Transfer TaxThe tax is imposed on transfer of real estate or sale of shares in property holding companies.
The rate varies according to the emirate, e.g. in Dubai the tax rate is 4%.
Municipality TaxFor residential rental and hotel services the tax is imposed by the local municipality.
The rate varies according to the emirate. E.g. in Dubai the rate is 10% for commercial real estate.
The tax is divided between the seller and buyer in equal parts.
Customs Duty and Excise TaxIn general a customs duty of 5% is imposed on imports to the UAE.
A higher or lower rate applies to certain goods.
Imports into free trade zones, FTZ, are exempt from the customs duty.
Excise tax is in force in the UAE starting October 1, 2017.
The tax is imposed on tobacco, including electronic smoking and carbonated and sweetened drinks.
The tax rate is 100% on tobacco products and energy drinks, 50% on carbonated and sweetened drinks.
Hotel TaxThe hotel tax is imposed in most of the Emirates on the hotel's income from services.
There is also a tourism dirham fee levied on hotels graded as 2-5 star.
The higher ranking the higher fee.
In Dubai the fee varies from AED 7 to 20 per night per room.
In addition, in Dubai and Abu Dhabi there is a municipality fee of 4%/7%.
Inheritance and gifts tax
No tax is levied in the UAE on such income.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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