Buying property in Dubai from Italy: what you get, what it pays, IVIE and IRPEF
A typical 1-bedroom flat in Dubai costs €256,812 (AED 1,050,000). It earns 6.3% a year in rent before costs and 3.8% after them. An Italian resident pays IVIE of 1.06% a year on the cost and IRPEF on 85% of the rent, with no cedolare secca.
This guide follows the four decisions an Italian buyer makes, in order: Dubai or Italy, which area, which building, and who you buy with. Each step ends with the questions that settle it. Dubai prices are Dubai Land Department sale records and Ejari rent contracts. Italian figures are OMI quotations of the Agenzia delle Entrate. None of it is from adverts.
The four steps: 1. Dubai or Italy · 2. Which area · 3. Which building · 4. Who you buy with.
This page is information. It is not tax, legal or financial advice. Check it with a commercialista before you buy.
Step 1. A 1-bed in Dubai against a flat in Milan, Rome or Florence
A Dubai 1-bed costs less than a Milan flat and earns more after costs: 3.8% net against 2.6% in Milan, before tax. For an Italian resident, Italian tax then reverses it: see the next table.
| In Dubai | In Italy (OMI estimates, 55 m²) | ||||||
|---|---|---|---|---|---|---|---|
| All Dubai | JVC | Business Bay | Dubai Marina | Milan | Rome | Florence | |
| Typical price, 1-bed | €256,812 | €242,137 | €354,645 | €420,682 | €414,333 | €260,317 | €189,426 |
| Buying costs (tax and fees) | €16,835 | €15,939 | €22,802 | €26,831 | €8,261 | €9,757 | €5,956 |
| Cash in on the day | €273,646 | €258,076 | €377,447 | €447,513 | €422,594 | €270,074 | €195,382 |
| Rent a year | €16,142 | €17,610 | €22,012 | €23,235 | €15,228 | €11,124 | €7,860 |
| Service charge a year | €2,931 | €2,964 | €2,979 | €3,027 | €1,378 | €1,631 | €920 |
| Gross yield (rent ÷ price) | 6.3% | 7.3% | 6.2% | 5.5% | 3.7% | 4.3% | 4.1% |
| Net yield before tax | 3.8% | 4.5% | 4.1% | 3.6% | 2.6% | 2.7% | 2.8% |
| Price change, last 10 years | +36% | +57% | +29% | +52% | +43% | +6% | +10% |
How to read it. Gross yield is the rent divided by the price, the number most agents quote. Net yield is what is left after running costs, divided by all the cash you put in on the day. It is the honest number.
Dubai costs: service charge AED 15 per sq ft a year (Land Department index samples run AED 12 to 25), property management 6% of rent, one month empty a year, repairs 3% of rent. Buying costs are the Land Department fee (4% plus AED 580), the trustee office and an agent at 2% plus VAT. Italian costs: letting agent 8.0% of rent, one month empty a year, repairs 3% of rent, IMU on a second home (owner pays). Condominium fees are not in the Italian figures (no source), so Italian net yields are a little high. Italian buying costs are the registration tax for a second home (9% of the cadastral value) and the notary.
The Italian figures are estimates: OMI quotations per m² for a civil flat in central and semi-central zones, times a typical 1-bed size. Read them as a guide to the gap, not as a valuation.
Sources: Dubai Land Department sale records and Ejari new leases, completed 1-bed flats, last 12 months, BUY DUBAI warehouse (28 October 2026); Agenzia delle Entrate, OMI quotations (sale and rent); IMU rates 2026 by municipality. Exchange: ECB reference rates, 28 October 2026, at the fixed rate of AED 3.6725 per US dollar.
