Serviced and holiday home rentals
I rent my flat as a short-stay holiday home. Is that still exempt?
The situation
Short-term holiday lets can be treated differently from long residential leases, because hotel-type accommodation is standard rated. The treatment depends on the facts and length of stay.
The law
- Art 46(2), Federal Decree-Law 8 of 2017: Residential leasing exempt, subject to exceptions in the Executive Regulation
What it means for you
Example: a flat let for stays of a few nights with hotel-like services may be standard rated, and income above AED 375,000 a year could require registration. Long leases of a year are exempt. Check the FTA guidance on residential buildings before deciding.
What to do
- Check typical length of stays and services.
- Read the FTA guidance on residential buildings.
- Estimate annual income.
- Register if the supplies are taxable and above the threshold.
Treatment of holiday homes depends on the Executive Regulation tests; confirm with current FTA guidance.
We can do this for youVAT on real estate: residential and commercial sales and leases, first supply zero rating, bare land and landlord registration: AED 1,500