VAT on real estate in UAE properties such as residential and commercial should be understood by all landlords and real estate professionals.
In 2018, the United Arab Emirates (UAE) imposed Value Added Tax (VAT). This has a major impact on a number of economic sectors. The real estate sector is one more of these. VAT on real estate transactions, including those in Dubai, applies to specific goods and services within the nation.
The government organization in charge of all tax-related matters in the UAE is the FTA. Most FTA services can be accessed electronically through the www.tax.gov.ae website. For more information regarding VAT in UAE you could also refer to https://mof.gov.ae/vat/
Unicorn Global Solutions is authorized by the government of UAE to help you with all VAT services and VAT registration with trusted and experienced professionals who will assist and guide you through the entire process

What Exactly Are Services Related to VAT on Real Estate?
An essential component of the UAE’s economic diversification is the real estate industry.
All properties other than bare ground, those constructed for residential use, and those constructed for charity purposes are regarded by the FTA as commercial buildings.
Certain real estate transactions are tax-free, while others have a 5% or 0% tax rate. This implies that in certain circumstances, you might need to register for VAT, but not in others!
With a five percent VAT on real estate in UAE, buyer interests in Dubai’s real estate transactions are unlikely to be majorly affected, given the modest rate compared to other nations.
Residential VAT on Real Estate in UAE
At the time of sale, the resale house market is VAT-free.
Taxes are due on government fees and commissions that are associated with purchases by buyers.
VAT on real estate in Dubai will only apply to lease management services and other property management services.
VAT on Commercial Property in the UAE
Every building is regarded by the FTA as commercial property; if it is not—
- Employed for charitable purposes
- bare terrain developed for habitation
- VAT on real estate applies to both secondary and off-plan market units in the UAE. While owners are exempt, buyers of commercial properties, intended for leasing to businesses, must pay VAT.
Residential Property VAT
The FTA defines residential premises for VAT purposes to include the following entities:
- Building that is inhabited or intended to be occupied by an individual
- Structures that serve as residences for students
- Foster Homes
- Nursing facilities and rest homes
- farmhouses situated on agricultural land
- A small portion of the building used as a workstation or office will also be considered a residential structure for VAT purposes.
Does VAT apply to real estate transactions in the UAE?
Since a supply of real estate is seen as a supply of goods, the answer is indeed taxed.
There are, however, some exclusions and some real estate supplies are either zero-rated or regarded as executed supplies.
The following categories of real estate deals are free from UAE VAT:
- The availability of current residential real estate
- The availability of bare land
Which kinds of real estate deals qualify as Zero Rated?
The real estate transactions listed below are zero-rated (0% VAT) from UAE VAT:
- Initial Provision of a residential structure.
- Construction of a new building for charity.
Note: The UAE VAT does not apply to real estate supplied within designated zones.
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Our committed team of professionals skillfully navigates the intricate terrain of VAT legislation, from registration to filing, guaranteeing complete compliance while lowering risks and optimizing advantages for our clients.
UGS streamlines the VAT procedure with cutting-edge technology and individualized support, allowing companies to concentrate on their main goals while we take care of the complexities of tax administration. You can be confident that UGS will not only meet but also beyond your VAT needs, making us the go-to partner for companies looking for top-notch VAT services.