Selling Property In Dubai As A Non‑Resident: Complete Tax And Legal Guide

A Clear, Official-Style Roadmap For Overseas Owners

Non-resident owners frequently ask whether they can legally sell their Dubai apartment or villa from abroad, what the Dubai Land Department (DLD) will require, and whether any “Dubai property tax for non-residents” or capital gains tax applies on the sale. This guide is designed for non-citizens who own freehold or other real estate interests in Dubai and want a precise, government-aligned explanation before committing to a transaction.

Drawing on DLD and Federal Tax Authority guidance, the article sets out who can sell, which authorities you will deal with, how Dubai Land Department sale registration works (including remote property registration), what fees you should budget for, and how UAE income tax, corporate tax and VAT apply to residential and commercial properties.

For properties in those designated freehold areas, DLD issues an official Dubai Land Department title deed in the owner’s name. Freehold rights are not time-limited, while usufruct and long leases are governed by their contract terms and the maximum periods set by law. Once your right is registered and you hold a valid title deed, you are generally free to sell or otherwise transfer that interest, subject to DLD procedures and any contractual conditions with the developer or mortgagee.

Non-resident status on its own does not restrict your ability to sell property in Dubai. The key conditions are that the property is in an area where foreigners may own, the right is properly registered with the DLD, and the transfer is completed through the appropriate DLD registration service, whether you appear in person, appoint a representative, or use remote registration.

Where you do not attend in person and rely on a representative, the DLD requires an official legal power of attorney to be presented for the relevant service. The power of attorney must clearly authorise the representative to sign sale and transfer documents on your behalf and will be checked before the transaction is processed.

The DLD has also introduced a remote property registration system that allows owners to complete certain sale transactions from anywhere in the world. Using audio-visual communication, the DLD verifies the owner’s identity and obtains confirmation of their approval for the transaction, removing the need for physical presence in Dubai or for appointing a local representative in many cases.

In addition, the DLD operates a “Title Deed Modification” service to record changes in ownership data, such as the owner’s name, nationality or passport number. For non-resident owners, this typically requires a copy of a valid passport and, if the owner is not attending, a suitable power of attorney. Keeping these records current ensures future sale registrations or other procedures can proceed without delay.

2. Prepare Documents And Clearances

Once you have a buyer or have chosen an auction route, gather the required documentation. For a standard private sale using the DLD sale registration service, key documents for individuals include:

• Identity documents for seller and buyer: Emirates ID for residents or a valid passport for non-resident foreigners.
• An electronic No-Objection Certificate (e-NOC) from the developer for freehold properties, confirming that no outstanding obligations are preventing the transfer.
• Any legal power of attorney, if a representative will sign instead of you.

3. Execute The Sale At A Trustee Centre Or Via Remote Registration

In a standard direct sale, the parties usually attend a Real Estate Registration Trustee centre in Dubai. The trustee verifies identities, checks the title deed and supporting documents, reviews the sale contract, and ensures that the required cheques and payments for Dubai Land Department fees for sellers and buyers are in place before submitting the transaction to the DLD.

For eligible transactions, a non-resident owner may use the DLD’s remote registration system instead of attending in person. Through secure audio-visual communication, DLD staff confirm your identity using your passport, verify your intention to proceed with the sale, and supervise the exchange of the necessary instructions and clearances. This is particularly useful for anyone asking how to sell an apartment in Dubai from abroad without travelling.

In both cases, once the trustee or DLD is satisfied that all conditions are met, the transaction is lodged for registration, and the transfer fee and any trustee or service partner charges are collected.

Where the transaction is processed through a Real Estate Registration Trustee centre, the DLD’s service partners also charge trustee fees. Currently, these DLD trustee fees are:

• AED 4,000 plus VAT for properties with a sale value of AED 500,000 or more.
• AED 2,000 plus VAT where the sale value is below AED 500,000.

For auction transactions, the DLD applies the standard 4% transfer fee on the sale value, in line with regular sale registration rules. In addition, an auction supervision fee is charged to the seller: 1% of the sale value (capped at AED 30,000) for public auctions, or AED 10,000 for electronic auctions, together with the usual title deed, map, knowledge and innovation fees.

In sales of inherited property, the “sale procedure (heirs)” service applies the same structure: 4% of the sale value to buyer, the standard title deed and map fees, and trustee/service partner fees of AED 4,000 plus VAT for sales of AED 500,000 or above, or AED 2,000 plus VAT where the sale value is under AED 500,000.

For natural persons, including non-residents, the Federal Tax Authority explains that UAE Corporate Tax only applies if they conduct a “Business or Business Activity” in the UAE and their turnover from such activities exceeds AED 1 million in a calendar year. Real estate investment income and personal investment income are not considered Business or Business Activities for this purpose. As a result, a non-resident individual who simply holds one or more Dubai properties as a personal investment, receives rent, and occasionally sells units, is generally beyond the scope of UAE Corporate Tax.

