Project year-by-year and cumulative net rental income over 5 years for a UAE investment property.
5-year net rental income
—
Year 1 net income
—
Year 5 net income
—
5-year gross income
—
5-year total deductions
—
Your breakdown
Updates live as you type
Item
Amount
Why rental income planning matters in the UAE
The UAE buy-to-let market attracts investors from across the world partly because rental income is entirely untaxed at the individual level. A landlord receiving AED 96,000 per year in gross rent keeps the full amount, minus operating costs such as management fees and service charges. In a comparable market such as the UK or Australia, up to 40 to 45 percent of that income would be paid in tax, dramatically reducing the cash return. Building a realistic 5-year projection helps landlords understand actual cash flows rather than relying on headline gross yield figures, which ignore the operating costs that erode returns in practice.
What drives the year-on-year income change
The projection compounds the monthly rent at your specified growth rate each year, reflecting the tendency for rents to rise with market conditions and RERA index updates. From each year’s gross rent the calculator deducts the management fee as a percentage of gross income, the annual service charge (which grows as this is a real cost paid to the OA), and a vacancy allowance representing the weeks per year when the property is unoccupied. The result is the net income available to the landlord each year. Cumulating the 5 annual net income figures gives the total net income over the holding period.
Limitations of this projection
This tool projects income based on constant growth assumptions. In practice, UAE rents can be volatile: they rose sharply in 2022 to 2024 in many Dubai areas but have historically also fallen during economic downturns. The projection does not include maintenance and repair costs, mortgage financing costs, or the one-time costs of setting up a tenancy (security deposit collection, Ejari registration fees, or fit-out between tenants). For a complete investment analysis, layer these additional costs into the model and compare the result to alternative uses of the capital such as a fixed deposit or index fund.
Frequently asked questions
Is rental income taxed in the UAE?
Individuals in the UAE pay no personal income tax on rental income. Gross rental receipts minus allowable expenses are entirely yours to keep. Corporate landlords, meaning companies structured as taxable persons, may be subject to the 9 percent corporate tax if total taxable income exceeds AED 375,000, but individual property owners are outside the corporate tax net. This makes the UAE exceptionally attractive for buy-to-let investors compared to markets where rental income is taxed at marginal rates of 20 to 50 percent.
How much do property management fees cost in the UAE?
Professional property management companies in the UAE typically charge 5 to 10 percent of annual gross rental income. For a furnished short-term rental managed through a holiday home operator the fee is often higher, at 15 to 25 percent of revenue. For longer-term unfurnished lets, 7 to 8 percent is a common market rate for a full management service covering tenant sourcing, maintenance coordination, rent collection, and RERA compliance.
What is a typical vacancy rate for UAE residential properties?
In a well-maintained unit in a popular area, a realistic vacancy allowance for planning purposes is 5 to 10 percent of the year, representing 3 to 5 weeks between tenancies or during fit-out periods. Units in oversupplied submarkets or lower-demand buildings may run at 15 to 20 percent vacancy. Setting a realistic vacancy rate is important: ignoring it overstates net income and can lead to cash flow problems during extended vacant periods.
What are service charges in UAE residential property?
Service charges are annual fees levied by building or community owners associations (OA) to cover maintenance of shared facilities, common area cleaning, security, landscaping, and building insurance. Rates vary significantly from under AED 5 per square foot for older communities to over AED 25 per square foot for premium developments. Typical apartments in Dubai range from AED 10,000 to AED 50,000 per year in service charges. These are a non-negotiable cost that reduces net rental income.