How long to get your money back: Dubai against Italy, after costs and tax
In JVC, the rent pays back your cash in 22 years after costs and before tax, and in 67 years for an Italian resident in the 35% band, after IVIE and IRPEF.
| Years to get your cash back from rent | In Dubai | In Italy (OMI estimates, 55 m²) | |||||
|---|---|---|---|---|---|---|---|
| All Dubai | JVC | Business Bay | Dubai Marina | Milan | Rome | Florence | |
| What agents quote (price ÷ rent) | 16 years | 14 years | 16 years | 18 years | 27 years | 23 years | 24 years |
| After running costs, before tax | 26 years | 22 years | 25 years | 27 years | 38 years | 36 years | 36 years |
| Italian resident, 35% IRPEF band with surcharges (example): Dubai rent at IRPEF on 85% + IVIE 1.06%; Italian rent at 21% cedolare secca | 92 years | 67 years | 75 years | 91 years | 54 years | 53 years | 51 years |
| Italian resident, 46% IRPEF band with surcharges (example) | over 100 years | over 100 years | over 100 years | over 100 years | 54 years | 53 years | 51 years |
| You live in the UAE (AIRE, really non-resident): no Italian tax on Dubai; Italian rent at 21% cedolare secca | 26 years | 22 years | 25 years | 27 years | 54 years | 53 years | 51 years |
The sum: cash in on the day, divided by the rent left each year after running costs and tax. It leaves out any change in the price. The IRPEF rates shown include an example 2% to 3% for the regional and municipal surcharges.
The tax point for an Italian buyer. An Italian flat let on an ordinary contract can use the 21% cedolare secca on the rent. A Dubai flat cannot: its rent is taxed at your IRPEF rate on 85% of the gross rent, and service charges are not deducted. On top, IVIE takes 1.06% of the purchase cost every year. For an Italian resident, Dubai rent costs more tax than Italian rent.
What does €100,000 buy in Dubai? And €250,000 or €500,000?
€100,000 buys a studio in International City. €250,000 buys a 1-bed in JVC. €500,000 buys a 1-bed in Business Bay or Dubai Marina, or a 2-bed in JVC.
€100,000 = AED 408,860 all in
Price limit after buying costs: AED 382,828. Completed flats sold at or under that price in the last 12 months:
| Size | Sales | Typical size | Where most were |
|---|---|---|---|
| Studio | 780 | 471 sq ft | International City, Dubai Production City |
| 1-bed | 157 | 594 sq ft | International City, Liwan |
€250,000 = AED 1,022,150 all in
Price limit after buying costs: AED 958,878. Completed flats sold at or under that price in the last 12 months:
| Size | Sales | Typical size | Where most were |
|---|---|---|---|
| Studio | 6,254 | 434 sq ft | JVC, International City, Discovery Gardens |
| 1-bed | 5,172 | 761 sq ft | JVC, International City, Discovery Gardens |
| 2-bed | 619 | 1,094 sq ft | Dubailand Residence Complex, Dubai South, Dubai Sports City |
In Italy, €250,000 buys about a 55 m² flat in a central or semi-central zone of Florence (€189,426) or Rome (€260,317), not Milan (€414,333) (OMI quotations, first half 2026).
€500,000 = AED 2,044,300 all in
Price limit after buying costs: AED 1,922,262. Completed flats sold at or under that price in the last 12 months:
| Size | Sales | Typical size | Where most were |
|---|---|---|---|
| Studio | 6,893 | 440 sq ft | JVC, Business Bay, International City |
| 1-bed | 10,616 | 784 sq ft | JVC, Business Bay, International City |
| 2-bed | 3,641 | 1,202 sq ft | JVC, Dubai South, Business Bay |
| 3-bed | 306 | 1,575 sq ft | International City, Town Square, JVC |
In Milan, €500,000 buys about a 55 m² flat in a central or semi-central zone (€414,333, OMI).
The budget is all in: price, Land Department fee, trustee office and agent. Sales are completed flats registered with the Land Department in the last 12 months, at prices at or under the limit. Off-plan flats cost more per sq ft and are paid in instalments.
Search sold prices for any budget on the tower list and the data page.
