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.