Guide to Property Taxes and Fees: Mumbai and Major Cities in the UAE
Hidden costs often surprise new property investors. Here’s what to budget:
Mumbai:
- Stamp Duty: Typically 5-6% of market value. Discounts apply in case of women buyers or within certain municipal limits.
- Registration Charges: 1% of property value, subject to a maximum cap.
- Municipal Taxes: Annual tax on the property, based on usage, area, and locality.
- GST: Applicable if purchasing under-construction property.
UAE (Dubai/Abu Dhabi):
- Registration Fee: 4% (Dubai) or 2% (Abu Dhabi) of property price, payable to land departments.
- Service Charges: Annual fees levied by the developer/Owners’ Association for facility upkeep, security, and amenities. Rates vary by property type and size.
- No Recurring Taxes: Unlike India, there’s no annual property tax, but transfer fees and one-time levies apply.
Recommendation: Always request a detailed break-up of all costs before finalizing, and update yourself with the latest regulations to avoid surprises.
