Salaried expat with rental income

The situation

Salary is not business income. Rental income from real estate held as a personal investment, without needing a licence, is also outside Corporate Tax for individuals.

The law

• Cabinet Decision 49 of 2023: Wages, personal investment income and real estate investment income are excluded for individuals

What it means for you

You do not need Corporate Tax registration for these. VAT is separate: residential leasing is exempt, but commercial leasing is taxable and may need VAT registration above AED 375,000. Example: AED 30,000 salary a month plus AED 90,000 a year from a residential flat means no Corporate Tax and no VAT registration.

What to do

1. Confirm the flat is residential and personally held.
2. Keep the lease and Ejari.
3. Check VAT only if you lease commercial property.
4. Ask the India team about Indian tax on the rent if you are an Indian resident.

Related

• Non-resident company with a UAE permanent establishment
• One registration for several licences
• Penalty waiver for late registration
• Dormant company still needs to register
• Choosing the financial year at registration
• FTA query on a Corporate Tax registration