Dubai capital gains fears dismissed
Fears that the Dubai government will impose a capital gains tax on property that is sold within 12 months of its purchase have been dismissed by analysts.
A report by Standard Chartered Bank in July proposed preventing real estate speculation by putting a 50 per cent tax on profits from houses sold before one year had passed, reports Emirates Business.
However, a survey of analysts and experts in the sector found that they believe that a move of this kind is highly unlikely, with two out of three developers stating that it would go against the principle of open markets in the United Arab Emirates.
Robert McKinnon, managing director of equity research for Al Mal Capital, commented: "In the end I don't think a capital gains tax will be implemented, since it is difficult to attract investment in the sector while increasing taxes."
Dubai recently passed a ruling that all off-plan property sales must be registered with the Land Department in an attempt to put an end to mass speculation which could push prices up to prohibitive levels, reports Property Wire.
Visit our off-plan property United Arab Emirates page.
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