What Does Selling a Restaurant in the UAE Actually Involve?
Selling a restaurant in the UAE means transferring not just the physical fit-out and equipment but also the trade license, municipal food-permit, commercial lease, staff visas, and supplier contracts — a process governed by the Department of Economy and Tourism (DET/DED) and, for food premises, Dubai Municipality or Sharjah Municipality. Done correctly, a well-prepared exit can take four to eight weeks; done without preparation, it stalls at every government desk.
Before listing your restaurant you need to decide on the deal structure, establish a defensible asking price, prepare your paperwork, and engage the right advisors. Each step has UAE-specific rules that differ materially from western markets — particularly around trade-name transfer, NOC chains, and VAT deregistration.
Asset Sale vs. Share Sale: Which Structure Works for UAE Restaurants?
In a UAE context, you can sell either the legal entity that owns the restaurant (share transfer) or just the trading assets — fit-out, equipment, and operational rights (asset sale). Each has distinct tax, liability, and administrative consequences for a restaurant seller in Dubai or Sharjah.
Share transfer (LLC): The buyer acquires the entire LLC — trade license, staff file, VAT registration, and all contracts remain intact. This is the cleaner route for going-concern restaurants because the DED license and the food-service permit stay in place; only the ownership recorded on the Memorandum of Association (MoA) changes. Government fees run AED 1,500–5,000 for the DET amendment, plus notary charges of roughly 0.25% of the share-transfer value. The trade name transfers automatically with the entity.
Asset sale: The seller’s LLC is wound down or kept; the buyer opens a new license and takes over physical assets under a separate sale-and-purchase agreement. This is common for sole establishments — the existing license is cancelled and re-issued in the buyer’s name. The buyer must obtain fresh municipality food-safety approvals and re-register Ejari for the commercial lease from scratch, adding three to six weeks. Asset sales can suit buyers who want to rebrand; they suit sellers less because residual liabilities remain until the old entity is formally deregistered.
For most established restaurant businesses in Dubai and Sharjah, a share transfer of the LLC is the preferred path — it preserves operational continuity and reduces the compliance reset the buyer must complete.
How to Value Your Restaurant: SDE, EBITDA, and Asset Methods
Restaurant valuation in the UAE uses three primary methods: Seller’s Discretionary Earnings (SDE) multiples for owner-operated outlets, EBITDA multiples for management-run or multi-branch operations, and asset-based valuation as a floor for distressed sales.
SDE Multiples
SDE = net profit + owner’s salary + discretionary add-backs (personal expenses run through the business). For single-location, owner-operated restaurants in the UAE, the market typically applies a multiple of 2.0x–3.0x SDE. A well-run café or casual dining outlet generating AED 400,000 SDE annually might list at AED 800,000–1,200,000 as a going concern. Kitchens producing below AED 200,000 SDE rarely find willing buyers above asset value.
EBITDA Multiples
Larger, management-led restaurants and multi-branch F&B groups are valued on EBITDA. UAE F&B transactions typically price at 2.8x–4.5x EBITDA, with premium concepts in Dubai Marina, Downtown, or the Palm commanding the upper end. A branded concept with AED 1.5 million EBITDA and a solid delivery-platform presence (Talabat/Deliveroo contribution above 30%) can achieve 4x+. Grant Thornton’s UAE M&A sector data confirms that multi-unit QSR and fast-casual franchises transact at the higher end of this range.
Asset-Based (Floor) Valuation
If the restaurant is loss-making or the lease is short-dated, buyers will revert to a fit-out depreciated value plus equipment book value. A full commercial kitchen fit-out in the UAE typically depreciates to 30–50% of original cost within three years. This is your floor — the minimum a distressed seller can expect.
UAE-Specific Value Drivers
- Lease term remaining: A lease with fewer than 18 months remaining severely suppresses value; five or more years remaining is a premium.
- Liquor license: A valid Dubai liquor permit attached to the premises can add 20–30% to valuation, as new licenses are tightly controlled.
- Delivery revenue split: Post-2020, buyers discount restaurants where 100% of revenue is dine-in; a healthy Talabat/Deliveroo/Noon Food mix is viewed positively.
- Trade name recognition: A registered and recognisable trade name in Dubai or Sharjah carries a goodwill premium; verify trademark registration with the Ministry of Economy before quoting a price.
For a professional UAE-compliant valuation, engage a licensed business valuation firm — expect to pay AED 5,000–15,000 for a formal report, which most sophisticated buyers will require before signing a term sheet.
