A property in Dubai involves two tax systems: that of the United Arab Emirates and that of your country of residence. This guide sets out what the sources say as at November 2026. It is not tax advice; DACHMA Advisory does not give any. Please take your own case to a tax adviser licensed in your country of residence.
The UAE side
According to PwC’s summary (reviewed 9 September 2026), the UAE does not currently levy personal income tax on individuals, at either federal or emirate level. Under Cabinet Decision No. 49 of 2023, a natural person’s income from real estate investment that does not require a licence is not treated as a business activity and is therefore outside UAE corporate tax. Whether the same holds for licensed holiday letting is an open question for a UAE tax adviser.
We found no annual tax on property value in the sources. What exists in Dubai is the 4% registration fee on transfer and the municipal housing fee (see purchase costs).
All of this describes the UAE side only. Taxation in your country of residence is a separate matter.
Where the double taxation agreements stand
| Country | Agreement with the UAE | Position in November 2026 |
|---|---|---|
| Germany | none in force | According to the Federal Ministry of Finance’s overview, the 2010 agreement applied until 31 December 2021. No successor agreement is in force. |
| Austria | in force (BGBl. III No. 88/2004) | Applicable since 1 January 2005; revised by a protocol (BGBl. III No. 211/2022) applicable since 1 January 2023, with a switch to the credit method. |
| Switzerland | in force (SR 0.672.932.51) | In force since 21 October 2012; amending protocol in force since 5 May 2025, mostly applicable from 1 January 2026. |
Germany
In its overview as at 1 January 2026 (letter of 7 January 2026), the Federal Ministry of Finance lists the agreement with the UAE as applicable until 31 December 2021. German national law therefore applies on its own. People resident in Germany are generally taxed there on their worldwide income.
Two provisions matter particularly to buyers. Section 23 of the Income Tax Act (EStG) covers private sales of real property where no more than ten years lie between acquisition and sale; its wording is not restricted to property in Germany, and there is an exception for property used exclusively as the owner’s own home. Section 34c EStG provides that foreign tax on foreign income is credited under certain conditions.
Tax advisers draw a general conclusion: rental income from a property in Dubai, and a gain on its sale within ten years, can be taxable in Germany, and because the UAE levies no income tax on them there is normally nothing to credit. Only your tax adviser can assess your case.
Austria
The agreement between Austria and the UAE is in force. Under Art. 6, income from immovable property may be taxed in the state where the property is situated. The amending protocol replaced the exemption method with the credit method; according to KPMG, UAE income that was previously exempt is now subject to full taxation in Austria for Austrian residents. In April 2026 the Council of Ministers authorised negotiations on a further amending protocol; we are not aware of any signature. How rent and sale gains are taxed in detail is a matter for an Austrian tax adviser.
Switzerland
Under the agreement between Switzerland and the UAE, income from immovable property situated in the UAE, and gains on its sale, may be taxed there (Arts. 6 and 13). Under Art. 22, Switzerland exempts such income but may take it into account when setting the tax rate on the resident’s other income (exemption with progression). The amending protocol inserted a restriction into Art. 22 whose practical effect on private property income must be assessed by a Swiss tax adviser. We have not examined cantonal wealth tax or debt-interest allocation.
Exchange of information
The UAE takes part in the automatic exchange of information on financial accounts under the OECD standard. For Germany, a specialist database shows the UAE on the list of exchange states for 2026. The standard covers bank and custody accounts, not land registers.
Questions for your tax adviser
- How will rental income and a later sale gain be taxed in my case?
- Which costs and losses can I claim?
- What changes if I buy through a company, and which reporting duties arise?
- What applies to inheritance and gifts?
- What follows if I later move abroad?
For these we refer you to independent professionals. Get in touch if you would like to discuss your plans.
Key points
- The UAE does not currently levy personal income tax on individuals; that concerns the UAE side only.
- Germany: no double taxation agreement with the UAE in force since 31 December 2021; income and gains can be taxable in Germany.
- Austria: agreement in force, with the credit method since 2023.
- Switzerland: agreement in force, amending protocol since 2025; exemption with progression, subject to a new restriction.
- In all three countries the individual case decides. Clarify it before you buy.
Frequently asked questions
Is there a double taxation agreement between Germany and the UAE?
No. According to the Federal Ministry of Finance’s overview of 7 January 2026, the agreement applied until 31 December 2021; no successor agreement is in force in November 2026. German tax law applies on its own.
Do I have to pay tax in Germany on rental income from Dubai?
People resident in Germany are generally taxed on their worldwide income, so rental income from a property in Dubai can be taxable in Germany. Please clarify with your tax adviser how this applies in your case.
What applies to buyers from Austria and Switzerland?
Both countries have a double taxation agreement with the UAE in force, and both agreements were revised recently: Austria has applied the credit method since 2023, and the Swiss amending protocol has been in force since 2025. The tax treatment depends on your personal situation and should be clarified with a tax adviser in your country of residence before you buy.
