17/02/2026
π° NEWS | VAT in Real Estate, What Businesses Should Know
The VAT treatment of real estate in the UAE depends on the type of property involved.
π’ Commercial Properties
Sales and leases of commercial properties are subject to the standard 5% VAT rate.
π Residential Properties
Residential property supplies are generally exempt from VAT, helping ensure that buyers are not burdened with additional irrecoverable costs.
However, to support developers, the first supply of residential properties within three years of completion is zero-rated, allowing recovery of VAT on construction costs.
Understanding the correct VAT classification is critical for compliance and financial planning.
We support businesses from setup to full compliance.
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Source: Khaleej Times