RERA-Licensed Property Advisor · Sales Manager, Property Junction International · BRN 80731 · Dubai

Do I pay VAT on commercial rent in Dubai?

Yes. Leasing commercial property in Dubai is standard-rated at 5% VAT, charged by the landlord on top of the rent, whereas residential rent is exempt. A landlord letting offices, shops or warehouses must register for VAT once taxable turnover exceeds the AED 375,000 threshold, then charge tenants 5% on rent and often on service charges too.