Dubai vs Cyprus: Property Tax Comparison in 2026

By Irem Demirci

Dubai vs Cyprus: Property Tax Comparison in 2026 (Simple, Investor-Focused)

People compare Dubai and Cyprus for one main reason: both can be lifestyle purchases, but the tax experience feels very different.

1) Taxes on rental income

Dubai

No personal income tax on individuals, which is why rental income is generally not taxed at the personal level.
If you hold property through a business structure, corporate tax rules may apply.

Cyprus

Rental income from Cyprus property is generally taxed under income tax rules, and it is treated differently from dividends and interest.

2) Taxes and costs when buying

Dubai

Common headline cost is the Dubai Land Department registration fee, widely referenced at 4% of the purchase price.
VAT on residential property transactions is generally structured so residential supplies are typically exempt, with specific rules for first supply by developers.

Cyprus

VAT can apply on new properties, and there is a reduced 5% VAT scheme for a primary residence under specific size and value conditions, otherwise standard VAT applies.

3) Taxes when selling

Dubai

Dubai is often described as having no capital gains tax for individuals on property sales.

Cyprus

Cyprus imposes capital gains tax at 20% on gains from disposal of immovable property situated in Cyprus (and certain related share disposals).

4) The “real life” takeaway

Dubai tends to be simpler on ongoing personal taxation, but you should still budget for purchase fees, service charges, and any structure-related rules.

Cyprus can be very attractive for EU-based living and planning, but taxes can be more “European style” with VAT rules on new property and CGT on sale.