UAE property taxes for an owner from Russia

An apartment in Dubai was bought for AED 1.5 million and sold three years later for the same amount. The gain in dirhams was zero. The UAE charged no tax: there is none for a private apartment owner there. But in Russia, this transaction gives rise to ₽1,077,000 in tax if the dirham rose from ₽20 to ₽25 over those three years (the rates are illustrative). The sections below explain where tax without a profit comes from, after what ownership period it becomes zero, and when the owner of a Dubai apartment stops owing Russian tax altogether. They also cover the fees charged in the UAE instead of taxes, how much tax is paid on rental income, what changed under the agreement between the two countries in 2026, and six mistakes that cost money.

What taxes apply in the UAE and why apartments are exempt

The UAE has no personal income tax. That means no tax on rental income or on the sale of an apartment. Two other taxes can affect an apartment owner: corporate tax and VAT, and both only in special cases.

Corporate tax. It has applied since 2023: 0% on profit up to AED 375,000 and 9% above that. An individual pays it only if they run a business with annual turnover above AED 1 million. Income earned by an individual from the sale, leasing or subleasing of real estate is not regarded as business income at any turnover, provided that a licence is not required for the activity. You do not need to register with the tax authority.

It does not matter how many apartments you have or how much they earn. A tenancy contract registered in Dubai's Ejari system or Abu Dhabi's Tawtheeq system is not considered a licence.

VAT. The sale and letting of residential property, apart from the first supply, are VAT-exempt. The first sale or lease of a new building within 3 years of handover is zero-rated. An owner with only residential property does not need to register for VAT. Commercial property is different: an office, shop or warehouse. Their sale and letting are taxed at 5%, and the owner must register when 12-month revenue exceeds AED 375,000, or when it is expected to exceed that threshold within the next 30 days.

An apartment owner in the UAE pays no taxes, but that does not make the transaction free. Fees apply instead, and the first comes before handover.

Fees instead of taxes: the cost of registering a transaction

The main payment on purchase is the Land Department fee. In Dubai, it is 4% of the contract value. By law, the fee is split equally between the seller and buyer unless they agree otherwise. When buying an off-plan property from a developer, the seller pays 2% and the buyer 2%. In practice, the contract states how much each pays, and that is worth checking before you sign.

In Abu Dhabi, the property-sale fee is at least 1% and no more than 4% of the price, split equally by seller and buyer unless they agree otherwise. The emirate's Executive Council sets the exact percentage. For an off-plan property, the fee is 2% of the price, split equally between the parties, capped at AED 2 million per transaction. The centre confirms the exact amount when you book the appointment.

A municipal fee is charged on homes every year. In Dubai, the tenant pays the municipality 5% of the annual rent, included with the electricity and water bill. In Abu Dhabi, it is also 5% of annual rent, with a minimum of AED 450 a year. UAE nationals are exempt. For villas on residential land granted by the state, the rate is 2.5% to 10%. The tenant, not the owner, pays it. The owner's other costs, from service charges to cooling, are covered in the article on owning an apartment in Dubai.

For a typical owner, that is the end of the list of payments in the UAE. There are, however, two situations in which zero becomes 9%.

When tax does apply in the UAE

The exemption applies while letting an apartment remains a personal investment. The most common exception is short-term letting. To let an apartment to tourists in Dubai, you need a holiday-home permit from the Department of Economy and Tourism. That permit is treated as a licence, and the income becomes business income. If the annual turnover of that business exceeds AED 1 million, the owner must register for corporate tax and pay 9% on profit above AED 375,000.

Not having a licence does not avoid the issue. If the law requires one for the activity and you let without it, the tax authority will still treat the income as business income, with the same turnover threshold. If you place the apartment with a management company for short-term letting, check whose name the permit is in and who receives the guests' payments, then discuss this with a tax adviser.

The second situation is an apartment owned by a company. The company has its own corporate-tax rules, while its Russian owner acquires obligations to the Russian tax authority. These are covered below in the section on companies.

Tax residency: days, not your passport, decide

The answer determines everything else in this article: whether you pay Russian tax on an apartment in Dubai. For tax purposes, the key is not your passport but the number of days. You are a Russian tax resident if you spend 183 calendar days or more in Russia over any consecutive 12-month period. A short trip abroad for treatment or study lasting under six months does not interrupt this period. A Russian resident pays tax on all income, wherever it arises. A non-resident pays only on Russian-source income. Rent from, and sale of, an overseas apartment are foreign-source income.

The UAE has its own rules, effective from 1 March 2023. You are a UAE tax resident if at least one of the following applies:

• your usual place of residence and centre of personal and financial interests are in the UAE;
• you spent 183 days or more in the UAE over any consecutive 12-month period;
• you spent 90 days or more there, hold a residence permit, and have a permanent home, job or business in the UAE.

