Tall apartment towers on Central Park South rising behind the lake in Central Park, Manhattan
Photo: Christian David / Wikimedia Commons, CC BY-SA 4.0

vizmaya desk · 15 October 2026

New York taxes empty second homes, not rented ones

What a flat abroad really pays you, or costs you, in New York, London and Dubai. We start from the very first question.

First principles

What is a flat abroad, really?

A machine with two pipes. Rent flows in. Bills flow out: taxes, fees, repairs, and the cost of holding it when nobody lives there.

If more flows in than out, the flat pays you. If not, you pay it.

Three cities

Each city sends its bill at a different moment.

Dubai charges most of its cost once, on the day you buy. London charges when you buy, and adds a yearly charge from 2028. New York now also bills you every year if the home sits empty.

Sources: GOV.UK; NY State Tax Department; Dubai fee from broker guides (confirm with the Dubai Land Department).

The newest rule

New York now bills second homes every year.

The yearly tax started on 1 July 2026. It hits a home that is nobody's main home: a house worth $5 million or more, or a flat (condo or co-op) worth $1 million or more.

Sources: Day Pitney, Katten, on NY Tax Law Article 30-C.

Bow Bridge over the lake in Central Park with Central Park South towers in the background
Photo: Christian David / Wikimedia Commons, CC BY-SA 4.0

The twist

One flat. Two doors.

Leave it empty and the yearly tax applies. Lease it for a year or more to a tenant who lives there as their main home, in a normal deal between strangers, and it does not.

The lease must be real. Lawyers warn it cannot be set up only to dodge the tax.

The newest numbers

Even so, buyers kept signing.

In the two weeks to 11 October, 55 contracts were signed on Manhattan homes asking $4 million or more. The ten-year average for the same stretch is 47.

We do not know why. The tax is one thing in the background, not a proven cause.

Source: Olshan Realty weekly data, via The Real Deal and Elevated Advisement.

Dubai

Dubai pays more rent than most big cities.

Prime homes in Dubai paid about 5.3% of their price in yearly rent in 2024. The average across 30 big cities was 3.2% in 2025.

These are before service charges, empty months and repairs.

Source: Savills prime yield note and World Cities 2026.

But

Then the price moved the other way.

10%

about how far Dubai home prices have fallen since the end of 2025. Estimates range from 5% to 15%.

Reports tie the slowdown to buyer caution after the regional war that began on 28 February 2026.

Source: The National, 7 October 2026.

Dubai Marina skyline at night, with rows of lit residential towers
Photo: Khanshahab06 / Wikimedia Commons, CC BY-SA 4.0

A made-up example

One price fall can undo two years of rent.

A flat costs $1,000,000 and rents for $50,000 a year. In Dubai the buyer pays a 4% fee, $40,000, on day one.

If the price then falls 10%, that is $100,000 on paper. The same as two years of rent.

Hypothetical. Round numbers. Not a forecast. Before service charges, repairs and agent fees.

London

London charges at the door, then again from 2028.

Stamp duty reaches 12% on the slice of the price above £1.5 million. On top, 5% more for an extra home, and 2% more if you do not live in the UK.

From April 2028, homes worth £2 million or more also pay £2,500 to £7,500 a year.

Source: GOV.UK stamp duty, high value council tax surcharge.

The courtyard of Albany, a historic block of apartments off Piccadilly in central London
Photo: Ham / Wikimedia Commons, CC BY-SA 3.0

From India

The road out of India has three gates.

If you live in India for tax, three rules sit between your rupees and a flat abroad.

If you are an NRI, which rules apply depends on your status and where the money comes from. Check before you move money.

Sources: RBI FAQ; PKC India; Business Standard.

What can go wrong

Rules like this can change after you buy.

On 29 September a court cancelled about 17,000 of the tax notices. The city appealed the same day and says the tax stays in force while the appeal runs.

London's yearly charge only starts in April 2028.

Source: Day Pitney, EisnerAmper.

What you can take from this

Two questions work for any asset.

A price tells you what someone might pay. The yearly cash tells you whether it carries itself. It works for a rented room, a small shop or a fund that pays out.

Your turn

If you owned a flat abroad, would you rent it out or keep it for yourself, and why?

Tell us in the comments.

This is general information, not personal advice. Property prices can fall as well as rise, and tax and legal rules differ by person and country and can change.

Sources & method

New York

London and Dubai

India

Photos

  • Christian David, CC BY-SA 4.0 (title, New York); Khanshahab06, CC BY-SA 4.0 (Dubai); Ham, CC BY-SA 3.0 (London). All via Wikimedia Commons.

Method

Each figure has two independent sources or one official one. We left out figures we could not confirm, including GIFT City routes and how the rupee has moved. The India figures are for residents and should be checked with a tax adviser. The made-up example is not a forecast. More: vizmaya stories.