Real estate in the UAE spans brokerage, development and property management, each with distinct VAT treatment — residential sales and leases are often exempt or zero-rated in specific circumstances, while commercial property and brokerage commissions are typically standard-rated. Real estate brokers also fall within the UAE’s DNFBP category, carrying separate anti-money-laundering obligations. We bring this full picture together for real estate businesses across the UAE.
Common Challenges We Solve
Correctly distinguishing VAT treatment between residential and commercial property transactions, which carry meaningfully different rules. Managing commission recognition timing for brokerages, where a deal can span months between agreement and closing. Tracking development costs and revenue recognition for developers working on multi-year, multi-phase projects.
We also help track leasing commissions across multi-year lease terms, since these are sometimes paid upfront but relate to income earned over the full lease period.
VAT & Tax Considerations for Real Estate
Getting the residential-versus-commercial VAT distinction right on every transaction is central to real estate compliance, since an error here creates either an under-collection risk or an unnecessary cost to your client. Real estate brokers also need goAML registration as DNFBPs, and developers managing multi-year projects need careful revenue recognition for Corporate Tax purposes.
Getting this right also matters for any future sale of the property or the company holding it, since a buyer’s due diligence will scrutinise historical VAT treatment closely.
Our Services for Real Estate
VAT registration and filing that correctly applies residential and commercial rules, Corporate Tax compliance for developers and brokerages, goAML Registration / Compliance for brokers, and Fixed Assets Services for property management companies tracking building improvements and equipment.
Who We Work With
Real estate brokerages, property developers, property management companies, and real estate investment structures operating across the UAE.
Getting Started
Tell us whether your business is brokerage, development or property management, and we will confirm the specific VAT and compliance considerations relevant to your operations.
Off-Plan Sales and Escrow Accounting
Property Management Service Charge Accounting
Property managers collecting service charges on behalf of owners’ associations need to keep these funds properly segregated and accounted for separately from the management company’s own revenue. We set up this separation correctly from the outset.
Real Estate Investment Trusts and Fund Structures
Common Area Maintenance Cost Recovery
Property managers and landlords recovering common area maintenance costs from tenants need this tracked and reconciled transparently, since it’s a frequent source of tenant disputes if not clearly documented. We build a clear, defensible cost recovery process for clients managing multi-tenant properties.
Broker Licensing and RERA Compliance
Handling Deposits and Advance Payments
Deposits collected on property transactions — whether for a sale, lease, or off-plan purchase — need to be tracked as a liability until the underlying transaction is complete, not recognised as revenue prematurely. We ensure this distinction is applied consistently across your transactions.
Mortgage and Financing Cost Accounting
Real estate businesses financing property acquisitions or developments through mortgages or other debt facilities need interest and financing costs tracked correctly against the specific asset or project they relate to. We help ensure this allocation is applied consistently across your portfolio.
We also help distinguish between capitalisable financing costs during a development phase and ongoing interest expense once a property is operational.
Get Expert Help for Your Business
Talk to an FTA-approved tax consultant today. Free consultation, no obligation — we’ll tell you exactly what your business needs.
Frequently Asked Questions
Generally, the first supply of new residential property within three years of completion is zero-rated, while subsequent sales and most other residential transactions are typically VAT-exempt — we confirm the correct treatment for your specific transaction.
Yes — real estate brokers and agents fall within the UAE’s DNFBP category and carry a mandatory goAML registration and reporting obligation.
We recognise commission income in line with when it is earned under your specific agreements, tracking deals from agreement through to closing.
Yes — we handle Corporate Tax registration, filing and revenue recognition specific to multi-year development projects.
Yes — including tracking service charges, building improvements and equipment through our Fixed Assets Services.