Real estate in the UAE is popular among investors today, as it offers favorable conditions for its acquisition. Thus, the demand among tourists and locals for renting residential real estate is constantly increasing, so the owner can rent it out for short-term or long-term rent.
The most expensive tax when buying remains the registration fee, which is 4%. Unlike other countries, the UAE does not have a property tax or a tax on income received.
Real estate abroad can be rented out for short-term or long-term rent. Before buying, you need to decide on the target audience, find out the type and volume of demand for rental housing. For example, a house by the sea can be in demand by vacationers in the warm season for both short and long periods. Income from real estate is taxed in the country of purchase – it is necessary to take into account all possible fees in advance. Of course, the transaction with the tenant must be concluded in accordance with the legislation of the country. In addition, income from real estate and banking transactions abroad may need to be declared in the home country: for example, this is required from tax residents in Russia. Whether you will have to pay income tax not only in the country of purchase but also in your home country depends on the amount of this tax abroad and the country itself: for example, to avoid double taxation, the Russian Federation has concluded agreements with a number of countries.