Buying in Dubai vs back home: no income tax, but plenty of fees

On a A$1 million purchase, the Dubai Land Department's 4% fee and NSW transfer duty land within a couple of thousand dollars of each other. The real differences are in where you can buy, how you borrow and what happens to your rent.

The short version

• Foreigners can own freehold in Dubai's designated areas, such as Dubai Marina and Palm Jumeirah, with no foreign buyer surcharge [1].
• The single biggest cost difference: in Dubai the buyer usually pays a real estate agent's commission of around 2% plus VAT on top of the 4% DLD fee [2][8]. Back home, the seller pays the selling agent and an Australian citizen pays no foreign surcharge [3][4].
• UAE Central Bank rules cap expat home loans at 80% of value for a first home up to AED 5 million [5].
• Rental income from property you own personally isn't caught by UAE corporate tax [6]. If you're still an Australian tax resident, though, the ATO wants its share.
• A property worth at least AED 2 million can support a 10-year Golden Visa application [7].

Can an Australian buy in Dubai?

Yes, in the right places. Dubai splits the emirate into areas where non-UAE nationals can hold property and areas where they can't. Regulation No. 3 of 2006 lists the zones where foreigners can take freehold ownership "without time restriction", or usufruct and leasehold rights of up to 99 years [1]. The list includes Dubai Marina, Palm Jumeirah, Emirates Hills, Jebel Ali, Al Barsha South, Mirdif, Al Jaddaf, The World Islands and plots along Sheikh Zayed Road [1]. The list has grown over the years, and plenty of well-known developments elsewhere are open to foreign buyers too. Ask the developer or the DLD trustee office to confirm the plot is in a freehold area before you sign.

Outside those areas, property is generally reserved for UAE and GCC nationals. There's no quota on how many units foreigners can hold in a building, and no approval process for a standard apartment or villa in a freehold zone.

Your passport doesn't change the rules much. An Australian, a Brit and an Italian all buy as "non-UAE nationals". What does change things is your residency: a UAE resident visa makes banks far more willing to lend, and owning enough property can get you that visa in the first place [7].

Off-plan or ready?

A lot of Dubai sales are off-plan, bought from a developer before completion. The 4% registration fee still applies, split between seller and buyer on paper, and the sale is recorded on the DLD's interim register (Oqood) until handover [2]. Off-plan also has a much lower loan cap, covered below.

Upfront costs side by side

Rates as at November 2026. Dirhams converted at about AED 2.58 per Australian dollar (RBA rate of US$0.7014 on 5 November 2026, with the dirham pegged to the US dollar).

At A$1 million, the headline transfer charges are close. The extras are what tip Dubai higher: agent commission, VAT on services and loan registration fees mean buyers commonly budget around 7% on top of the price. In NSW, the duty scale climbs to 5.5% above A$1.29 million [3], while Dubai's 4% stays flat however much you spend.

Getting a loan

In Dubai

UAE banks lend to expats under Central Bank rules. Since April 2020, the cap for an expatriate's first home is 80% of the value up to AED 5 million and 70% above that [5]. The rules set lower caps for second and investment homes and for off-plan property, along with a maximum loan term and a cap on how much of your income can go on debt repayments.

Those are ceilings, not promises. Banks set their own policies for non-residents, and if you don't live in the UAE, expect a lower LTV, a bigger deposit and fewer banks willing to talk. A UAE salary transferred to a local bank account makes life much easier.

Back home

Australian lenders will lend to citizens working in Dubai, but on tighter terms than for residents. Expect a smaller panel of lenders, lower maximum LVRs and some shading of your dirham income for currency risk. The plus side: as a citizen you don't need FIRB approval to buy a home, and NSW won't charge you surcharge purchaser duty [4]. A dirham salary is pegged to the US dollar, so lenders often treat it more kindly than an income in a volatile currency, but policies vary.

Holding costs

Service charges are the one to model carefully. Two apartments at the same price can carry very different annual bills depending on amenities and the age of the building. Ask for the last few years of service charge invoices before you commit.

