Accounting and VAT for real estate in the UAE
For owners of commercial property, property holding companies and agencies. We keep the books on rent and commissions, file VAT and Corporate Tax, and show the owner what each property brings in.
- Rent · commissionsIncome by property
- VAT · CTReturns to the FTA
- Individuals & companiesAny form of ownership
Who we work with in real estate
Individual landlord
You lease offices or warehouses in your own name and are registered for VAT as an individual. We file your VAT returns and make sure tax is charged only on what is taxable.
Property holding company
A company owns properties and leases them out. We keep the books, prepare the financial statements and file the Corporate Tax return.
Real estate agency
Deal commissions, agent payouts, marketing spend. We keep the books and file VAT and Corporate Tax.
Business centre or property manager
Many tenants, service charges and deposits: books by tenant and by property, with arrears visible every month.
Every property and every lease accounted for
Rent, deposits, commissions and tax, kept apart and reconciled to the bank.
- Rental income by property and tenant: charged, paid, outstanding
- Tenant security deposits kept separately from income
- VAT on leases: 5% on commercial, exempt residential, zero-rated first supply of new homes; input VAT split for mixed-use buildings
- VAT registration and returns for individual landlords
- Agency commissions by deal and payouts to agents
- Financial statements under IFRS and the Corporate Tax return
- AML duties for agencies: goAML registration and a compliance programme, through our Compliance service
- Documents for the bank: statements and proof of income
Your portfolio on one page
A sample monthly summary for a commercial property owner. The figures are illustrative.
| Unit | Tenant | Rent | Lease ends | Status |
|---|---|---|---|---|
| Office 1204, Business Bay | Trading company | 18,500 | Mar 2027 | Paid |
| Office 1205, Business Bay | IT company | 17,000 | Nov 2026 | Renewal in 30 days |
| Warehouse, Al Quoz | Logistics company | 42,000 | Aug 2027 | 21,000 overdue |
| Showroom, Al Barsha | – | – | – | Vacant |
Real estate tax in the UAE: what matters
Commercial leases: 5% VAT
Offices, warehouses and shops are standard-rated. An owner whose commercial rent exceeds AED 375,000 over 12 months must register for VAT, even as an individual.
Residential leases: no VAT
Leasing homes is exempt from VAT. The exception is the first supply of a new residential building within three years of completion: it is zero-rated.
Mixed-use buildings
Where a building has both homes and commercial units, input VAT on repairs and maintenance is recoverable only for the commercial part. The split has to be calculated and supported.
Individuals and Corporate Tax
Rent an individual earns from their own property, without a licence for that activity, is not subject to Corporate Tax. Property held by a company is taxed at 9% on profit above AED 375,000.
Agencies are DNFBPs
Real estate brokers and agents must register on goAML, check their clients and report suspicious transactions. Fines for breaches start at AED 50,000.
From a pile of leases to a clear portfolio
The price depends on volume, not on the industry
Monthly bookkeeping from AED 700; a full finance function with VAT from AED 2,000 a month. We quote an exact price after reviewing your properties and leases.
Questions property owners and agencies ask
Does an individual need to register for VAT for leasing an office in the UAE?
Yes, if commercial rent over the last 12 months exceeds AED 375,000 or is expected to within the next 30 days. The owner registers in their own name, even without a company, and then files VAT returns, usually every quarter.
Is VAT charged on residential rent in the UAE?
No, leasing residential property is exempt. The first supply of a new residential building within three years of completion is zero-rated. Commercial leases carry 5%.
Does an individual pay Corporate Tax on rental income?
No, if they lease their own property without a licence for that activity: this income is outside Corporate Tax. If the property is held by a company, its profit above AED 375,000 is taxed at 9%.
Is a real estate agency's commission subject to VAT?
As a rule, yes: agency services are standard-rated at 5%, including commission on residential deals. The exemption covers the lease or sale of the home itself, not the broker's service.
How should a tenant's security deposit be recorded?
A refundable deposit is not income but an amount owed to the tenant. It is kept separately until it is returned or applied to unpaid rent or repairs.
Does a real estate agency need goAML registration?
Yes. Real estate brokers and agents are designated non-financial businesses (DNFBPs) under UAE AML rules: they must register on goAML, check their clients and report suspicious transactions. We set this up through our Compliance service.
How much does accounting cost for real estate?
It depends on the number of properties, tenants and transactions a month: from AED 700 for monthly bookkeeping, from AED 2,000 for a full finance function with VAT. We quote after reviewing your leases.
Let's sort out your business finances
Tell us what you own or manage: how many properties and tenants, in your name or through a company. We reply within one business day.