Accounting for Real Estate Businesses
Developers, brokerages, property managers and investment companies: we get the VAT treatment of every property right, recognise revenue properly, and keep Corporate Tax positions clear.
Real estate is where VAT mistakes are most expensive. One misclassified sale or lease changes the VAT charged, the input VAT you can recover, and often the price agreed with the buyer.
We work with brokerages, property management companies and property-holding companies to keep each transaction's tax treatment clear, and to give owners accounts that reflect what the portfolio actually earns.
Property VAT at a glance
| Supply | Usual VAT treatment |
|---|---|
| First sale or lease of a new residential building, within 3 years of completion | Zero-rated (0%) |
| Later sales and leases of residential property | Exempt |
| Bare land | Exempt |
| Commercial property sales and leases | Standard-rated (5%) |
| Brokerage and property management fees | Standard-rated (5%) |
Each case depends on the facts. Mixed-use buildings, serviced apartments and partly residential portfolios need careful analysis, especially for input VAT recovery.
What we do for you
Property VAT analysis
Each sale, lease and fee classified as zero-rated, exempt or standard-rated, with input VAT apportioned correctly.
Revenue recognition
Off-plan and project revenue recognised under IFRS 15, with contract balances tracked.
Brokerage accounting
Commission income, agent splits and listing costs recorded and reconciled.
Property management
Service charges, owner funds and tenant deposits accounted for separately and transparently.
Corporate Tax
Corporate Tax positions for property companies, including free zone property rules and related-party rents.
Portfolio reporting
Yield, occupancy and cash flow by property in a monthly owner pack.
How we work with you
Classify
Every property and income stream classified for VAT and Corporate Tax.
Set up
Project, property and owner-level tracking configured.
Reconcile
Collections, deposits and service charges reconciled monthly.
Report
VAT returns, project accounts and portfolio reporting.
Built for businesses like yours
Real estate brokerages
Commission accounting, agent payouts and VAT on fees.
Property management companies
Owner funds, service charges and deposits handled properly.
Property-holding companies
Rental income, apportionment and Corporate Tax.
Small developers
Project accounting and revenue recognition.
Partner-led chartered accountants in Dubai
Years in chartered practice
Big 4-trained Chartered Accountant partners on every engagement.
Businesses served
From solo founders to multinational groups across the UAE.
Partner response time
Direct WhatsApp access to a qualified CA partner, not a junior.
Frequently asked questions
Is VAT charged on residential property in the UAE?
The first supply of a new residential building within three years of completion is zero-rated. Subsequent residential sales and leases are generally exempt from VAT.
Is VAT charged on commercial property?
Yes. Sales and leases of commercial property are generally standard-rated at 5%.
Do individuals pay Corporate Tax on rental income?
Real estate investment income earned by an individual without a business licence is generally outside the scope of Corporate Tax. Companies and licensed businesses holding property are within scope.
Can a property company recover input VAT?
Input VAT related to zero-rated and standard-rated supplies is generally recoverable, while input VAT related to exempt supplies is not, so mixed portfolios need apportionment.
Talk to a partner about your situation
A free 15-minute call with a Big 4-trained Chartered Accountant. Fixed fees, no obligation.
General information based on UAE law and FTA guidance as of November 2026, not tax advice. Requirements depend on your facts; verify with the FTA or a qualified adviser before acting.