Dubai vs Europe
Investing in Dubai or in Europe: the figures compared.
What you keep after charges and tax, unpaid rent, rent increases: compare Dubai with Paris, Zurich, Geneva, London or Barcelona.
Dubai vs Europe
Property investment: what really ends up in your bank account.
A gross yield on a brochure doesn't pay your bills. Between tax, rent controls and charges, net returns melt away fast. We compare, with Swiss rigour, what truly matters: what you keep after charges and tax, and how safe your capital is.
a year, in your pocket
On $100,000 invested
About 3.5 times more in your pocket in Dubai
- Dubai
- $4,100–$7,900
- Paris
- $800–$2,600
After tax, per year: Dubai $4,100–$7,900, Paris $800–$2,600.
The four things that matter
| Dubai | Paris | |
|---|---|---|
| Tax on your rent | 0% in Dubai And nothing to pay in France, thanks to the France–UAE tax treaty. | 20–62.2% Income tax at your bracket, plus 17.2% social charges. |
| Unpaid rent | 2 to 6 months A 30-day formal notice, then the Rental Disputes Centre. | 8 to 18 months Court proceedings, then a five-month winter truce. |
| Rent increases | Official RERA index At renewal, an increase of 0 to 20% depending on the gap with the index, announced 90 days ahead. | Capped rents Paris rent control, with penalties for any excess. |
| Financing | Staged payments Off-plan, the price is paid to the developer in stages during construction, often interest-free. | Bank loan A personal deposit is required and lending conditions are strict. |
The dirham (AED) has been pegged to the US dollar since 1997: USD 1 = AED 3.6725.
Off-plan purchases: your payments go into escrow accounts supervised by the Dubai Land Department (Law No. 8 of 2007).
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Indicative ranges for 2025–2026, for an individual letting an apartment year-round and living in the country of the selected city. Taxation depends on your personal situation: have it confirmed by a tax adviser.
Sources: Dubai Land Department, RERA, each country's tax authorities and tax treaties, Global Property Guide (2025–2026).
Understanding the figures
What lies behind the numbers.
Why are yields higher in Dubai?
Rents remain high compared with purchase prices, and no tax is levied on rental income: a larger share of the rent stays with you.
What does 0% tax really mean?
Dubai levies no tax on rental income, no capital gains tax and no annual property tax. Buying involves a one-off Dubai Land Department fee of 4%. Your country of residence may tax worldwide income: check your situation with a tax adviser.
How are buyers protected?
Off-plan payments are made into escrow accounts regulated by RERA and released to the developer as construction progresses. Every sale is registered with the Dubai Land Department.
Why does the dollar peg matter?
The dirham has been pegged to the US dollar since 1997, at AED 3.6725 per dollar: your investment is not exposed to the swings of a floating local currency.
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