The UAE side of rent is simple. The Australian side depends on you. If you've stayed an Australian tax resident while working in Dubai, your Dubai rent is part of your worldwide income and taxable in Australia. Most Australians who move to Dubai for work become foreign residents for tax, but it's a test of facts, not a box you tick, so check before you assume.

Selling and tax

Dubai

Individuals don't pay capital gains tax on a Dubai home held personally, and the UAE confirmed in 2023 that personal real estate income needing no licence sits outside the 9% corporate tax [6]. The costs at exit are the seller's share of the DLD fee, if your contract puts it on you, and the agent's commission, which on resales is a matter of negotiation and local custom rather than law.

Australia

Sell an Australian home while you're a foreign resident for tax and you generally can't claim the main residence exemption, unless you pass the narrow life events test [9]. Since 1 January 2025, the buyer must withhold 15% of the price on every Australian property sale unless the seller provides an ATO clearance certificate by settlement [10]. Foreign residents can't get a clearance certificate, so plan for the withholding and claim any excess back through a tax return.

Currency risk

The dirham is pegged to the US dollar, so a Dubai flat is effectively a US dollar asset from an Aussie point of view. If the AUD weakens before you sell and move home, you come out ahead; if it strengthens, your gains shrink. The reverse applies to a mortgage back home funded by a dirham salary.

A worked example

Illustration only. Same budget in both places: a AED 2,500,000 two-bedder in a freehold area such as Dubai Marina (about A$970,000) and a A$1,000,000 home in NSW. We assume the Dubai buyer pays the full 4% DLD fee and a 2% agent fee, as is common on resales. Loan, legal and inspection costs are left out.

The NSW sum: A$11,602 plus 4.5% of A$613,000. The Dubai sums: 4% of AED 2.5 million, plus the trustee fee and VAT, plus 2% commission and VAT.

Strip out the agent and Dubai's government charges come to about A$40,500, almost level with NSW. The agent fee is what makes the gap, and it's negotiable. Buy direct from a developer off-plan and you usually avoid a buyer-side commission, but you take on construction risk and a lower loan cap instead.

Which suits whom

There's no universal answer. These are the factors that change it:

• How long you're staying. The 6% to 7% you spend going in takes years of growth to recover. Short contracts make that harder.
• Your visa. A Golden Visa backed by AED 2 million of property gives you residence independent of your employer, but you must keep the property for at least two years after the visa is issued [7].
• Whether you're moving home. A home in Australia can become your residence later. Check how the main residence rules apply before you sell [9].
• Rental demand and service charges. Dubai rents can move quickly in both directions, and service charges keep coming whether the flat is let or not.
• Currency. Pegged dirhams against floating Aussie dollars cuts both ways.
• Estate planning. Owning in two countries means two legal systems for your will and your heirs. Get advice on both sides before you buy.

Want to compare notes with Australians who've bought in the Marina or JVC? Join Cooee United Arab Emirates, our Facebook group for Australians in the UAE, at /join/.

Sources

1. Regulation No. (3) of 2006 determining the areas of ownership of real estate by non-UAE nationals – Dubai Legislation Portal
2. Dubai Land Department fees explained: registration, transfer and trustee costs – haus & haus
3. How to calculate transfer duty – Revenue NSW
4. Surcharge purchaser duty for individuals – Revenue NSW
5. Amendments to Circular No. 31/2013 on mortgage loans (LTV for expatriates) – Central Bank of the UAE Rulebook
6. Will 9% corporate tax apply to personal income and investments? Ministry clarifies – Khaleej Times
7. Golden Visa for real estate investors – wasl
8. Dubai real estate buyer's guide: all costs and extra fees – Arabian Business
9. Main residence exemption for foreign residents – Australian Taxation Office
10. Foreign resident capital gains withholding overview – Australian Taxation Office

Keep reading

• Renting in Dubai as an Australian
• A tax-free salary in Dubai and your Australian tax
• Foreign income and Australian lenders: how your salary is assessed
• Deposit and LVR as an expat borrower: how much you need