Updating post from Reddit.
Over the past few days, I've been literally flooded by advertisement on Instagram and YouTube by Real Estate agencies in UAE, trying to convince me how much better it is to invest in there vs in UK.
(fun thing is I'm not an LL in UK - I've been researching properties for living in them)
It looks a bit too shiny - guaranteed ROI*, no taxes, all simple and managed for UK. Does anyone have any experience, and is there any truth in this advertisement? I won't link them here but it's definitely not a single agency.
* They have this scheme where you buy off plan, pay immediately and for the time between payment and delivery they guarantee a 7/8% return as if it was a savings account.
Anything advertised in these channel has to be treated with huge suspicion. If it sounds to good to be true then ignore
Oh absolutely - I googled for some "real" experience but there isn't much, hence my ask here for someone with experience.
Outside of the UK context, there are some warnings re investing in UAE at the moment because - apparently - they approved a ton of developments delivering 2025-30 which will result in oversupply and thus both loss of value and drop in rental income.
It's likely they are going to sell you a course on how make money investing in Dubai property. If it looks and smells like a scam, it's probably a scam.
Noone can predict the future. Those claiming too need to be avoided.
Fair, but it's important to hear both sides - truth is always likely to be somewhere in the middle.
I think your seem convinced there is gold there so good luck. It’s a crash waiting to happen.
From a couple of months ago:
> Dubai's real estate market prices are likely to face a double-double-digit fall in the second half of the year and in 2026, ratings agency Fitch said in a report, marking a sharp turn after years of a post-pandemic boom. > > A spike in deliveries in 2025 and 2026 to a planned 210,000 units, doubling from the previous three years, is likely to cause a record increase in supply and push prices down by no more than 15%, the agency said.
Ha! Great catch - similar to what I read but couldn't find reliable sources, which you did. This post might turn useful in a couple of years then...
Can't be any worse than UK.
I bought a place for around 500k cash in 2022, its now worth about 650-700k. I rent it out at about 2.5k/mo.
Honestly its been amazing. Literally the most hands off investment I've ever had. There's no sky high amounts of red tape & bullshit like there is in the UK.
However, I believe its also full of scams and bad investments (You need to be very familiar with Dubai & areas) and people do say that the market is likely to peak sometime soon if it hasn't already.
I pay zero tax on it as I'm not UK resident but if you're doing it in your personal name you'll still need to pay tax in the UK when you file.
So just keeping up with inflation then.
Yep, like most property since 2015. People don't look at real returns though only the headline figures.
I mean if you ignore the 200k of value increase on the property then sure? lol
Yeah I could have got better elsewhere.
Where? Everything I can read says Dubai had one of the fastest growing property markets in the world. Can't find anywhere that outpaces it those years.
How are you avoiding tax, if you aren't living here you need to use an agent who taxes it at source and gives you the rest?
No tax on rental income in the UAE
My understanding is that you should still be paying tax at source...
UK–UAE Tax Agreement: What It Covers
The UK and UAE have a double taxation agreement, which typically prevents the same income from being taxed in both jurisdictions. However, this does not mean that UAE residents are exempt from UK taxes on rental income.
UK-sourced income is generally subject to UK tax, regardless of where the landlord resides. Any relief or offset for UAE tax purposes should be discussed with a local advisor familiar with cross-border taxation.
This refers to the other way round - UAE investors taxed on UK property. The thread is about UK investors on UAE property.
Well a UK investor buying UAE property to let out is taxable in the UK. I think there are a few people saying it was tax free but turns out they were living in UAE with UAE property.
I think the meaning of the "tax free" claims is that you pay no tax there - it's a way to attract investments.
But as a UK landlord you would pay tax. The only people the tax free is benefiting is someone living in UAE as a UAE property landlord.
UK tax residents must declare and pay UK tax on Dubai rental income in full.
There could be further taxes in UAE so you would pay UK and UAE tax. So it’s quite nice they discount their half of the deal.
Why would I pay tax in the UK on a Dubai property if I don't live in the UK?
I posted a link further down which states why. I think it's a fairly new tax policy from a few years ago that tax is at source for landlords living abroad. Even though UAE has 0% tax deal with UK the money is considered UK earned and does mean tax at source is to make sure it is covered.
That's for UK properties with landlords living abroad.
This for for a non-UK property with a landlord living abroad lol. My property in Dubai has nothing to do with the UK taxman as even I am not UK tax resident.
Oh I thought you were trying to say it was a UK property but you live in Dubai. Yeah then my points won't matter. The op sounds like they are UK based though so slightly different to your situation.
No tax and a better ROI.. better capital appreciation too.
While there are some real deals and investment to be had in Dubai, you have to remember a lot of the property people whose moved over to Dubai are the snake oil salesman of our time.
With a flick of a pen … they will take your property and there is fuck all you can do about it.