Any part of a day counts as a full day, and the days need not be consecutive. The permanent home need not be owned: a rented apartment also qualifies.

You can be resident in two countries at once, and apartment owners in Dubai often are: six months in Moscow, four months in their own Dubai apartment. This is the situation the agreement between the two countries addresses.

The Russia-UAE agreement: what changed in 2026

Russia and the UAE signed a new double-taxation agreement on 17 February 2025. Russia ratified it by law on 7 July 2025; it entered into force on 18 July 2025 and applies from 1 January 2026. The previous 2011 agreement covered only the income of sovereign investment funds and did not affect private apartment owners.

Three articles matter for an apartment. Income from letting or selling real estate may be taxed in the country where it is located. ‘May’ does not mean ‘only there’: your country of residence also levies its tax. Russia credits UAE tax against Russian tax, up to the Russian amount. The UAE charges no tax on a private individual's apartment, so there is nothing to credit: a Russian resident pays the full amount in Russia.

If you are resident in both countries, the agreement selects one in this order:

You cannot choose the country yourself under this order: if the tax authority asks, you will need documents to support your position. The main one is a UAE tax residency certificate. It does not need an apostille. Work out how the order applies to your circumstances with a tax adviser before filing a return, not afterwards.

UAE tax residency certificate: AED 1,050 and 10 days

The UAE tax authority issues the certificate through the EmaraTax account, under Other services. It is issued for a past period of no more than 12 months, not for the future. You need an Emirates ID with a residence visa, or a passport copy together with an entry and exit record from the Federal Authority for Identity and Citizenship. If you spent 90 to 182 days in the UAE, also provide evidence of employment, a business or a permanent home: an attested tenancy contract or title deed with a utility bill in your name.

The certificate is for anyone who lives in two countries. If there is no dispute and you are a Russian resident, what remains is the arithmetic: exactly how much of the rent and sale proceeds goes to tax.

Tax on rental income: how much of Dubai rental income goes to Russia

A Russian resident who lets an apartment in the UAE calculates their own tax, files a 3-NDFL return by 30 April of the following year and pays tax by 15 July. There are no tax agents abroad to do this for you.

Each payment from the tenant is converted into roubles at the Central Bank's exchange rate on the day the money is received. If the tenant pays with several cheques, each cheque has its own date and rate.

Rental income is taxed on the same scale as salary: 13% up to ₽2.4 million a year, 15% up to ₽5 million, 18% up to ₽20 million, 20% up to ₽50 million and 22% above that. It is combined with salary in a single tax base. Because rental income is added to salary, someone with a high income in Russia pays more tax on the same Dubai apartment.

Can you rent out an apartment in Dubai as a self-employed person in Russia and pay 4% or 6%? The self-employment law requires the activity to be based in a region of Russia, so this is not a reliable option. Discuss other tax regimes, such as the simplified tax system for entrepreneurs, with an accountant.

Tax on sale: why tax arises with no profit

This is where the million from the start of the article comes in. Selling an apartment in the UAE generates foreign-source income. A Russian resident pays tax on it in the same way as on the sale of an apartment in Russia, with the same deadlines and deductions.

Ownership period. No tax is due if you have owned the apartment for five years or more. Three years is sufficient if you inherited it, received it as a gift from a family member or close relative, acquired it through privatisation or under a life-annuity agreement, received it from a personal fund, or if it is your only home. The law does not distinguish apartments by country. Before selling within five years, check with a tax adviser and keep a document showing the date from which you have owned the apartment.

Calculation. If the period has not elapsed, tax is calculated on the tax base: the sale price less a deduction. You may choose either a ₽1 million deduction without supporting documents or documented purchase costs under the contract and payment records. The rate is 13% on a tax base up to ₽2.4 million and 15% above that. The ₽2.4 million threshold is based on the total of the relevant income for the year: income from sales, property received as a gift, dividends, securities, insurance payments and certain other income. Salary and rental income are excluded, as they have their own scale. The rule based on 70% of cadastral value does not apply to an apartment in the UAE: it applies only where cadastral value exists in the Russian register.

Exchange rate. The sale price is converted at the rate on the day the money is received; purchase costs, at the rate on each payment date. If the dirham has risen against the rouble in the meantime, a tax base arises even when you sell for the same number of dirhams you paid.

Bought an off-plan property on an instalment plan? Each payment to the developer is converted at the rate on its date. Keep not only the contract but every dated payment record. Without them, if you sell before the minimum holding period expires, you will only have the ₽1 million deduction.

How the sale of an apartment in the UAE affects the sale of a Russian one, and what changes when you sell an apartment in Russia while living abroad, is explained in the guide on tax when selling an apartment.

If you are no longer a Russian resident: zero has a cost

Anyone who has spent fewer than 183 days in Russia over any consecutive 12-month period is a non-resident. A non-resident pays Russian tax only on Russian-source income. Rent from and the sale of an apartment in the UAE are not such income, so you do not need to declare them in Russia. Under the agreement between the two countries, a person who pays Russian tax only on Russian income is likewise not considered a Russian resident.