Italian tax on Dubai property: IVIE, IRPEF, the gain, quadro RW and inheritance
For an Italian resident, a Dubai flat pays IVIE every year, its rent is taxed at IRPEF, and it must be in the quadro RW.
| Tax | You live in Italy | You live in the UAE (AIRE and truly non-resident) |
|---|---|---|
| IVIE | 1.06% a year of the cost in the purchase deed (or market value if there is none). Nothing due if the tax is €200 or less. A main home abroad is exempt, but a let flat is not. | Not due. |
| Rent | Redditi diversi (art. 70 TUIR): 85% of the gross rent at your IRPEF rate (23% / 33% / 43% in 2026) plus regional and municipal surcharges. No cedolare secca. No foreign tax credit: the UAE charges no tax. | No Italian tax. |
| Gain when you sell | Taxed only if you sell within 5 years, at your IRPEF rate. The 26% substitute tax needs an Italian notary, so it does not apply to a sale in Dubai. | No Italian tax. |
| Quadro RW | Declare the flat every year, whatever its value. Penalty 3% to 15% of the value if missing; the tax office may claim 6% to 30%, because the UAE is still on the 1999 black list. | Not required. |
| Inheritance tax | A resident's estate is taxed on assets worldwide, including the Dubai flat: 4% above €1 million per child or spouse, 6% for siblings above €100,000, 8% for others. | Depends on residence. |
Moving to Dubai. AIRE registration is required within 90 days, but since 2024 it is no longer proof that you have left: the test is 183 days and where your life is. Because the UAE is on the 1999 list, an Italian who moves there is presumed still resident in Italy until they prove otherwise. The treaty's tie-breaker can decide it. Not registering costs €200 to €1,000 a year.
Sources: L. 213/2023 art. 1 c. 91 (IVIE 1.06%) and c. 242 (AIRE); L. 199/2025 (Legge di Bilancio 2026); TUIR art. 2, 67, 70; Circolare 26/E/2011 (no cedolare secca abroad); D.M. 4 May 1999; D.Lgs. 139/2024 (inheritance tax from 1 January 2025); D.Lgs. 209/2023 and Circolare 20/E of 4 November 2024 (residence); Italy–UAE tax treaty (1995); Cassazione 35284/2023. Read 28 October 2026. The 2027 budget bill is in Parliament: check for changes.
The euro against the dirham: the risk you cannot see in the price
€1 buys AED 4.09 today. In 2026 it ranged from AED 4.08 to AED 4.42.
The dirham has been fixed at AED 3.6725 to the US dollar since 1997. So a Dubai flat is, for you, a dollar asset: when the dollar falls against the euro, your flat and your rent are worth fewer euros, with no change in the dirham price.
Is Dubai property a bubble? Read this before you decide
The number of sales fell by about a third from March 2026. Prices have held so far. About 206,000 new homes are due in 2027 and 2028.
Prices of completed 1-beds fell 35% from 2014 to 2020, over six years. A buyer who had to sell in that time took the loss. A buyer who held and let the flat was paid rent through it. Read is Dubai property going to crash for the numbers to watch each month, and is Dubai a good investment for Dubai against 19 other markets.
Your decision, step 1: Dubai or Italy?
Dubai is the better choice for you if all of these are true:
- — the net yield after IVIE and IRPEF still beats an Italian flat with cedolare secca;
- — or you will live in the UAE and can show you are no longer resident in Italy;
- — you can hold for five years or more (a sale within 5 years is taxed), through a fall of 30% or more;
- — you are happy to own a dollar asset;
- — you will file the quadro RW every year.
Next: choose the area.
Step 2. Which area of Dubai? Every area with enough sales, in euros
Cheap areas pay the most rent but have grown least. Central areas cost more and pay less rent, but held their value better.
