New Tax Regulations Every Homeowner Should Know in 2025

As a homeowner or investor in the UAE, staying updated with the latest property-related laws is essential—especially in a fast-evolving market like Dubai. With several new regulations, tax adjustments, and hidden fees coming into effect in 2025, understanding these changes is crucial for anyone looking to buy or sell property in Dubai.

Here’s a breakdown of the most important updates and how they may affect you.

🏘️ 1. No Annual Property Tax, But Fees Are Rising

Dubai continues to be one of the few global markets without an annual property tax, making it an attractive destination for foreign investors and residents. However, indirect costs are increasing.

The housing fee remains at 5% of the annual rental value and is collected through DEWA bills.

Sewerage and waste management fees are gradually increasing, projected to nearly double by 2027.

Service charges for building maintenance and community amenities are expected to rise by up to 10%, impacting both homeowners and tenants.

These hidden fees should be considered while calculating the actual cost of property ownership.

📋 2. Transfer Fees and VAT on Transactions

Buying or selling property in Dubai involves several fees, and in 2025, there are some important points to note:

The property transfer fee remains at 4% of the purchase price, typically split between the buyer and seller.

5% VAT applies to newly constructed residential properties sold within 3 years of completion, while resale properties are VAT-exempt.

Brokerage and property management services remain subject to 5% VAT, which can add to transaction costs.

For those planning to buy property in Dubai, working with knowledgeable real estate agents in Dubai can help navigate these cost structures efficiently.

🏢 3. Corporate Tax and REIT Regulations

The UAE introduced a 9% corporate tax in 2023, and it continues to affect real estate businesses in 2025:

Companies in the real estate sector generating more than AED 375,000 in yearly profits fall under the 9% tax bracket.

Real Estate Investment Trusts (REITs) are now required to distribute 80% of their profits to shareholders to maintain their tax-exempt status.

For investors and developers, it’s essential to structure businesses and investments in compliance with these corporate tax laws.

🌍 4. Expanded Freehold Zones and Residency Incentives

One of the most exciting developments in 2025 is the expansion of freehold zones across Dubai, offering more areas where foreigners can own property outright.

The latest freehold zones now cover sections of Sheikh Zayed Road, Al Jaddaf, and the Dubai Creek vicinity.

Purchasing property in Dubai valued at AED 2 million or above makes investors eligible for a 10-year Golden Visa.

Properties valued at AED 750,000 or more may qualify for a 2-year investor residency visa, making the city more appealing for long-term relocation.

These changes align with Dubai property market trends aimed at attracting international talent and capital.

💡 5. Why This Matters for Homeowners and Investors

Whether you’re planning to buy or sell property in Dubai, these legal and financial changes can have a significant impact on your decisions:

Budget with precision – Account for all hidden costs including service charges, VAT, and potential fee hikes.

Prioritize resale properties – These are often VAT-exempt, saving buyers thousands of dirhams.

Invest with confidence – Escrow accounts, transparent contracts, and freehold expansion provide safer and more flexible investment options.

Work with professionals – The best real estate companies in UAE are already adapting to these legal shifts and can help you navigate them smoothly.

✅ Final Take

While Dubai remains a tax‑advantaged haven, new regulations mean homeowners must plan ahead. From rising hidden fees to digital escrow protections and visa incentives, 2025 brings both challenges and opportunities.

For more in-depth knowledge, you can explore reliable resources like Investopedia for general real estate and tax updates.

For further insights on how tax laws globally are evolving in 2025, visit Investopedia’s real estate section for expert-backed guidance and educational resources.