Dubai fees versus UK stamp duty
Dubai Land Department registration is generally 4% of the purchase price. Trustee, registration, mortgage and agency costs depend on the transaction, so request a unit-level cost sheet rather than relying on a single all-in percentage. UK SDLT does not apply to the Dubai purchase itself.
- First-home SDLT relief in the UK does not apply to Dubai purchases.
- Non-UK resident SDLT surcharge adds a further 2% if you buy a UK home while non-resident.
Tax on rental income for UK residents
The UAE does not levy personal income tax on rental income. HMRC says UK residents normally report overseas rental income, with allowable expenses and the final tax position depending on their circumstances. UK rules for foreign income and residence have changed, so obtain current advice rather than relying on historic remittance-basis guidance.
- Report the property and any overseas income on SA106 each tax year.
- Mortgage interest relief is restricted to a 20% tax credit, not full deduction.
- Capital gains on sale are taxable in the UK as a chargeable gain, annual exemption applies.
The 10-year Golden Visa in pounds
An investment of AED 2 million, approximately £430,000 at current rates, qualifies you, your spouse and children for a 10-year renewable UAE Golden Visa. Many Binghatti apartments in Business Bay, Downtown and Al Jaddaf start near or above this level, and the visa requires no minimum stay to renew. Holding the visa does not, on its own, change your UK tax residency.
Remote purchase and the Power of Attorney
British buyers can complete a Dubai purchase largely remotely. A Notarised and Apostilled Power of Attorney, arranged through a UK notary and the FCDO Legalisation Office, lets a representative in Dubai sign the SPA, register the title and handle handover. We coordinate the POA drafting, the escrow transfer and the Oqood (off-plan) or Title Deed registration so only a short visit is needed for key collection.