Preparing Your Restaurant for Sale
Buyer due diligence in the UAE has become more structured since Corporate Tax was introduced in June 2023, and sellers who prepare their documentation in advance close faster and at higher prices. Begin preparation at least six months before you intend to sell.
Financial Pack
- Three years of audited financial statements (or management accounts reconciled to bank statements as a minimum)
- VAT returns for all filed periods on EmaraTax
- Corporate Tax registration confirmation (mandatory for all UAE businesses from financial years starting on or after 1 June 2023)
- POS revenue reports broken down by month, platform, and category
- Food-cost and gross-margin analysis by menu category
Corporate and Regulatory Pack
- Valid trade license (DED mainland or free zone)
- Municipality food-safety permit — Dubai Municipality or Sharjah City Municipality, depending on your emirate
- Civil Defence NOC for the premises
- Current MoA with accurate shareholder register
- UBO (Ultimate Beneficial Owner) register — mandatory under UAE Federal Law No. 20 of 2020
- Ejari-registered commercial lease with assignability clause confirmed in writing from your landlord
Operational Pack
- Full staff roster: roles, salaries, visa expiry dates, and calculated gratuity liabilities under UAE Labour Law
- Supplier agreements with notice periods and change-of-ownership clauses identified
- Delivery platform contracts (Talabat, Deliveroo, Careem)
- Equipment list with purchase dates and warranties
If you are planning a larger renovation or concept refresh before listing, a well-executed refit can materially lift both the buyer pool and the achievable multiple. Our restaurant renovation service helps UAE operators modernise premises prior to a sale or handover.
Transferring the DED Trade License and Trade Name in Dubai
In Dubai, every mainland ownership change must be approved and registered with the Department of Economy and Tourism (DET, formerly DED). The transfer does not happen automatically on signing — it requires a formal government workflow that amends the company’s MoA and issues a revised trade license to the new owners.
Step-by-Step DET Transfer Process
- Obtain partner NOCs: All existing shareholders must issue notarised No-Objection Certificates consenting to the share transfer.
- Draft and execute Share Transfer Agreement: The SPA sets out price, shares transferred, warranties, and conditions. This must be signed and notarised at Dubai Courts or an accredited notary.
- Amend and notarise the MoA: An addendum to the Memorandum of Association is prepared by a licensed legal consultant, notarised through Dubai Courts, and submitted to DET.
- DET portal submission: Submit via the DET Business Registration portal (or a registered typing centre). DET reviews and may request external regulatory clearance — for food-service businesses, this includes Dubai Municipality confirmation that the food permit is in good standing.
- Pay amendment fees: Government fees of AED 1,500–5,000 plus notary charges (0.25% of share-transfer value).
- Receive revised trade license: DET issues an updated trade license reflecting the new shareholders. The trade name transfers with the entity automatically under an LLC share transfer.
For sole establishments (individual trader licenses), the process differs: the existing license is cancelled and a new one is issued in the buyer’s name. This takes longer — budget four to six weeks and a full re-application for municipality food permits.
In Sharjah, the equivalent authority is the Sharjah Economic Development Department (SEDD). The procedural steps mirror DET but all documentation and filings go through SEDD’s channels, and the Sharjah City Municipality issues the food-safety permit transfer separately.
Assigning the Commercial Lease and Municipality Permits
A restaurant’s physical premises — and the food-safety permit tied to that address — are among the most critical assets a buyer acquires. Lease assignment in the UAE requires explicit landlord consent; you cannot transfer a commercial tenancy without it.
Lease Assignment Steps
- Check the lease for assignment clause: Most commercial leases in Dubai and Sharjah prohibit assignment without written landlord consent. Identify this clause before you market the business.
- Obtain landlord NOC: Approach the landlord early — ideally before you have a signed buyer. Some landlords will consent only on a rent review or a lease renewal; factor this into your timeline and price.
- Re-register Ejari: In Dubai, the Ejari registration must be updated to reflect the new tenant. This is done through the Real Estate Regulatory Agency (RERA) portal. In Sharjah, the lease is registered with Sharjah Municipality’s rental department.
- Municipality food-safety permit re-issuance: Dubai Municipality’s Food Safety Department and Sharjah City Municipality both require a permit amendment or re-application when the licensee changes — even if the physical premises and kitchen layout remain identical. Submit the updated trade license, new MoA, and a valid NOC from the landlord confirming the new tenant.
