Accounting for real estate businesses
Brokerages, landlords and holding structures each have their own VAT and corporate tax quirks. We keep the ledgers clean and the tax treatment right — residential, commercial or mixed.
Real estate issues we handle
- Commission income recognition and agent commission splits
- VAT: exempt residential vs 5% commercial supplies, and mixed-use apportionment
- First-supply zero-rating on new residential property
- Input VAT recovery restrictions for exempt supplies
- Owner statements and portfolio-level reporting
- Corporate tax treatment of property income and holding entities
Getting property VAT right the first time
Real estate is where UAE VAT gets genuinely complex: residential leases are exempt, commercial is standard-rated, first supply of new residential within three years of completion is zero-rated, and mixed portfolios need input VAT apportionment. Wrong treatment compounds every quarter.
We classify each revenue stream properly at setup, apply the right recovery position, and keep documentation that survives an FTA query.
FAQs
Is rent subject to VAT in the UAE?
Residential rent is exempt from VAT; commercial rent carries 5%. The first supply of a new residential building within three years of completion is zero-rated — an important distinction for developers and first landlords.
Can a landlord recover input VAT?
Only to the extent it relates to taxable (commercial or zero-rated) supplies. Costs relating to exempt residential income aren't recoverable, and mixed costs must be apportioned with a defensible method.
How are brokerage commissions treated?
Brokerage commissions are standard-rated services — VAT applies at 5% regardless of whether the underlying property is residential or commercial.
Does corporate tax apply to rental income?
Income earned by a UAE company or licensed business from property is generally within the 9% corporate tax regime. Structure and reliefs matter — worth a proper review rather than assumptions.
Run the numbers with people who know your industry
Free consultation. Bring your latest P&L — or your shoebox of invoices. Both are fine.