Dubai fees versus UK stamp duty
Buying a Dubai property costs roughly 8% of the price in government and registration fees: a 4% transfer fee paid to the Dubai Land Department and a 4% administrative fee typically paid to the developer or broker. By comparison, UK stamp duty land tax on a second home or a company purchase runs from 5% to 17%, and an additional 3% surcharge applies to additional dwellings. The Dubai fee is a flat 4% regardless of price, with no banded escalators.
- First-home SDLT relief in the UK does not apply to Dubai purchases.
- Non-UK resident SDLT surcharge adds a further 2% if you buy a UK home while non-resident.
Tax on rental income for UK residents
The UAE levies no income tax on rental income. As a UK resident, you must declare the Dubai rental to HMRC on your Self Assessment, and it is taxed at your marginal UK rate after deducting allowable expenses (service charges, management fees, mortgage interest restricted to 20% credit, depreciation is not allowed). If you are non-UK domiciled and claim the remittance basis, foreign rental kept outside the UK may not be taxable until remitted, though the remittance basis has been restricted since 2017 and is closing further.
- Report the property and any overseas income on SA106 each tax year.
- Mortgage interest relief is restricted to a 20% tax credit, not full deduction.
- Capital gains on sale are taxable in the UK as a chargeable gain, annual exemption applies.
The 10-year Golden Visa in pounds
An investment of AED 2 million, approximately £430,000 at current rates, qualifies you, your spouse and children for a 10-year renewable UAE Golden Visa. Many Sobha apartments in Sobha Hartland, Siniya Island and Sobha Central start near or above this level, and the visa requires no minimum stay to renew. Holding the visa does not, on its own, change your UK tax residency.
Remote purchase and the Power of Attorney
British buyers can complete a Dubai purchase largely remotely. A Notarised and Apostilled Power of Attorney, arranged through a UK notary and the FCDO Legalisation Office, lets a representative in Dubai sign the SPA, register the title and handle handover. We coordinate the POA drafting, the escrow transfer and the Oqood (off-plan) or Title Deed registration so only a short visit is needed for key collection.
How we help British buyers
Typical situations our advisors handle, and the questions buyers ask first.
A London professional who has never bought abroad and wants a one-bed in Sobha Hartland without flying out for every step.
- “Can I buy and sign everything from the UK?”
- “What do I pay on top of the price?”
- “Who checks the snagging at handover if I am not there?”
How we help: We shortlist units by budget, walk you through the Sales and Purchase Agreement on a video call, arrange e-signing and the DLD registration, and coordinate a handover inspection on your behalf.
A Manchester landlord squeezed by Section 24 and higher UK stamp duty, comparing Dubai net yields against their UK portfolio.
- “How does Dubai rental income sit with HMRC?”
- “What service charges should I budget for?”
- “Can you manage tenants once it completes?”
How we help: We give realistic rent and service-charge figures per project, introduce vetted property managers, and point you to UK tax advisers familiar with overseas rental income.
A family in Birmingham planning a move in two to three years who want residency secured through the purchase.
- “Does an off-plan purchase qualify for the Golden Visa?”
- “Can my spouse and children be included?”
- “How long does the visa process take?”
How we help: We match you to units that clear the AED 2 million threshold, explain the off-plan conditions, and connect you with the visa service provider for family sponsorship.
A founder opening a UAE company alongside the home purchase and needing a local bank account.
- “Should I buy in my name or through a company?”
- “Which free zone suits my business?”
- “Can I open a UAE bank account before I move?”
How we help: We introduce licensed company-formation and banking partners, and structure the timing so your purchase, licence and residency line up.