- Civil Defence NOC update: Civil Defence issues site-specific NOCs for commercial kitchens. Confirm with the buyer whether the existing NOC transfers or requires resubmission.
FTA Obligations: VAT and Corporate Tax on the Sale
Selling a restaurant in the UAE triggers obligations with the Federal Tax Authority (FTA) that sellers frequently overlook until the last week before handover.
VAT on Business Sale
Under UAE VAT law (Federal Decree-Law No. 8 of 2017), the transfer of a going concern — where all assets and liabilities of a business are sold as a functioning unit — can qualify as outside the scope of VAT, meaning no VAT is charged on the sale price. Both buyer and seller must be VAT-registered, and the buyer must continue the same taxable activity. If the transfer does not qualify as a going concern (e.g., only equipment is sold), standard 5% VAT applies to the taxable assets.
If the seller is winding down the legal entity post-sale, they must apply for VAT deregistration through EmaraTax within 20 business days of ceasing taxable activity. All VAT returns must be filed and dues cleared before the FTA approves deregistration. Upon pre-approval, the seller has a 28-day window to submit the final VAT return.
Corporate Tax
UAE Corporate Tax (Federal Decree-Law No. 47 of 2022) applies at 9% on taxable profits above AED 375,000. Gains arising from the sale of the business are subject to CT unless the seller qualifies for the Participation Exemption (where at least 5% ownership in the entity is held for a minimum of 12 months). Obtain advice from a UAE-registered tax agent before structuring your exit.
Finding Buyers and Working with Business Brokers
The UAE has a growing ecosystem of business brokers, M&A advisors, and online marketplaces specialising in F&B going-concern sales. For restaurants priced below AED 2 million, platforms such as BusinessesForSale.com/UAE, SMERGERS, and Wusool Capital’s marketplace are active listing channels. Above AED 5 million, specialist F&B M&A advisors — including regional offices of Grant Thornton, KPMG Deal Advisory, and boutique firms like Wusool Capital — are the standard route to institutional and strategic buyers (hospitality groups, family offices, franchise operators looking to expand across the GCC).
Broker fees in the UAE typically range from 3–8% of the sale price, with the higher end applying to smaller transactions where absolute deal value is modest. Exclusivity periods of three to six months are standard.
Alternatively, direct buyer outreach to competitors, suppliers, and landlords often surfaces motivated buyers quickly — many UAE restaurant acquisitions happen off-market. If your concept has franchise potential, engaging a franchise consultant prior to sale can reposition the business and widen the buyer pool significantly. Our restaurant concept design service helps define and document what makes your brand replicable — a key asset for franchise-minded buyers.
For context on what buyers look for when acquiring a UAE restaurant, see our companion guide: how to buy a restaurant in the UAE. Understanding the buyer’s perspective sharpens your preparation and negotiation position.
Due Diligence: What Buyers Will Scrutinise
UAE buyers — especially those advised by regional accounting or law firms — now run structured due diligence that covers financial, legal, regulatory, and operational tracks simultaneously. Expect the following areas to be examined:
- Revenue quality: Buyers discount revenue that is heavily dependent on a single delivery platform, a single corporate client, or seasonal peaks that do not recur predictably.
- Employee liabilities: Unpaid gratuity (end-of-service benefit under UAE Labour Law) and undeclared overtime are common deal-killers. Calculate and disclose the full liability upfront.
- Lease assignability and term: As noted, a short lease or an uncooperative landlord is a frequent deal-stopper. Resolve this before entering due diligence.
- Regulatory standing: Buyers will verify with DET, Dubai/Sharjah Municipality, and the Ministry of Human Resources and Emiratisation (MOHRE) that no violations, fines, or pending inspections are on file.
- Supplier concentration: If one supplier provides 60% of your core ingredients and has no contract, a buyer will either discount the price or require a new supply agreement as a condition of close.
- Change-of-control clauses: Review every material contract for provisions that terminate or renegotiate automatically on a change of ownership — POS systems, delivery platform agreements, and equipment finance contracts commonly contain these.
Understanding your restaurant’s financial health before you enter a sale process puts you in a stronger negotiating position. Our guide to restaurant profit margins in the UAE covers the benchmarks buyers use to assess your normalised earnings.
Complete Timeline: From Decision to Handover
A realistic timeline for selling a going-concern restaurant in the UAE, assuming preparation starts six months before target close:
- Months 1–2: Business valuation, document preparation, lease assignability confirmed, business broker engaged or direct buyer outreach begun.