| Area | 1-bed price | Sq ft | Rent a month | Gross yield | Net yield | 10-year price change | Sales in 12 months |
|---|---|---|---|---|---|---|---|
| International City | €117,400 | 729 | €876 | 9.0% | 4.8% | −4% | 268 |
| Dubai Production City (IMPZ) | €147,972 | 654 | €1,284 | 10.4% | 6.6% | +1% | 273 |
| Dubailand Residence Complex | €152,919 | 843 | €1,141 | 9.0% | 5.1% | +8% | 220 |
| DAMAC Lagoons and Remraam | €164,482 | 689 | €1,182 | 8.6% | 5.3% | +6% | 106 |
| International City Phase 3 | €167,539 | 772 | €1,148 | 8.2% | 4.8% | +22% | 93 |
| Dubai Sports City | €171,208 | 810 | €1,223 | 8.6% | 5.1% | −13% | 379 |
| Dubai South | €177,873 | 684 | €1,162 | 7.8% | 4.8% | — | 160 |
| Al Furjan and Discovery Gardens | €197,011 | 862 | €1,385 | 8.4% | 5.1% | −18% | 546 |
| Town Square | €205,449 | 631 | €1,284 | 7.5% | 4.8% | — | 162 |
| Majan | €207,828 | 839 | €1,325 | 7.6% | 4.6% | −1% | 448 |
| Motor City | €229,908 | 990 | €1,488 | 7.8% | 4.6% | +12% | 344 |
| Arjan | €237,245 | 766 | €1,427 | 7.2% | 4.5% | +68% | 381 |
| DAMAC Hills | €238,468 | 730 | €1,427 | 7.2% | 4.5% | — | 191 |
| Jumeirah Village Circle (JVC) | €242,137 | 808 | €1,467 | 7.3% | 4.5% | +57% | 2,127 |
| Jumeirah Lakes Towers (JLT) | €281,270 | 834 | €1,684 | 7.2% | 4.6% | +15% | 397 |
| Al Jaddaf | €281,270 | 720 | €1,480 | 6.3% | 4.0% | −1% | 139 |
| Meydan and Sobha Hartland | €322,115 | 692 | €1,651 | 6.2% | 4.1% | — | 545 |
| Business Bay | €354,645 | 812 | €1,834 | 6.2% | 4.1% | +29% | 907 |
| The Greens | €366,874 | 791 | €1,875 | 6.1% | 4.0% | +33% | 203 |
| Dubai Hills Estate | €366,874 | 668 | €1,834 | 6.0% | 4.1% | — | 346 |
| Dubai Creek Harbour | €419,459 | 722 | €2,038 | 5.8% | 4.0% | — | 355 |
| Dubai Marina and Dubai Harbour | €420,682 | 825 | €1,936 | 5.5% | 3.6% | +52% | 883 |
| Downtown Dubai | €507,509 | 887 | €2,324 | 5.5% | 3.7% | +38% | 597 |
| City Walk | €640,889 | 957 | €2,752 | 5.2% | 3.5% | +97% | 98 |
| Palm Jumeirah | €686,665 | 1,142 | €3,057 | 5.3% | 3.6% | +53% | 160 |
Net yield uses the same costs as the table above. The 10-year change is the price per sq ft of completed 1-beds now against the 12 months ending 10 years ago; a dash means the area had too few sales then. Areas need 90 or more 1-bed sales in the last 12 months to be in the table.
Three ways to choose:
- — Income first: the cheaper areas at the top of the table pay the most rent. Most grew least in ten years, and many buildings are older.
- — Growth first: look at the 10-year change (JVC, Arjan, Dubai Marina, City Walk), and at the new homes due in the area.
- — Easy exit: more sales a year means more buyers when you sell. JVC, Business Bay and Dubai Marina have the most.
What each area is like to live in, for your tenant: every community guide. What is selling now: what's hot and the RealEstateRanking. On a map: the Dubai map.
Your decision, step 2: which area?
Shortlist two or three areas. For each one, check:
- — the net yield after your Italian tax;
- — the 10-year price change, and the new homes due nearby (market data);
- — how many sales a year, so you can sell when you want;
- — the service charge in the buildings you like. It can be AED 12 or AED 25 per sq ft a year.
Next: choose the building.
Step 3. Which building: completed or off-plan, when you live in Italy
A completed flat can earn rent from the month you buy it. An off-plan flat costs more per sq ft, earns nothing until handover, and is often late.
| Completed (ready) | Off-plan | |
|---|---|---|
| Typical 1-bed price, 2026 | AED 1,050,000 (AED 1,350 per sq ft) | AED 1,287,500 (AED 1,704 per sq ft) |
| Rent | From the first month, if let | None until handover |
| How you pay | All at transfer (cash or a UAE loan) | In stages, often 10% to 20% at the start |
| Main risk from Italy | Paying too much for an old or badly run building | Late handover; you must pay each stage even if you cannot sell |
| What to check | Sold prices in the building, service charge, the tenancy | The developer's record on time, the build stage, the escrow account |
For each building, read its BUY DUBAI page: every Land Department sale, the price per sq ft, rents, the developer and the agent's view. Start from the tower list. Before you pay a deposit, use the six checks. To see which developers are selling homes they are not building, read the selling but not building tracker.
