Dubai continues to be one of the most attractive real estate markets for investors from India, Europe and North America. Many foreigners choose Dubai for tax-efficient rental income, transparent property laws, and a stable regulatory environment. But as a global buyer, your real wealth depends not on gross rent, but on net returns — after fees, costs, and all expenses.
At Aimed Advisors, we help international buyers run realistic return models to avoid surprises and maximize return.
Dubai offers a highly favorable property-tax regime for individuals. As of 2025:
These benefits often make “Dubai real estate returns” more favorable than many western or Indian markets.
But the cost of ownership is not zero. To buy and maintain a property, you must factor in transfer fees, registration charges, ongoing maintenance, and overheads typical in real-estate.
When you buy a property in Dubai, expect certain mandatory fees. These are not “taxes” in the conventional sense (like annual property tax), but real transaction and maintenance costs.
Once you own the property, recurring costs include:
When you sell the property, again DLD charges a transfer fee (4% of sale value) to register the change of ownership.
Because of this structure – mostly one-time fees + recurring maintenance – many international investors find “Dubai buy-to-let returns” quite clean compared to heavily taxed real estate markets elsewhere.
To understand what you really earn, you must go beyond gross rent. Here’s a simple way to gauge net returns.
2. Subtract all annual costs: service charges, maintenance, repairs, property-management costs (if any), vacancy allowance, insurance, etc.
3. If you financed the purchase, subtract mortgage interest and banking fees.
4. For the first year, also subtract one-time purchase costs (DLD fee, registration/admin fees, agent commission).
5. Divide net income by total investment cost (purchase price + purchase-related fees + any upfront costs). That gives you net yield (usually expressed in %).
This yields a realistic picture of returns. Many buyers overestimate by using only gross rent — but net yield shows the true income after all costs.
You enjoy Dubai’s tax-free structure for rental income and capital gains. That’s a strong incentive. But remember: when you repatriate rental income or sale proceeds to India, you may have to comply with Indian tax laws. Keep full documentation of rent, sale, costs and proof of DLD fee payment to claim any treaty benefits or report income correctly.
Dubai’s lack of recurring property tax and rental-income tax gives you a major edge over European markets. Combined with modest upfront fees and transparent rental laws, this can result in high net returns. Still, check your home country regulations — you may need to report foreign asset or income depending on domicile/residency.
You benefit from tax-free rental income in Dubai. But on repatriation or sale, you may need to report foreign income / capital gains depending on your home country’s tax code. Also consider currency exchange risks when converting AED to USD/CAD. Always run a conservative cash-flow model.
Why many global investors favor Dubai:
What to watch carefully:
At Aimed Advisors, we specialise in assisting global clients evaluate Dubai real estate from a realistic, data-driven perspective. We help you:
With our support, you avoid common pitfalls and plan investments with clarity.
Dubai remains one of the most investor-friendly markets globally. Its tax-free rental income, absence of recurring property tax, and transparent fee structure give foreign buyers a strong edge. But good returns come only when you account for all costs and plan carefully.
If you’re serious about investing – from India, UK/Europe or North America – take the time to run a full net rental yield calculation. Use conservative assumptions for maintenance, vacancy, and currency conversion.
Want help building a custom ROI model? Or a full “Dubai Net Return Calculator” template for your currency and home-country tax scenario?
Reach out to Aimed Advisors – we’ll guide you step by step.
