REALWorld Law

Taxes

Ongoing costs of ownership

What costs/charges (other than tax) are payable by the owner of real estate and who are these payable to?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

This could comprise:

  • Registration dues for various types of transaction, including:
    • Mortgage
    • Mortgage redemption
  • Normal utility charges (and connection fees)
  • Security deposits on leases

In addition, leases are required to be registered in a new register maintained by the ADM pursuant to a new system known as Tawtheeq. The following fees are payable by the landlord under this system:

  • AED 1,000 per building registration (plus AED 5 for registration of each leasable unit)
  • AED 100 per registration of each new lease
  • AED 100 for renewal of a lease
  • AED 50 for termination of a lease
  • AED 50 for any further administration

Leases of four years and over are to be registered under the alternate register maintained by the ADM known as Tamleeq. The rules and process to registration are yet to be formally established. There are two different registration fees payable depending on the term of the lease:

  • For leases over four years but less than 25 years: registration fees are 1% of the first year’s rent
  • For leases over 25 years: registration fees are 4% of the value of the consideration

Responsibility for the registration fees can be provided for in the lease.