Your decision, step 3: which building?
Compare three buildings on:
- — the sold price per sq ft against the asking price;
- — the rent in that building, not in the area;
- — the service charge and what it pays for;
- — for off-plan: the developer's delays, the build stage today, and whether you can pay every stage without selling.
Next: choose who you buy with.
Step 4. Buying a Dubai property from Italy: who you need and what you sign
You can buy without living in Dubai. There is no notary as in Italy: the Land Department registers the sale, and your agent and your own checks do the rest.
| Who | What they do | How to check them |
|---|---|---|
| Agent (broker) | Finds the flat, drafts the sale contract (Form F), holds the deposit cheque | The broker card number (BRN) in the Dubai REST app; their sales on the agent league |
| Trustee office | Registers the transfer for the Land Department | Land Department-approved list |
| Lawyer (optional) | Checks the contract and the title; often needed for a power of attorney | UAE licence |
| Lender | A UAE bank (non-residents can usually borrow 50% to 60%), or a loan in Italy secured on an Italian home (up to about 70% of its value for employees) | See home loans |
| Property manager | Finds tenants, collects rent, pays bills | A licensed company; fees are often 5% to 8% of rent |
| Commercialista | IVIE, quadro RW, IRPEF on the rent, residence | Ordine dei commercialisti |
Signing from Italy. You can fly out for the transfer (about 5 hours 30 minutes from Rome, 6 hours from Milan), or give a power of attorney to someone in Dubai. The Land Department asks for a power of attorney made abroad to be notarised, legalised by the Italian authorities and the UAE Embassy, attested by the UAE Ministry of Foreign Affairs, and translated into Arabic. Allow 2 to 4 weeks or more.
Who to talk to first. Ask Dalia, the BUY DUBAI agent, on WhatsApp. She knows every sale, earns no commission and does not sell a listing. Send her your shortlist and your budget in euros. A licensed broker then does the transfer.
Sources: Dubai Land Department FAQ on power of attorney (read 11 October 2026); BUY DUBAI guides (foreign ownership, home loans, agents); Betterhomes FY2024 and FY2025 reports (Italy 3rd and 4th among buyer nationalities).
Your decision, step 4: who do you buy with?
Before you pay anything, you should have:
- — an agent whose broker number you checked, and whose past sales you can see;
- — the money ready: cash, an Italian loan, or a UAE bank pre-approval;
- — a plan to sign: a flight, or a power of attorney ready in time;
- — a property manager's fee and a tenant plan;
- — a word with a commercialista about IVIE, the quadro RW and IRPEF.
Next: ask Dalia to check your shortlist against the sales records.
Questions Italian buyers ask about Dubai property
Quanto costa un appartamento a Dubai? (How much does a flat cost in Dubai?)
A typical completed 1-bed sold for €256,812 (AED 1,050,000) in the last 12 months. In JVC it was €242,137. Buying costs for a cash buyer are about 6.5% of the price.
Quanto costa un appartamento a Dubai Marina?
A completed 1-bed in Dubai Marina sold for a median AED 1,720,000 in the last 12 months, about €420,700.
Conviene investire a Dubai? (Is it worth investing in Dubai?)
For rent before tax, often yes: a JVC 1-bed nets about 4.5% after costs. For an Italian resident, IVIE (1.06% of the cost a year) and IRPEF on the rent take a large part of that. If you live in the UAE and are not resident in Italy, neither applies.
Do I pay tax in Italy on a flat in Dubai?
Yes, if you are resident in Italy: IVIE each year, IRPEF on 85% of the rent, and IRPEF on a gain if you sell within 5 years. You declare it in the quadro RW.
Can I use the cedolare secca on Dubai rent?
No. The cedolare secca is only for property in Italy.
Is Dubai property going to crash? (Il mercato immobiliare di Dubai crollerà?)
Sales fell about a third from March 2026, after the regional war began, but prices of completed 1-beds held. They fell 35% from 2014 to 2020. See is Dubai going to crash.