Selling property in Dubai: tax and records for owners
When a Dubai apartment is sold, part of the sale price may go straight to the lender to settle the mortgage. The seller receives the balance. To assess the sale and prepare for a tax review, reconcile the contract price, mortgage payoff, original purchase costs and payment dates.
Identify the asset being sold. This guide covers a direct sale of completed property. An assignment of off-plan rights or a sale of shares in a property-owning company calls for a separate review. The evidence and tax treatment can differ.
Where to check tax on a Dubai property sale
Article 13(1) of the Russia–UAE treaty allows the country where real estate is located to tax gains from its sale. For a Dubai apartment, that country is the UAE. Check what the treaty permits, then apply domestic rules to determine whether the seller owes tax. Russia–UAE treaty, Articles 13 and 23.
A sale by an individual may qualify for the UAE Corporate Tax exclusion for Real Estate Investment. Check whether the investment activity is conducted under a licence or requires one. If the seller is a company, assess Corporate Tax at company level. For a foreign legal entity, income from the sale of UAE real estate can create a Corporate Tax registration obligation. FTA guide for natural persons and UAE Cabinet Decision No. 35 of 2025.
If the seller is also taxable in Russia, review the conditions for a foreign tax credit under Article 23. A claim requires evidence of foreign tax on the same income. Keep DLD receipts and closing costs separate from the tax evidence. See the foreign tax credit records guide.
What individuals who are Russian tax residents should check
- Source of income. A sale of real estate outside Russia produces foreign-source income. Check the Russian filing obligation and any applicable exemption. Russian Tax Code, Article 208. Russian Federal Tax Service guidance on 3-NDFL.
- Holding period. Check whether the holding-period exemption applies and which date starts the clock. Article 217.1 generally provides for a five-year minimum, with a three-year minimum in specified circumstances. Gather the purchase agreement, registration records and ownership details so your adviser can verify the applicable rule. Russian Tax Code, Article 217.1.
- Acquisition costs. If the income is taxable, review which documented costs actually incurred on acquisition can be taken into account under Article 220. Keep the purchase agreement, payment schedule and evidence of each payment. Flag fees, charges and interest separately for review. Russian Tax Code, Article 220.
- Currency and dates. For Russian personal income tax, foreign-currency income and allowable expenses generally use the Bank of Russia’s official exchange rate on the relevant receipt or expense date. Record the date of each payment separately. Russian Tax Code, Article 210.
Worked example. Reconciling sale price to cash received
An apartment sells for AED 1,400,000. Under the settlement terms, AED 300,000 goes to pay off the mortgage and AED 30,000 covers agreed seller costs. Assume there are no other payments or deductions.
| Item | Amount, AED | Supporting record |
|---|---|---|
| Contract sale price | 1,400,000 | Sale agreement |
| Mortgage payoff | 300,000 | Lender’s settlement statement and payoff evidence |
| Seller’s fees and charges | 30,000 | Invoices and payment records |
| Net cash to seller | 1,070,000 | Bank statement and closing reconciliation |
The bank statement should show a receipt of AED 1,070,000. Keep the full contract price and the original acquisition records for the tax review. The mortgage payoff explains how much went to the lender at closing. Applicable tax rules and the evidence determine which costs can be taken into account.
Suppose the purchase price was AED 1,100,000. The two contract prices differ by AED 300,000. If the single purchase payment is converted at an illustrative rate of RUB 20 per AED and the single sale settlement at RUB 25 per AED, the amounts are RUB 22 million and RUB 35 million. The RUB 13 million difference illustrates the effect of exchange rates. For a filing, your adviser will check the actual dates and rates, any exemption and the eligible costs.
What to keep in your transaction file
- Acquisition and ownership. Purchase agreement, title deed, ownership shares, payment schedule and payment evidence.
- Sale and registration. Signed sale agreement, transfer registration evidence, the developer’s electronic no-objection certificate where DLD requires it, and fee receipts. Dubai Land Department property sale registration.
- Cash movements. Mortgage payoff statement, evidence of payment to the lender, intermediary invoices, bank statements and a reconciliation of all parts of the price.
- Tax review. Residence evidence for the relevant period, exchange rates and dates, evidence of any tax paid and outstanding questions about deductions.
Property sale reconciliation tracker
The CSV includes an illustrative sale and a blank row. For instalments, record each payment separately with its date, currency and supporting document.
Download the sale tracker (CSV)Frequently asked questions
Is the title deed enough for the tax calculation?
It helps establish the property and ownership. Use the agreements and payment evidence to substantiate the price, dates and settlement.
What if the property was rented before it was sold?
Keep the rent schedule and receipts for the relevant periods and maintain a separate sale file. See the Dubai rental records guide.
How NG Consulting can help
We reconcile the purchase and sale contracts to payments, map who received each amount and prepare financial records for your tax adviser. For an initial discussion, bring the contracts and a list of payments for the property.
Discuss your sale figures →Review date
Sources were reviewed on 13 November 2026. Tax treatment depends on the seller, asset sold, residence, period and supporting records.