Spotlight on Double Taxation Agreements: Do Dubai Residents Pay Tax Twice on UK Property?

As a UK expat living in Dubai, owning property back home can be a smart investment — but it also raises a lot of questions around tax. One of the most common concerns we hear at The Tax Faculty is:

"If I live in Dubai, will I be taxed twice on my UK property income?"

The short answer is no — not if you plan correctly. Here's how the UK/UAE Double Taxation Agreement works, and how we help ensure our clients remain tax compliant while also being tax efficient.

What Is a Double Taxation Agreement (DTA)?

A Double Taxation Agreement (DTA) is a treaty between two countries that ensures taxpayers aren’t taxed twice on the same income. The UK has such an agreement with the United Arab Emirates, which includes Dubai.

This means that if you’re a Dubai tax resident with UK property income, you won’t be taxed twice. Instead, you'll pay tax where it’s due — in this case, the UK — and avoid any additional income tax liability in the UAE (which doesn’t charge personal income tax anyway).

Do Dubai Residents Pay UK Tax on Property Income?

Yes. Regardless of where you live, UK property income is taxable in the UK. This includes:

• Rental income from buy-to-let properties

• Capital Gains Tax (CGT) on the sale of UK property (for both residents and non-residents)

So, if you’re renting out a flat in London while living in Dubai, you’re legally required to report that income to HMRC and pay the appropriate tax.

What About Tax in Dubai?

Here’s where it gets simpler.

The UAE, including Dubai, has no personal income tax. That means any income you earn — including money from UK property — is not taxed again when it comes into Dubai.

So while you do need to file UK taxes, there’s no “double tax” hit thanks to both the UK/UAE DTA and Dubai’s zero-income tax policy.

Are you Eligible for Tax Reliefs?

Absolutely — and this is where working with a trusted tax professional such as The Tax Faculty can pay dividends.

At The Tax Faculty, we help Dubai-based clients:

• Claim allowable expenses to reduce rental profits

• Understand and apply Personal Allowance (if eligible)

• Use foreign tax credit relief (where applicable)

• Navigate the Non-Resident Landlord Scheme (NRLS)

• Stay fully compliant with HMRC regulations

• Avoid common traps around CGT and inheritance tax exposure

What About the Non-Resident Landlord Scheme (NRLS)?

If you’re living in Dubai and renting out UK property, you're likely classed as a non-resident landlord. Under the NRLS, either:

• Your letting agent or tenant deducts basic rate tax (20%) from your rental income and pays it directly to HMRC, or...

• You apply to receive rental income gross (without deductions) and file your taxes via Self Assessment.

A tax professional can guide you through whichever route fits best.

The Bottom Line: No, You Don't Pay Tax Twice

Thanks to the UK–UAE Double Taxation Agreement and the absence of income tax in Dubai, you're not subject to double taxation on your UK property income.

However, that doesn’t mean you can ignore your UK tax responsibilities. Many expats assume incorrectly that living abroad absolves them from filing or paying UK tax—which can lead to penalties, interest, and even investigations.

If you’re living in Dubai and earning from UK property, you won’t be taxed twice — but you do need to be smart about how you report and manage that income.

At The Tax Faculty, we help expats like you stay on the right side of HMRC while claiming every legitimate tax break available.