Rental income from UAE property
I own two flats in Dubai and rent them out. Do I pay UAE tax?
The situation
Rental income from personally held residential property is outside Corporate Tax for individuals, and residential leases are VAT exempt.
The law
- Cabinet Decision 49 of 2023: Real estate investment income excluded for individuals
- Art 46(2), Federal Decree-Law 8 of 2017: Residential leases exempt
What it means for you
Example: AED 200,000 a year rent from two flats has no UAE income tax and no VAT. Commercial units are different for VAT. Indian residents may owe Indian tax on it; the India team handles that.
What to do
- Confirm both are residential.
- Keep leases and Ejari.
- No UAE filing for residential rent.
- Check Indian tax with the India team.
We can do this for youUAE tax residency certificate and personal tax position for expats: residency tests, TRC application and what the UAE does not tax: AED 3,250