What is the tax situation in Dubai?
In recent years, Dubai has retained the position of a promising region for investment for enterprising businessmen. Of course, the tourism industry, favorable conditions for living and recreation, as well as a source of innovation in a number of areas – all this has a private investors to make a purchase of real estate. However, taxation remains an equally important nuance. We will talk about this now.
First of all, it should be noted that dozens of taxes that are relevant in other countries do not apply in Dubai. This contributes to significant easing in the business segment, which decides to settle here. Real estate registration requires the owner to only pay one and a half interest tax. At the same time, the seller must allocate 0.5 percent of the total value of the object offered for sale.
After completing these procedures, the need for any other taxes completely disappears. If you compare with European legislation, you can get the following figures: in Germany, the purchase tax ranges from 3.5 to 6.5 percent, in Spain – 2 percent. If you add a tax on income, property and resale, you get a rather large amount. This is what attracts Dubai to potential investors who wish to refrain from additional financial expenses.
As practice shows, the only costs that will be relevant for the owner, are associated exclusively with utilities. Approximately 25-26 dollars per square meter per year – the average for the city.
Special attention should be paid to the situation with the companies registered in the FEZ. It provides complete freedom from paying import duties, at the same time, the repatriation of money capital, which they invest in real estate, is guaranteed by the state in full. All you need to do is to obtain an industrial or commercial license. Given all this, it makes no sense to wonder why investors choose Dubai.
Some time ago, the question was raised about the introduction of property taxes, which, by the way, happens regularly. While the government has not come to a common opinion, therefore the city remains the most attractive place for investing financial capital. I want to believe that the current situation will remain the same, because today it is quite difficult to find at least approximate conditions that are offered to businessmen in Dubai.