Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified United Arab Emirates tax professional before filing.
United Arab Emirates · United Arab Emirates · Short-term rental taxes
Short-Term Rental Taxes in the United Arab Emirates
Short-term rental taxes in the United Arab Emirates: no personal income tax, but licensed holiday-home income counts toward the AED 1 million Corporate Tax test, and VAT and emirate fees can apply.
The 30-Second Answer
- No personal income tax: the UAE does not tax individuals on their income, so the estimator on this page shows 0% income tax for an individual host. Short term rental tax in the United Arab Emirates comes instead from Corporate Tax (for larger or company-run operations), VAT and emirate-level tourism fees.
- A licensed holiday home is a business for UAE Corporate Tax: the FTA says income from a unit let under a holiday-home permit is not the tax-free "Real Estate Investment" exclusion. An individual only becomes a Taxable Person once total business turnover exceeds AED 1 million in a calendar year.
- Taxable Persons pay 0% on taxable income up to AED 375,000 and 9% above it; revenue of AED 3 million or less can qualify for Small Business Relief, now extended to tax periods ending by 31 December 2029.
- VAT (5%) registration is mandatory once taxable supplies pass AED 375,000 in 12 months, and holiday-home licensing is emirate-level — Dubai's DET permit (with the Tourism Dirham per room-night) or Abu Dhabi's DCT licence.
Deductions
What UAE STR Hosts Can Deduct
Deductions only matter once your holiday-home business is inside Corporate Tax. Below the AED 1 million turnover test there is no income tax for an individual to reduce — but tracking costs now keeps you ready if you cross it.
For Corporate Tax, taxable income starts from accounting net profit, so costs must be incurred wholly and exclusively for the business and supported by invoices. Where you also let units long-term (Real Estate Investment, excluded), apportion shared costs between the two — the FTA's own example uses property value.
Filing Calendar
Key Dates & Filing Calendar
For individuals, the Corporate Tax period is the calendar year. Registration, returns and VAT deadlines only bite once you cross the relevant thresholds.
Late Corporate Tax registration carries an administrative penalty of AED 10,000. A natural person who first crosses AED 1 million of business turnover in 2026 must register by 31 March 2027 and file the 2026 return by 30 September 2027.
Federal Tax Authority — Corporate Tax for natural persons and registration news (tax.gov.ae); u.ae — Filing VAT returns
Tax Treatment
Individual Host vs. Taxable Business: Where Do You Sit?
The UAE has no personal income tax, so the big question is whether your holiday-home activity has become a Corporate Tax business — and, if so, whether Small Business Relief takes the bill to zero.
Individual host below AED 1 million turnover
No income tax for most private owners
- No personal income tax on the rent — the estimator's 0% default reflects this.
- Holiday-home income still counts as business turnover; long-term leases with no licence are Real Estate Investment and are ignored in the AED 1 million test.
- No Corporate Tax registration needed while turnover stays at or below AED 1 million.
- VAT registration applies separately once taxable supplies exceed AED 375,000 in 12 months.
Total business turnover of AED 1 million or less in the calendar year
Corporate Tax business (companies, operators, larger hosts)
For companies and hosts above AED 1 million
- Register on EmaraTax and file an annual Corporate Tax return within nine months of year-end.
- Pay 0% on taxable income up to AED 375,000 and 9% on the excess (Cabinet Decision No. 116 of 2022).
- Revenue of AED 3 million or less can elect Small Business Relief for tax periods ending by 31 December 2029.
- Taxable income follows your accounting profit — keep books and invoices for at least seven years.
0% up to AED 375,000 of taxable income; 9% above. Small Business Relief if revenue is AED 3 million or less
Depreciation
Depreciation for UAE STR Properties
The UAE has no statutory tax depreciation tables. Once you are a Corporate Tax payer, depreciation follows the accounting standards used in your financial statements.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Apartment or villa used as a holiday home | Useful life under your accounting policy (IFRS) | Only relevant for Taxable Persons; land is not depreciated. |
| Furniture, appliances & fit-out | Useful life under your accounting policy (IFRS) | Holiday homes need frequent replacement — record each item with its invoice. |
| Any asset — individual below AED 1 million | No tax effect | No personal income tax, so there is nothing to deduct depreciation from. |
Individuals below the AED 1 million turnover test do not compute taxable income at all, so depreciation has no tax effect for them — but a fixed-asset register makes the step into Corporate Tax much easier.
There is no separate recapture tax. For a Taxable Person, a gain on selling a business property flows through accounting profit into taxable income; an individual's Real Estate Investment income, including from a sale, is excluded from Corporate Tax.
VAT, Corporate Tax & Tourism Fees
UAE Vacation Rental Taxes: Federal Rates and Emirate Fees
There is no federal occupancy tax or lodging tax in the UAE. The federal layer is VAT and Corporate Tax; per-night tourism fees are set by each emirate.
The bars compare the three federal percentages that can touch a holiday-home host. Emirate-level charges are listed in the table below because they are per-night or licence-based rather than percentages.
0% personal income tax · 5% VAT once registered · 9% Corporate Tax above AED 375,000
Ministry of Finance — Cabinet Decision No. 116 of 2022; FTA — VAT registration and Public Clarification VATP003 (tax.gov.ae); Dubai Executive Council Resolution No. 2 of 2014
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Dubai — Tourism Dirham | Permit holder collects per occupied room per night and pays DET through the Holiday Homes system | AED 10 (standard) or AED 15 (higher category) per room-night — a pass-through, not your income |
| Abu Dhabi — DCT holiday-home licence | Owner or operator licenses each unit with the Department of Culture and Tourism | Budget the licence and any DCT guest fees — confirm current charges with DCT |
| VAT on stays (if registered) | VAT-registered host or operator charges 5% and files with the FTA | Keep VAT out of turnover and reclaim input VAT on costs linked to taxable stays |
The FTA treats hotels, motels, bed-and-breakfasts and serviced apartments as outside the VAT exemption for residential buildings, so hotel-like stays are standard-rated at 5%. Whether a particular holiday-home letting is standard-rated or exempt depends on the facts — confirm with the FTA or a registered tax agent before you register or price.