Returning to Russia? Count the days first. 183 days over any consecutive 12-month period makes you a resident again. Keep evidence: passport stamps and the UAE entry and exit record.

Non-residency carries its own cost: on the early sale of an apartment in Russia, you pay 30% with no deductions and cannot claim the purchase deduction. This is covered in detail in the guide to tax on apartment sales.

Which documents to keep so you do not lose the deduction

Documents in English and Arabic should be translated into Russian in advance for the Russian tax authority. A private apartment owner will not need to claim a credit for tax paid in the UAE, as no such tax is charged there.

UAE bank account: one month to notify, and a fine of up to 40%

You cease to be a Russian tax resident when you spend fewer than 183 days in Russia over 12 months. Currency residency does not work that way. Tax residency and currency residency are different things. Russian currency residents include every Russian citizen, wherever they live, and foreign nationals with a Russian residence permit. Their obligations for overseas accounts are as follows:

The ₽600,000 threshold applies to banks in Eurasian Economic Union member states and countries that participate in the automatic exchange of financial information. The UAE is on that list. The Bank of Russia's limits on foreign-currency transfers abroad for Russian citizens were lifted from 8 December 2025.

An apartment owned by a company: reporting rather than savings

Sometimes an apartment in the UAE is bought through your own free-zone company. For the Russian tax authority, this is a controlled foreign company if your share exceeds 25%, or exceeds 10% where Russian residents together hold more than half. You must notify the authority of your participation in the company within three months, and of the controlled company itself each year by 30 April. The fine for not filing the controlled-company notification is ₽500,000 for each company; for not reporting participation, ₽50,000. The profit of such a company may be taxable in Russia in the hands of its owner. The decision to buy through a company should be made with a tax lawyer, not simply to make the paperwork easier.

Owner's calendar: four dates a year

Late filing carries a fine of 5% of unpaid tax for each full or partial month, capped at 30% and with a minimum of ₽1,000. Non-payment carries a fine of 20% of the tax, or 40% if the tax authority proves intent. A law dated 26 June 2026 exempted sellers from the fine for not filing a property-sale return where the tax authority receives the details from Russian registers. A UAE apartment is not recorded in a Russian register, so this exemption does not apply to it.

What you do not see when buying

Six costly mistakes

What to do now: a quick guide by situation

How the purchase works, from reservation to title deed, is covered in the guide How to buy property in the UAE. What exactly you own in a freehold zone is explained in the article on freehold ownership.

Quick answers

Is there property tax in the UAE?
There is no personal income tax in the UAE: letting and selling your own apartment without a licence are not taxed. Fees do apply: in Dubai, a fee of 4% of the value is payable when a transaction is registered, split equally by law between the seller and buyer, while a tenant pays a municipal fee of 5% of annual rent.

Do I have to pay Russian tax on rental income from a Dubai apartment?
Yes, if you are a Russian tax resident, meaning you spent 183 days or more in Russia during any consecutive 12-month period. Rental income is taxed alongside salary at rates from 13% to 22%; the 3-NDFL return is due by 30 April and tax by 15 July.

What tax does a Russian resident pay when selling an apartment in the UAE?
If you have owned the apartment for less than five years, tax is 13% on the taxable base up to 2.4 million ₽ and 15% above that. The base is the sale price less purchase costs, or less 1 million ₽. Both amounts are converted into roubles at the Central Bank rate on their respective dates.

Does the double-taxation treaty between Russia and the UAE apply?
Yes. The new treaty was signed on 17 February 2025, entered into force on 18 July 2025 and applies from 1 January 2026. Tax paid in the UAE is credited against Russian tax, but there is no UAE tax on a private individual's apartment, so a Russian resident pays the full amount in Russia.

Does a non-resident of Russia pay tax on rental income from a UAE apartment?
No. A non-resident pays Russian tax only on income from Russian sources, and rent from an apartment abroad is not one of them.

How do you become a UAE tax resident?
Spend 183 days in the UAE during any consecutive 12-month period, or 90 days with a residence visa and permanent accommodation or employment in the country, or make the UAE your main place of living and the centre of your interests. A tax residency certificate issued through EmaraTax confirms this status.

Do I have to notify the tax authority about a UAE bank account?
Yes. A Russian citizen must notify the tax authority of opening an overseas account within one month and submit a report on cash flows by 1 June. No report is required if annual credits to, and debits from, the account do not exceed 600,000 ₽. Anyone who spent more than 183 days abroad during the year is exempt from these duties.

Is Russian property tax payable on an apartment in Dubai?
No. Russian property tax is payable only on property located in Russia.

Konstantin Nazarov

Co-founder of Art Estate · Guide dated 1 October 2026 · author's Telegram channel

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