Taxation & returns
VAT and corporate tax in the UAE: what it means for a real estate investor
Léonard Arzouni · 24 September 2026
Dubai is known for its light taxation, but the UAE has introduced taxes that concern some real estate investors. This article gives general benchmarks; it does not replace the advice of a tax professional.
5% VAT
The UAE has applied a 5% VAT since 2018. Its treatment differs depending on the type of property:
- Renting out a residential property is generally exempt.
- The first sale of a new home can benefit from a zero rate under certain conditions, notably timing.
- Commercial properties (offices, retail) are generally subject to VAT, which imposes reporting obligations on their owner once certain thresholds are reached.
The agency commission, for its part, is subject to VAT.
Corporate tax
A federal corporate tax of 9% has applied since 2023 to profits exceeding a threshold of AED 375,000. It mainly concerns companies and commercial activities. An individual who owns a property in a personal capacity is generally not affected, unless their activity has the character of a business.
Holding a property through a company
A local company can hold properties, but it is subject to obligations: registration, accounting, filings, and, depending on the case, corporate tax and VAT. This structure is justified by a specific objective (wealth planning, inheritance, professional rental activity), not used by default.
What doesn't change
There is still no annual property tax and no personal income tax in the UAE, and property capital gains are not taxed locally. The taxation of the investor's country of residence, however, remains applicable.
The right questions
- Is the property held in a personal capacity or through a company?
- Is it residential or commercial?
- What is the investor's country of tax residence?
A starting point
These rules evolve. Before any purchase, having taxation simulated by a competent advisor in both countries avoids unpleasant surprises.
To review your project and check the conditions currently in force, book an appointment with Arzouni Properties.
Keep reading
- Service charges in Dubai: what they cover and how to assess them
Maintenance, security, amenities: understanding Dubai's service charges before buying, and why they weigh on yield.
- Taxation of a Dubai property for a French tax resident
Rent, capital gains, wealth tax, tax treaty: what to check when you hold a Dubai property while living in France.
- Rental yield in Dubai: gross, net and how to calculate it
How to calculate a realistic yield: rent, charges, vacancy, acquisition costs, with a worked example.