●Tax

France–UAE tax treaty

In short

The France–UAE tax treaty (1989) aims to avoid double taxation; as the UAE levies no personal income tax and no real-estate capital-gains tax, the local tax on an investment there is nil.

In the UAE there is no personal income tax, no real-estate capital-gains tax and no annual property tax. Rental income and capital gains are therefore not taxed locally.

For a French tax resident, the situation depends on actual tax residency and the 1989 treaty — guidance from a tax adviser is essential. This content is informational and not personalised tax advice.

●In practice with Level8

For every client tax-resident in France, Level8 frames the declaration side with your counsel before signing: rental-income treatment under the treaty, IFI wealth-tax impact, possible structuring. The yield we present is always analysed net of your actual tax situation — not a theoretical gross.

Key takeaways

1989 treaty: it organises the elimination of double taxation
In the UAE: 0% tax on rental income and property capital gains
In France: the property stays in the IFI wealth-tax base above €1.3M net
The French declaration is framed BEFORE the purchase, not after

Worked example

A French tax resident collects AED 80,000 (~$22K) of annual Dubai rent with zero local withholding. In France, they declare this income; the treaty mechanism eliminates double taxation, but the declaration remains due (income + form 3916 for the UAE account), and the asset counts toward IFI above €1.3M.

Sources: Convention fiscale France–EAU (1989) · Updated 2026-06-23

●FAQ

Frequently asked questions

A question about "France–UAE tax treaty" applied to your project? Ask our team on WhatsApp — answered in under 5 minutes during the day.

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Is there a real-estate capital-gains tax in Dubai?

No. The UAE applies no real-estate capital-gains tax and no personal income tax.

Must a French resident still declare Dubai rent?

Yes: the treaty avoids double taxation but not the declaration. Income is declared in France (with the treaty's elimination mechanism), as is the UAE bank account (form 3916).

Does the treaty neutralise the IFI wealth tax?

No: Dubai real estate counts toward a French tax resident's IFI base above €1.3M of worldwide net property wealth. A point to plan before buying, with your adviser.

Do you have to declare a Dubai property in France?

Yes. Income must still be declared in France under the treaty's method, and the property counts toward the IFI wealth tax if your net property wealth exceeds €1.3M. The treaty prevents double taxation — it does not remove the duty to declare. We frame this with your counsel before the purchase.

●Related terms

Visa & residence

Golden Visa

The Golden Visa is a long-term UAE residence permit (5 or 10 years, renewable) granted notably to real-estate investors who own property worth at least AED 2,000,000.

Read the definition →Legal & registries

Freehold

Freehold is perpetual full ownership of a property and its land, open to foreigners in Dubai's designated areas — as opposed to leasehold (long-term lease).

Read the definition →

●Investing on clear ground

Clear terms, safer decisions.

Freehold, escrow, Oqood, Golden Visa: Level8 turns the UAE framework into concrete decisions — and guides you from first call to handover.

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