Cross-Border Taxation
Cross-border taxation addresses tax obligations when investors are resident in one jurisdiction and invest in property located in another, requiring analysis of both countries' tax laws.
| Tax Consideration | Issue |
| Source country taxation | Where property located (Dubai) |
| Residence country taxation | Where investor resides |
| Double taxation risk | Same income taxed twice |
| Withholding taxes | Deducted on rental payments or interest |
| Capital gains treatment | Exit taxation in one or both countries |
| Tax treaties | DTA reduces or eliminates double taxation |
| UAE Tax Profile | Treatment |
| No personal income tax | Rental income not taxed at source |
| No capital gains tax | Sale proceeds not taxed |
| Corporate tax (9%) | On UAE company profits over AED 375,000 |
| Withholding tax | Generally nil on payments abroad |
| Investor advantage | Favorable source country taxation |
| Home country tax | Investor must report per residence rules |
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