Do I pay VAT or tax on short-term rental income in Dubai?
There is no personal income tax on rental earnings, but short-term holiday-home income is a taxable supply for VAT. Register with the Federal Tax Authority and charge 5% VAT once turnover passes AED 375,000 in 12 months (voluntary from AED 187,500). If you operate through a company, profits above AED 375,000 may also face 9% corporate tax. Long-term residential leases stay VAT-exempt.
Rules and eligibility criteria change — confirm the current position with the relevant authority before acting. This is general information, not legal advice.
Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.
