Real estate investment stands as one of the most time-honored and popular investment strategies worldwide. Business professionals from all corners of the globe favor this investment method, be it for rental or commercial purposes. However, governmental regulations often tend to impose more stringent rules on this type of investment compared to others. According to most international tax treaties, property-related taxes are typically collected in the country where the property is situated. This rule also applies to successions involving real estate properties.
Property tax, wealth tax, and real estate wealth tax are inevitable aspects in the world of real estate investment.
The United Arab Emirates (UAE) has emerged as a favored destination for real estate investors, thanks to its remarkable transformation under visionary leadership. This region, once a desert, has now become an oasis of opportunities.
The UAE real estate market continues to grow rapidly. However, the complexity of taxes on real estate income has increased, particularly with the introduction of the new corporate tax in 2023. Whether you reside in the UAE or abroad, understanding the impact of this tax is crucial for optimizing your investment strategies.
Here's an overview of the tax implications based on the location of your real estate and your tax residence:
As you can see, taxation can depend on the location of a property, the person who owns it, and its use. When a building is located in a state that hasn't signed a double taxation treaty, it is essential to thoroughly analyze the tax consequences. In contrast, it is necessary to examine the applicable tax treaties and their impacts on the parties involved.
The PIC team, comprised of strategy experts, real estate specialists, and tax lawyers, is here to guide you in securing your investments and selecting the most advantageous tax path for you.
