Abu Dhabi fees versus UK stamp duty
Buying a Abu Dhabi property costs roughly 8% of the price in government and registration fees: a 4% transfer fee paid to the Abu Dhabi Real Estate Centre and a 4% administrative fee typically paid to the developer or broker. By comparison, UK stamp duty land tax on a second home or a company purchase runs from 5% to 17%, and an additional 3% surcharge applies to additional dwellings. The Abu Dhabi fee is a flat 4% regardless of price, with no banded escalators.
- First-home SDLT relief in the UK does not apply to Abu Dhabi purchases.
- Non-UK resident SDLT surcharge adds a further 2% if you buy a UK home while non-resident.
Tax on rental income for UK residents
The UAE levies no income tax on rental income. As a UK resident, you must declare the Abu Dhabi rental to HMRC on your Self Assessment, and it is taxed at your marginal UK rate after deducting allowable expenses (service charges, management fees, mortgage interest restricted to 20% credit, depreciation is not allowed). If you are non-UK domiciled and claim the remittance basis, foreign rental kept outside the UK may not be taxable until remitted, though the remittance basis has been restricted since 2017 and is closing further.
- Report the property and any overseas income on SA106 each tax year.
- Mortgage interest relief is restricted to a 20% tax credit, not full deduction.
- Capital gains on sale are taxable in the UK as a chargeable gain, annual exemption applies.
The 10-year Golden Visa in pounds
An investment of AED 2 million, approximately £430,000 at current rates, qualifies you, your spouse and children for a 10-year renewable UAE Golden Visa. Many Modon apartments in Hudayriyat Island, Downtown and Bashayer start near or above this level, and the visa requires no minimum stay to renew. Holding the visa does not, on its own, change your UK tax residency.
Remote purchase and the Power of Attorney
British buyers can complete a Abu Dhabi purchase largely remotely. A Notarised and Apostilled Power of Attorney, arranged through a UK notary and the FCDO Legalisation Office, lets a representative in Abu Dhabi sign the SPA, register the title and handle handover. We coordinate the POA drafting, the escrow transfer and the Oqood (off-plan) or Title Deed registration so only a short visit is needed for key collection.