For non-resident natural persons, corporate tax could in principle apply where income is attributable to a UAE permanent establishment or where State-sourced income is subject to withholding tax. However, current Federal Tax Authority guidance sets UAE withholding tax on State-sourced income, including income from UAE property, at 0%. When considering the tax implications of selling investment property in Dubai for non-residents, it is still sensible to take separate advice on how your home country taxes foreign real estate gains, as this article only covers UAE rules.

In contrast, VAT rules on selling commercial property in Dubai are different. Supplies of commercial buildings – such as offices, shops, warehouses, serviced apartments and many short-term lets – are generally subject to VAT at 5%. Sellers who are VAT-registered must charge 5% VAT on these taxable supplies, and buyers who are VAT-registered may be able to recover that VAT as input tax, subject to the usual rules. Where a rented or partly rented commercial building is sold as a transfer of a going concern to a taxable person, and the specific conditions for such a transfer are met, no VAT is charged on the purchase: the seller does not charge VAT, and the buyer does not pay VAT on the acquisition.

Real estate located in VAT “Designated Zones” is treated differently again. Under the Designated Zones VAT regime, certain supplies of real estate located within a Designated Zone are outside the scope of UAE VAT, and raw materials used to construct such real estate in the same Designated Zone can also be VAT-free. The exact treatment depends on the zone, the nature of the building and the type of supply, so that specialist advice may be appropriate for complex projects.

Overall, natural persons investing in UAE real estate in their personal capacity do not have to register for corporate tax for real estate investment income; any VAT registration obligation depends primarily on whether they are manufacturing taxable commercial supplies that exceed the VAT registration threshold.

FAQ About Selling Property In Dubai As A Non‑Resident

How do I sell Dubai property if I live abroad?

If you live outside the UAE and wish to sell, you can either travel to Dubai and complete the transaction at a Real Estate Registration Trustee centre, appoint a representative through a properly drafted power of attorney, or use the DLD’s remote registration system. When selling an apartment in Dubai from abroad, the key is to ensure your passport details match your DLD title deed, you obtain an electronic NOC from the developer (for freehold properties), agree the sale terms with the buyer, and use the DLD sale registration service via a trustee or remotely.

What documents are required to sell a flat in Dubai as a non-resident?

The core documents required to sell property in Dubai as non-residents are: your valid passport (and Emirates ID if you hold one), the buyer’s passport or Emirates ID, the original DLD title deed, an electronic NOC from the developer for freehold units, and a power of attorney if someone will sign on your behalf. For mortgaged properties, you must also provide a recent liability letter from the bank or developer and the required manager’s cheques. Additional documents may be requested depending on the specific DLD service used.

Is there capital gains tax when selling Dubai property as a foreigner?

In the UAE, there is no separate capital gains tax when selling Dubai property. The UAE does not levy personal income tax on individuals, and profits from selling property held in your personal capacity are not subject to UAE personal income or capital gains tax. However, non-residents should consider whether their home country taxes gains on foreign real estate and seek advice there if necessary.

Do I have to pay UAE corporate tax when selling an investment apartment?

Generally, no, if you are an individual holding the apartment as a personal investment. The Federal Tax Authority states that real estate investment income of a natural person in their personal capacity is not treated as a Business or Business Activity and therefore falls outside UAE Corporate Tax. Corporate tax for natural persons only applies where they are conducting a taxable business in the UAE and their turnover exceeds AED 1 million a year.

Are there any ongoing Dubai property taxes for non-residents after a sale?

Beyond Dubai Land Department transfer fees and related registration charges collected at the time of sale, there is currently no recurring Dubai property tax for non-residents, like an annual municipal or ownership tax on individuals comparable to some other jurisdictions. Service charges and community fees set by developers or owners’ associations are commercial matters and are not a form of government property tax.

How does VAT apply if I am selling a rented office or shop?

For a rented office, shop or other commercial unit, VAT rules on selling commercial property in Dubai generally require VAT-registered sellers to charge 5% VAT on the sale price, as the supply of commercial real estate is a standard-rated taxable supply. If the buyer is a VAT-registered business using the property for taxable activities, they may be able to recover that VAT. Where the sale qualifies as a transfer of a going concern to a taxable person – for example, an ongoing rented building with leases transferred – the transaction could fall outside VAT, subject to the specific FTA conditions being met.

Can I use a power of attorney instead of travelling to Dubai to sign?

Yes. The DLD allows the use of an official legal power of attorney for services such as sale registration, mortgaged property sale, title transfer, Ejari user registration and initial or usufruct registration. The power of attorney must clearly authorise the representative to act in property transactions and must meet the relevant notarisation and legalisation requirements. This is a common solution for a non-resident selling property in Dubai who does not wish to travel.

Who pays the Dubai Land Department transfer fee of 4%?

The DLD charges a transfer fee of 4% of the sale price on most transfers. In practice, this 4% Dubai property transfer fee is usually paid in full by the buyer, although the parties may agree otherwise. The allocation is contractual and can be negotiated.