Scenario 3: Scenario 3: How much tax do I pay in Box 3 on €1 million worth of real estate in Dubai?

💰 Real Estate in Dubai – Box 3 Calculation for 2025

Step 1: Calculate the deemed return
Real estate: 6.04% of €1,000,000 = €60,400

Step 2: Tax-free allowance (for fiscal partners)
Exempted capital = €114,000
Exempted return = 6.04% of €114,000 = €6,885

Step 3: Taxable return
€60,400 - €6,885 = €53,515

Step 4: Calculate the tax
36% of €53,515 = €19,265

Step 5: Double taxation relief
Since the property is located in Dubai, you are entitled to a tax credit to avoid double taxation.
Relief = 36% of the Dubai part of the deemed return (in this case 100%, since all real estate is in Dubai).
Relief = 36% of €53,515 = €19,265

✅ Final result: Box 3 tax on €1 million Dubai property
Normal tax: €19,265
Relief (double taxation): -€19,265
Total tax due: €0

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