UAE Tax Advisors Launch Real Estate VAT Guide
A tax advisory firm in the UAE has released a VAT guide aimed at real estate investors and homebuyers.
Dhruva Consultants created this industry guide to simplify complex VAT regulations and provide insights that align with Federal Tax Authority (FTA) guidelines.
As the UAE’s real estate sector continues to grow at an extraordinary pace, tax compliance has become a major challenge for developers, contractors, property managers, and homeowners.
UAE Real Estate Tax Guide:
Nimish Goel, GCC Leader at Dhruva, said, “With Dubai’s real estate transactions exceeding AED 761 billion ($207 billion) in 2024, a 36% increase from the previous year, and Abu Dhabi seeing a 24.2% rise in real estate transactions in 2024 compared to the previous year, the sector continues to be one of the most dynamic in the region.”
“However, as projects become larger and more complex, VAT issues also increase. Developers, contractors, and property owners need to take a more strategic approach to tax compliance,” he added.
Mismanaging VAT can result in unexpected tax liabilities, delays in project financing, and penalties. With billions of dirhams invested, getting VAT treatment right is not only about compliance but also about protecting financial margins and ensuring operational efficiency, according to Dhruva Consultants.
For master developers, the guide offers advice on VAT for phased developments, infrastructure cost allocations, and strategies for maximizing input VAT recovery.
Construction companies will find key advice on managing VAT for advance payments, handling contract changes, and addressing the tax implications of project delays.
Property managers and owners will gain clarity on tax treatments for leasing, service charge invoicing, and joint ownership agreements, ensuring compliance while improving financial efficiency.