Platforms
Airbnb Tax in the United Arab Emirates: Platforms and Reporting
No platform collects UAE VAT or emirate tourism fees on your behalf that we could verify — the permit holder charges and pays them.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | No UAE reporting duty we could verify — you self-report | No — the UAE is not on Airbnb's collect-and-remit list | Earnings and payout reports in your host account |
| Booking.com | No UAE reporting duty we could verify — you self-report | Not confirmed — the permit holder remains responsible | Reservation statements and invoices in the extranet |
| Vrbo | No UAE reporting duty we could verify — you self-report | Not confirmed — the permit holder remains responsible | Payout history in the owner dashboard |
| Direct bookings | You self-report | You charge VAT (if registered) and the emirate's tourism fee | Your own invoices and booking records |
Using Multiple Platforms?
The AED 1 million Corporate Tax test and the AED 375,000 VAT threshold are measured across all your business turnover — Airbnb, Booking.com, Vrbo and direct bookings combined. Add up every channel each month so you know when you cross a threshold.
DAC7 Does Not Apply in the UAE
DAC7 is an EU directive and the UAE is not an EU member, so it does not apply. We found no UAE law currently requiring Airbnb, Booking.com or Vrbo to report host earnings to the Federal Tax Authority. In practice, the data trail runs through the emirates instead: Dubai's DET holiday-home system records every permitted unit and guest check-in and bills the Tourism Dirham monthly. Report your income yourself once Corporate Tax or VAT applies.
Airbnb Help Center — Areas where Airbnb collects and remits tax (airbnb.com/help/article/2509); FTA Corporate Tax guide CTGREI1 (tax.gov.ae)
Illustrative P&L: A Holiday-Home Host Above AED 1 Million
Example for an individual letting several licensed holiday homes with AED 1,500,000 of annual turnover. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
Even with no personal income tax, you need records to prove which side of the AED 1 million and AED 375,000 thresholds you sit on.
| Keep | How long | Why |
|---|---|---|
| Monthly turnover by channel | At least 7 years after the tax period | Evidence for the AED 1 million Corporate Tax test and the AED 375,000 VAT threshold |
| Invoices for costs and fit-out | At least 7 years after the tax period | Supports deductions and depreciation once you are a Taxable Person |
| Holiday-home permits and licences | While you operate, and 7 years after | Shows which units are licensed business and which are Real Estate Investment |
| Tourism Dirham payment orders and receipts | While you operate, and 7 years after | Proves guest fees were passed through, not kept as income |
| Financial statements and Corporate Tax workings | At least 7 years after the tax period | The FTA requires Corporate Tax records to be kept for at least seven years |
Keep holiday-home income and long-term (Ejari) lease income in separate ledgers. The FTA treats them differently, and clean separation is the easiest way to show your Real Estate Investment income is excluded.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational summary based on UAE federal and emirate primary sources as of September 2026. Thresholds, reliefs and emirate fees change — confirm with the Federal Tax Authority, your emirate's tourism department and a registered tax agent.
- FTA — Real Estate Investment for Natural Persons (CTGREI1, Oct 2024) — Holiday homes under a DET permit are a licensed Business; Real Estate Investment excluded. tax.gov.ae/Datafolder/Files/Pdf/2024/Real-Estate-Investment-for-natural-persons-22-10-2024.pdf
- FTA — Corporate Tax basis for natural persons — AED 1 million turnover test; wages, personal investment and Real Estate Investment income excluded. tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/basis.of.taxation.natural.person.aspx
- FTA — Natural persons registration deadline — Register by 31 March of the following year; AED 10,000 late-registration penalty. tax.gov.ae/en/media.centre/News/fta.urges.natural.persons.to.register.for.corporate.tax.before.end.of.march.2025.to.avoid.administrative.penalties.aspx
- Ministry of Finance — Taxable income threshold (Cabinet Decision No. 116 of 2022) — 0% up to AED 375,000; 9% above. mof.gov.ae/en/news/ministry-of-finance-confirms-applicable-taxable-income-threshold-for-corporate-tax-abu-dhabi-uae/
- Ministry of Finance — Small Business Relief extended to 2029 — Ministerial Decision No. 131; revenue AED 3 million or less. mof.gov.ae/en/news/ministry-of-finance-announces-extension-of-small-business-relief-for-corporate-tax-purposes-until-31-december-2029/
- FTA — Registration for VAT — Mandatory threshold AED 375,000; voluntary AED 187,500. tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx
- FTA — Public Clarification VATP003 (residential vs. serviced property) — Hotels, motels, B&Bs and serviced apartments are not residential buildings for VAT. tax.gov.ae/DataFolder/Files/Pdf/03-Labour-Accomodation-residential-versus-serviced-property.pdf
- Dubai Executive Council Resolution No. 2 of 2014 — Tourism Dirham — Holiday homes: AED 10 or AED 15 per room per night. dlp.dubai.gov.ae/Legislation%20Reference/2014/Executive%20Council%20Resolution%20No.%20(2)%20of%202014.html
- DCT Abu Dhabi — Holiday home licensing — Owners and operators must license units with DCT. dct.gov.ae/en/media.centre/news/abu.dhabi.holiday.home.operators.reminded.to.obtain.licence.before.1st.august.aspx
Questions
Frequently Asked Questions — United Arab Emirates STR Taxes
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