land Department transfer fee, agency commission, and registration charges, to reach the net profit. In most countries a capital gains tax would then apply, but the UAE levies no capital gains tax on individuals selling property held in a personal capacity. The tax line is therefore zero and the net profit is what you keep. The one exception is a company that deals in property as a business, whose profit may fall within the 9% corporate tax regime rather than this personal treatment.
Frequently asked questions
Do I pay capital gains tax when I sell property in the UAE?
No. Individuals selling property held in a personal capacity pay no capital gains tax in the UAE, so your net profit is simply the sale price less the purchase price and your buying and selling costs. Companies dealing in property may instead fall within the 9% corporate tax regime on the profit.
What buying and selling costs should I include in this calculator?
Typical buying costs for a Dubai property include the 4% Dubai Land Department transfer fee, a fixed DLD admin fee of around AED 580, title deed registration of AED 250, and agency commission of about 2% of the purchase price. Selling costs usually include the agent commission, around 2%, and any outstanding service charges owed at transfer. Enter all of these as cash outlays in the relevant fields to get an accurate net profit figure.
What is the difference between the gross gain and the net profit in this calculator?
The gross gain is the raw difference between the sale price and the original purchase price, with no costs deducted. The net profit is the figure you actually keep: the gross gain minus the buying and selling costs you incurred. Because there is no capital gains tax for individual sellers in the UAE, no tax line reduces the net profit further, and the net profit shown is your effective take-home from the transaction.
Does the no-CGT rule apply to all property types in the UAE?
It applies to individuals selling property held in a personal capacity, covering residential and commercial properties alike. The exception is where a corporate entity is involved. A company that buys and sells property as part of a business activity may be treated as earning trading profit subject to the 9% UAE corporate tax rather than a personal capital gain. If you hold UAE property through a company structure, confirm the tax treatment with a qualified tax adviser before selling.