Question 1

Is there really 0% tax on rental income in Dubai?

Accepted Answer

Yes. In the UAE there is no personal income tax, no capital gains tax, no stamp duty on resale, and no annual property tax. A Dubai property earning AED 90,000/year in net rent retains the full amount. This tax advantage alone is worth 1.8–2.5 percentage points of effective yield compared to equivalent UK or European markets.

Question 2

What is a good net rental yield in Dubai in 2026?

Accepted Answer

Net rental yields in Dubai in 2026 range from 3.8% (ultra-prime Palm Jumeirah villa) to 7.2% (small 1-bed in JVC or Arjan). The strongest risk-adjusted yields are in communities with AED 8–14/sqft service charges and strong rental demand — JVC, Business Bay, and Al Furjan consistently hit 5.5–6.5% net.

Question 3

Can foreigners buy property in Dubai?

Accepted Answer

Yes. Foreigners can own freehold property in any of Dubai's 70+ designated freehold zones including Downtown, Dubai Marina, Business Bay, JVC, Palm Jumeirah, Dubai Hills Estate, and Creek Harbour. No residency or local partner is required. The purchase is registered directly with the Dubai Land Department in the buyer's personal name.

Question 4

What are the actual purchase costs in Dubai?

Accepted Answer

Full Dubai property purchase cost stack: DLD transfer fee 4%, real estate agent commission 2%, title deed and trustee fee ~AED 4,000, mortgage registration 0.25% of loan (if financed), valuation AED 2,500–5,000. Cash buyers: total ~6.5% of purchase price. Financed buyers: ~7–7.5%.

Question 5

What is the best free Dubai ROI calculator?

Accepted Answer

The Altamimi ROI Calculator at roi.altamimirealestate.com is the only free tool that applies the full ROI model — deducting DLD fees, agent commission, service charges, management fees, and vacancy before calculating net yield, cash-on-cash return, IRR, and break-even month. It handles off-plan construction periods, mortgage amortisation, and capital appreciation. No signup required.

Question 6

Off-plan vs ready property — which has the better ROI?

Accepted Answer

Neither categorically. Off-plan wins only if the launch discount exceeds the combined cost of foregone rent during construction, delay risk, and post-handover supply effect. Ready properties pay rental income from day one with no developer risk. Use the Altamimi ROI Calculator to model both scenarios side by side before deciding.

Year	Payment	Principal	Interest	Balance	P / I Split
Year 1	AED 107K	AED 35K	AED 71K	AED 1.56M	33% P67% I
Year 5	AED 107K	AED 42K	AED 64K	AED 1.41M	40% P60% I
Year 10	AED 107K	AED 53K	AED 54K	AED 1.16M	50% P50% I
Year 15	AED 107K	AED 66K	AED 40K	AED 858K	62% P38% I
Year 20	AED 107K	AED 83K	AED 24K	AED 477K	78% P22% I
Year 25	AED 107K	AED 104K	AED 3K	AED 0	98% P2% I

Dubai Mortgage Calculator

Get the best rate for your mortgage

Amortisation Schedule

Mortgage Calculator — Common Questions