After buying a condo in Dubai, are there any yearly taxes or other fees?

Last Updated on September 24, 2026 by Shitiz Srivastava

There is no annual property tax in Dubai. But owning an apartment does come with yearly costs: service charges, a municipality housing fee, utilities and insurance. These are fees for running and living in the building, not taxes on owning it, and they can take a real bite out of your rental yield. Here is what to budget for each year.

1. Service charges (the biggest yearly cost)

Every apartment owner pays an annual service charge to the building’s owners’ association. It covers security, cleaning, lifts, the pool and gym, common-area electricity, insurance of the building and a reserve fund for major repairs. Under the Jointly Owned Property Law (Law No. 6 of 2019), service charges must be approved by RERA, and they are paid through the DLD’s Mollak system.

Service charges are set per square foot, so they vary a lot by building. Mid-market apartment towers often charge somewhere around AED 12 to 25 per sq ft a year, and premium towers charge much more. For example, a 1,000 sq ft apartment at AED 18 per sq ft costs AED 18,000 a year. Check the approved rate for the exact building on the DLD’s service charge index before you buy. See typical ranges by area in our hidden costs of buying property in Dubai.

2. The Dubai Municipality housing fee

The housing fee is 5% of the property’s annual rental value, collected monthly through the DEWA (electricity and water) bill. If you rent the apartment out, your tenant pays it on their DEWA account. If you live in it yourself, you pay it, based on an estimated rental value. It is often mistaken for a property tax, but it is a municipal fee linked to whoever occupies the home.

3. Utilities and district cooling

DEWA bills electricity and water, and a refundable deposit is needed to open an account. Many towers use district cooling, which is billed separately by the cooling provider and can be a significant monthly cost in summer. Ask whether the building’s cooling is included in the service charge or billed separately. This makes a big difference to running costs.

4. Insurance, maintenance and management

• Home contents insurance: optional but inexpensive. If you have a mortgage, the bank will usually require property and life insurance.
• Repairs inside your unit: air-conditioning servicing, appliances and fittings are your responsibility, not the building’s.
• Property management: if you rent out the apartment through a manager, expect a fee, often a percentage of the annual rent.
• Ejari: each new tenancy must be registered on Ejari, which carries a small fee.

What stays tax-free

• No annual property tax.
• No UAE tax on rental income for individual owners.
• No UAE capital gains tax when an individual sells.

The exception for Indian tax residents: if you are still a tax resident of India, rent from your Dubai apartment is taxable in India, and so is any gain when you sell. You must also declare the property in your Indian tax return. See our NRI tax rules for Indians in Dubai.

Budgeting example

Take a 1,000 sq ft apartment that rents for AED 100,000 a year, with service charges of AED 18 per sq ft. The owner pays AED 18,000 in service charges, and the tenant pays the housing fee and utilities. Before management fees, maintenance or empty months, the rental income falls from AED 100,000 to about AED 82,000. That is why net yield is always lower than the headline gross yield. Run your own numbers with our Dubai rental yield calculator.

Also Read : Renting vs Buying Property in Dubai: A Decision Guide for Indian Expats