- Month 3: Information memorandum issued to qualified buyers; indicative offers received; preferred buyer selected; Heads of Terms / Letter of Intent signed.
- Month 4: Full due diligence by buyer (financial, legal, regulatory); legal drafting of Share Purchase Agreement; landlord NOC process initiated.
- Month 5: SPA signed; DET/SEDD ownership transfer filed; Ejari re-registered; municipality permits transferred; staff visa transitions initiated.
- Month 6: Completion; keys and operational handover; FTA deregistration filed (if seller is winding down); bank mandate changes completed.
Sellers who begin preparation with a proper restaurant business plan framing — documented systems, supplier lists, and operating procedures — significantly reduce buyer due diligence time and command a higher multiple. If you are exploring the full range of services available to UAE F&B operators, our complete services overview covers setup, renovation, and operational support.
Frequently Asked Questions
How long does it take to sell a restaurant in the UAE?
A well-prepared restaurant sale in Dubai or Sharjah typically takes four to six months from decision to handover. The DED/DET ownership transfer itself takes one to two weeks once all documents are in order; due diligence and contract negotiation are the longest phases.
Do I need a business broker to sell my UAE restaurant?
Not legally, but a broker with UAE F&B experience adds value by pricing the business correctly, screening buyers for financial capacity, and managing the document process. For restaurants below AED 1 million in asking price, direct listing on platforms like BusinessesForSale.com/UAE or SMERGERS is a viable alternative.
What happens to my employees when I sell the restaurant?
Under a share transfer, staff visa sponsorship remains under the same legal entity, and employees continue with unchanged employment contracts. Buyers typically review all visa expiry dates and may negotiate a gratuity liability adjustment in the purchase price. If the entity is wound down in an asset sale, employees must be fully settled — final pay, gratuity, and cancellation — before the license is deregistered.
Is the sale of my restaurant subject to VAT in the UAE?
If structured as a transfer of a going concern — the entire operating restaurant transferred as a functioning business — the sale can be outside the scope of UAE VAT under FTA guidelines. If only assets (equipment, fit-out) are sold separately, standard 5% VAT applies. Confirm the structure with a UAE-registered tax agent before signing the sale agreement.
Can a foreign buyer purchase my restaurant in Dubai?
Yes. Under UAE Federal Law No. 26 of 2020, foreign nationals can own 100% of a mainland LLC in most commercial activities, including restaurants. The DET ownership transfer process applies regardless of the buyer’s nationality. Some activities may still require a local service agent or specific approvals — verify with DET at application stage.
Related guide: This article is part of our complete guide to opening a restaurant in the UAE.
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What Does Selling a Restaurant in the UAE Actually Involve?
Selling a restaurant in the UAE means transferring not just the physical fit-out and equipment but also the trade license, municipal food-permit, commercial lease, staff visas, and supplier contracts — a process governed by the Department of Economy and Tourism (DET/DED) and, for food premises, Dubai Municipality or Sharjah Municipality. Done correctly, a well-prepared exit can take four to eight weeks; done without preparation, it stalls at every government desk.
Before listing your restaurant you need to decide on the deal structure, establish a defensible asking price, prepare your paperwork, and engage the right advisors. Each step has UAE-specific rules that differ materially from western markets — particularly around trade-name transfer, NOC chains, and VAT deregistration.
Asset Sale vs. Share Sale: Which Structure Works for UAE Restaurants?
In a UAE context, you can sell either the legal entity that owns the restaurant (share transfer) or just the trading assets — fit-out, equipment, and operational rights (asset sale). Each has distinct tax, liability, and administrative consequences for a restaurant seller in Dubai or Sharjah.
Share transfer (LLC): The buyer acquires the entire LLC — trade license, staff file, VAT registration, and all contracts remain intact. This is the cleaner route for going-concern restaurants because the DED license and the food-service permit stay in place; only the ownership recorded on the Memorandum of Association (MoA) changes. Government fees run AED 1,500–5,000 for the DET amendment, plus notary charges of roughly 0.25% of the share-transfer value. The trade name transfers automatically with the entity.
Asset sale: The seller’s LLC is wound down or kept; the buyer opens a new license and takes over physical assets under a separate sale-and-purchase agreement. This is common for sole establishments — the existing license is cancelled and re-issued in the buyer’s name. The buyer must obtain fresh municipality food-safety approvals and re-register Ejari for the commercial lease from scratch, adding three to six weeks. Asset sales can suit buyers who want to rebrand; they suit sellers less because residual liabilities remain until the old entity is formally deregistered.
