Understanding taxation and the legal framework is the first step toward a confident investment, especially for a buyer placing capital outside their country of residence. This guide explains the regimes that apply in Dubai, Abu Dhabi, Bali, the Maldives and Paris, along with the treaties and reporting obligations you should know. The goal: a clear, jargon-free view so you can decide with full awareness.
Dubai and the Emirates: an attractive framework for individuals
In the United Arab Emirates there is no personal income tax and no recurring annual property tax of the residence-tax type. For an individual, rental income earned in Dubai or Abu Dhabi and capital gains on resale are generally not taxed locally at the individual level. This is one of the main drivers of these markets' appeal.
It is important, however, to distinguish the taxation of individuals from that of companies: the corporate tax recently introduced in the Emirates applies to certain business activities and structures, and may apply if you hold property through a commercial entity. The ownership structure (personal name versus company) should therefore be arbitrated with an adviser.
Lucretia does not replace your lawyer or accountant, but connects you with specialist partners to structure your acquisition according to your profile and tax residence.
Acquisition costs and transaction fees in Dubai
Buying a property in Dubai involves registration fees with the Dubai Land Department (DLD), historically around 4% of the price, plus administrative title-registration charges. To these are usually added agency fees and, where applicable, a NOC (No Objection Certificate) fee on the developer side.
These transaction costs are distinct from recurring taxation: once the property is owned, you mainly pay annual service charges. Anticipating these costs from the outset avoids any unpleasant surprise when calculating your overall budget.
Tax residence and reporting obligations in your home country
The absence of local taxation in Dubai does not mean an absence of obligations at home. A French, Belgian or Swiss tax resident generally remains required to declare foreign-held accounts, income and assets in accordance with the law of their country of residence. The rules vary by situation and must be respected.
Bilateral tax treaties (for example between France and the Emirates) aim to avoid double taxation and determine which State taxes which income. Reading them is technical and should be done with a tax adviser who knows your personal circumstances.
Obtaining a residence visa in the Emirates (notably via certain property-investment thresholds granting a long-stay visa) may, in some cases, change your tax residence. This is a structural decision to study in advance, never to improvise.
The other Lucretia markets: Bali, the Maldives and Paris
Each market has its own rules. In Indonesia (Bali), land ownership by foreigners is regulated and often runs through specific holding structures (usage rights, long-term leases, corporate setups): the legal framework deserves particular attention and local advice.
In the Maldives, foreign investment usually fits within dedicated frameworks (tourism projects, leases). In Paris, you are in a classic French tax environment: transfer duties (notary fees), taxation of rental income, and potentially the real-estate wealth tax depending on your assets.
This diversity is a strength for diversification, but it requires analysing each acquisition within its own legal context.
The Lucretia method: securing without promising the impossible
We never communicate a guaranteed net yield or a universal quantified tax saving: your situation is unique. Our role is to present the applicable framework, flag the points requiring vigilance, and connect you with qualified legal and tax advisers.
A well-structured investment from the outset, consistent with your tax residence and wealth objectives, is the best protection. This methodical, transparent approach guides every engagement we undertake.
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