Is there property tax in the UAE? No. The UAE has no annual property tax, no capital-gains tax and no income tax on rental earnings for individuals — one of the main reasons RAK is attractive to global investors.
One-off purchase costs
- Government transfer / registration fee — a percentage of the purchase price paid to the RAK land department on transfer.
- Agency fee — the standard brokerage commission, typically around 2% of the price.
- Reservation / admin fees — a modest developer or NOC fee on resale.
- Mortgage costs (if financing) — bank arrangement fee and valuation.
Ongoing costs
- Service charges — an annual per-sq-ft fee for maintenance of shared areas, security and amenities.
- Utilities — electricity and water (FEWA) on usage.
- Property management — optional, if you let the unit out (commonly a share of rent).
Why the UAE tax position matters
With no property tax, no capital-gains tax and no personal income tax on rent, your net yield in RAK is close to your gross yield — materially higher take-home return than in most European or Asian markets.
Worked example
On a ready apartment, budget roughly the transfer fee plus ~2% agency plus minor admin as your one-off acquisition cost, then the annual service charge as your main recurring cost. Off-plan spreads the price across a payment plan, so your upfront outlay is lower. For projected returns, see the rental yield & ROI guide.