For most established restaurant businesses in Dubai and Sharjah, a share transfer of the LLC is the preferred path — it preserves operational continuity and reduces the compliance reset the buyer must complete.
How to Value Your Restaurant: SDE, EBITDA, and Asset Methods
Restaurant valuation in the UAE uses three primary methods: Seller’s Discretionary Earnings (SDE) multiples for owner-operated outlets, EBITDA multiples for management-run or multi-branch operations, and asset-based valuation as a floor for distressed sales.
SDE Multiples
SDE = net profit + owner’s salary + discretionary add-backs (personal expenses run through the business). For single-location, owner-operated restaurants in the UAE, the market typically applies a multiple of 2.0x–3.0x SDE. A well-run café or casual dining outlet generating AED 400,000 SDE annually might list at AED 800,000–1,200,000 as a going concern. Kitchens producing below AED 200,000 SDE rarely find willing buyers above asset value.
EBITDA Multiples
Larger, management-led restaurants and multi-branch F&B groups are valued on EBITDA. UAE F&B transactions typically price at 2.8x–4.5x EBITDA, with premium concepts in Dubai Marina, Downtown, or the Palm commanding the upper end. A branded concept with AED 1.5 million EBITDA and a solid delivery-platform presence (Talabat/Deliveroo contribution above 30%) can achieve 4x+. Grant Thornton’s UAE M&A sector data confirms that multi-unit QSR and fast-casual franchises transact at the higher end of this range.
Asset-Based (Floor) Valuation
If the restaurant is loss-making or the lease is short-dated, buyers will revert to a fit-out depreciated value plus equipment book value. A full commercial kitchen fit-out in the UAE typically depreciates to 30–50% of original cost within three years. This is your floor — the minimum a distressed seller can expect.
UAE-Specific Value Drivers
For a professional UAE-compliant valuation, engage a licensed business valuation firm — expect to pay AED 5,000–15,000 for a formal report, which most sophisticated buyers will require before signing a term sheet.
Preparing Your Restaurant for Sale
Buyer due diligence in the UAE has become more structured since Corporate Tax was introduced in June 2023, and sellers who prepare their documentation in advance close faster and at higher prices. Begin preparation at least six months before you intend to sell.
Financial Pack
Corporate and Regulatory Pack
Operational Pack
If you are planning a larger renovation or concept refresh before listing, a well-executed refit can materially lift both the buyer pool and the achievable multiple. Our restaurant renovation service helps UAE operators modernise premises prior to a sale or handover.
Transferring the DED Trade License and Trade Name in Dubai
In Dubai, every mainland ownership change must be approved and registered with the Department of Economy and Tourism (DET, formerly DED). The transfer does not happen automatically on signing — it requires a formal government workflow that amends the company’s MoA and issues a revised trade license to the new owners.
Step-by-Step DET Transfer Process
For sole establishments (individual trader licenses), the process differs: the existing license is cancelled and a new one is issued in the buyer’s name. This takes longer — budget four to six weeks and a full re-application for municipality food permits.
In Sharjah, the equivalent authority is the Sharjah Economic Development Department (SEDD). The procedural steps mirror DET but all documentation and filings go through SEDD’s channels, and the Sharjah City Municipality issues the food-safety permit transfer separately.
Assigning the Commercial Lease and Municipality Permits
A restaurant’s physical premises — and the food-safety permit tied to that address — are among the most critical assets a buyer acquires. Lease assignment in the UAE requires explicit landlord consent; you cannot transfer a commercial tenancy without it.
Lease Assignment Steps
FTA Obligations: VAT and Corporate Tax on the Sale
Selling a restaurant in the UAE triggers obligations with the Federal Tax Authority (FTA) that sellers frequently overlook until the last week before handover.
VAT on Business Sale
Under UAE VAT law (Federal Decree-Law No. 8 of 2017), the transfer of a going concern — where all assets and liabilities of a business are sold as a functioning unit — can qualify as outside the scope of VAT, meaning no VAT is charged on the sale price. Both buyer and seller must be VAT-registered, and the buyer must continue the same taxable activity. If the transfer does not qualify as a going concern (e.g., only equipment is sold), standard 5% VAT applies to the taxable assets.
If the seller is winding down the legal entity post-sale, they must apply for VAT deregistration through EmaraTax within 20 business days of ceasing taxable activity. All VAT returns must be filed and dues cleared before the FTA approves deregistration. Upon pre-approval, the seller has a 28-day window to submit the final VAT return.
Corporate Tax
UAE Corporate Tax (Federal Decree-Law No. 47 of 2022) applies at 9% on taxable profits above AED 375,000. Gains arising from the sale of the business are subject to CT unless the seller qualifies for the Participation Exemption (where at least 5% ownership in the entity is held for a minimum of 12 months). Obtain advice from a UAE-registered tax agent before structuring your exit.
Finding Buyers and Working with Business Brokers
The UAE has a growing ecosystem of business brokers, M&A advisors, and online marketplaces specialising in F&B going-concern sales. For restaurants priced below AED 2 million, platforms such as BusinessesForSale.com/UAE, SMERGERS, and Wusool Capital’s marketplace are active listing channels. Above AED 5 million, specialist F&B M&A advisors — including regional offices of Grant Thornton, KPMG Deal Advisory, and boutique firms like Wusool Capital — are the standard route to institutional and strategic buyers (hospitality groups, family offices, franchise operators looking to expand across the GCC).
Broker fees in the UAE typically range from 3–8% of the sale price, with the higher end applying to smaller transactions where absolute deal value is modest. Exclusivity periods of three to six months are standard.
Alternatively, direct buyer outreach to competitors, suppliers, and landlords often surfaces motivated buyers quickly — many UAE restaurant acquisitions happen off-market. If your concept has franchise potential, engaging a franchise consultant prior to sale can reposition the business and widen the buyer pool significantly. Our restaurant concept design service helps define and document what makes your brand replicable — a key asset for franchise-minded buyers.
For context on what buyers look for when acquiring a UAE restaurant, see our companion guide: how to buy a restaurant in the UAE. Understanding the buyer’s perspective sharpens your preparation and negotiation position.
Due Diligence: What Buyers Will Scrutinise
UAE buyers — especially those advised by regional accounting or law firms — now run structured due diligence that covers financial, legal, regulatory, and operational tracks simultaneously. Expect the following areas to be examined:
Understanding your restaurant’s financial health before you enter a sale process puts you in a stronger negotiating position. Our guide to restaurant profit margins in the UAE covers the benchmarks buyers use to assess your normalised earnings.
Complete Timeline: From Decision to Handover
A realistic timeline for selling a going-concern restaurant in the UAE, assuming preparation starts six months before target close:
Sellers who begin preparation with a proper restaurant business plan framing — documented systems, supplier lists, and operating procedures — significantly reduce buyer due diligence time and command a higher multiple. If you are exploring the full range of services available to UAE F&B operators, our complete services overview covers setup, renovation, and operational support.
Frequently Asked Questions
How long does it take to sell a restaurant in the UAE?
A well-prepared restaurant sale in Dubai or Sharjah typically takes four to six months from decision to handover. The DED/DET ownership transfer itself takes one to two weeks once all documents are in order; due diligence and contract negotiation are the longest phases.
Do I need a business broker to sell my UAE restaurant?
Not legally, but a broker with UAE F&B experience adds value by pricing the business correctly, screening buyers for financial capacity, and managing the document process. For restaurants below AED 1 million in asking price, direct listing on platforms like BusinessesForSale.com/UAE or SMERGERS is a viable alternative.
What happens to my employees when I sell the restaurant?
Under a share transfer, staff visa sponsorship remains under the same legal entity, and employees continue with unchanged employment contracts. Buyers typically review all visa expiry dates and may negotiate a gratuity liability adjustment in the purchase price. If the entity is wound down in an asset sale, employees must be fully settled — final pay, gratuity, and cancellation — before the license is deregistered.
Is the sale of my restaurant subject to VAT in the UAE?
If structured as a transfer of a going concern — the entire operating restaurant transferred as a functioning business — the sale can be outside the scope of UAE VAT under FTA guidelines. If only assets (equipment, fit-out) are sold separately, standard 5% VAT applies. Confirm the structure with a UAE-registered tax agent before signing the sale agreement.
Can a foreign buyer purchase my restaurant in Dubai?
Yes. Under UAE Federal Law No. 26 of 2020, foreign nationals can own 100% of a mainland LLC in most commercial activities, including restaurants. The DET ownership transfer process applies regardless of the buyer’s nationality. Some activities may still require a local service agent or specific approvals — verify with DET at application stage.
Related guide: This article is part of our complete guide to opening a restaurant in the UAE.
Make My Restaurant is a UAE-based turnkey restaurant-services company — design, fit-out, MEP, compliance, cleaning and back-office support across all seven emirates.