Dubai rental property: tax and records for owners
A property manager may transfer rent to the owner after deducting its fee. The bank statement shows the net transfer. A tax review also needs the lease terms, gross income and payment dates. This guide explains how to organise the records for a Dubai property with a connection to both Russia and the UAE.
Start with two questions. Who earns the rent under the contract, and does that person need a UAE licence for the activity? The answers tell you whose tax residence to review, which rules apply and how to reconcile payments handled by a manager.
How the rental arrangement affects the UAE review
An individual lets their own property
Income from an individual’s UAE real estate investment can fall outside Corporate Tax when the owner’s letting activity is conducted without a licence and does not require one. The FTA treats Ejari as tenancy registration. If you use a manager, confirm whether it acts on the owner’s behalf and who is entitled to the rent. The manager’s own licence does not determine the owner’s tax treatment by itself. FTA guide to real estate investment by natural persons. Ejari tenancy registration.
The property operates as a Holiday Home
Dubai’s Department of Economy and Tourism has a permit process for Holiday Homes. The FTA guide treats a permit for an individual to operate a holiday home as an example of a relevant licence for Corporate Tax purposes. Check who holds the permit and who operates the property. Where a company rents the property from its owner for a fixed amount and hosts guests in its own name, review the owner’s lease and the operator’s activity separately. DET Holiday Homes permit service.
A company owns the property
Review Corporate Tax at company level. The exclusion for an individual’s investment activity does not apply to a company. UAE rental income can create a Corporate Tax registration obligation for a foreign legal entity. Review any distributions to the shareholder and the supporting tax records separately. UAE Cabinet Decision No. 35 of 2025.
What Russian tax residents should check
Article 6 of the Russia–UAE treaty allows the country where real estate is located to tax rental income. For property in Dubai, that country is the UAE. Russian domestic rules also cover foreign-source income earned by Russian tax residents, including rent from property abroad. An individual earning that income should check the obligation to report it on a Russian 3-NDFL return. Russia–UAE treaty, Article 6. Russian Tax Code, Article 208. Russian Federal Tax Service guidance on foreign-source income.
Article 23 provides a credit for tax on the same income, subject to the applicable conditions and the residence-country limit. If no UAE tax was paid on the rent, there is no UAE tax amount to credit for that rental income. Management fees and building service charges are property costs. Check the rules for tax and credits separately. Read the foreign tax credit guide.
Record the amount in AED, the date income was received and the supporting record for each payment. For Russian personal income tax, the general rule is to convert foreign-currency income to roubles at the Bank of Russia’s official rate on that date. If a manager collects rent, check the lease, management agreement and statements to establish the relevant receipt date. Russian Tax Code, Article 210.
Worked rent reconciliation in AED
Over the year, the manager collects AED 96,000 from the tenant and deducts an AED 9,600 fee. The owner pays AED 12,000 in property costs separately. Assume the rent is paid in full and there are no other deductions. If the lease provides for a refundable deposit, track it separately with receipt and return dates.
| Item | Amount, AED | Reconciliation note |
|---|---|---|
| Rent collected by the manager | 96,000 | Lease and manager’s statement |
| Management fee | 9,600 | Deducted from the rent |
| Transfer to the owner | 86,400 | Match to the bank statement |
| Property costs paid by the owner | 12,000 | Paid separately |
| Pre-tax cash result | 74,400 | 86,400 − 12,000 |
The table shows the cash result. For a tax calculation, share the agreements, manager’s reports and bank statements with your adviser so they can establish the income amount, receipt date and any allowable deductions. Keep separate evidence of any tax paid or withheld.
Records to keep for each property
- Property and parties. Title deed, ownership shares, rental income recipient and tax residence records for the relevant period.
- Contracts and permits. Lease and Ejari where applicable. For Holiday Homes, retain the permit and operator details. Keep the management agreement and evidence of the manager’s authority.
- Payment records. Rent schedule, manager’s statements, bank statements, fees, expenses and deposit movements.
- Tax records. Receipt dates, currency and exchange rate, relevant returns and evidence of tax paid or withheld where applicable.
Rental receipts and costs tracker
The CSV includes a worked example and a blank row. Use one row per payment to link it to a manager’s report, bank statement and tax period.
Download the rental tracker (CSV)Frequently asked questions
Is a bank statement showing the net transfer enough?
Add the management statement and agreement. Together they show the rent before deductions, the fee, any deposit and the payment dates.
How do I review residence if the owner lives in both countries?
Gather records for the relevant year and check the domestic and treaty criteria. See the tax residence records checklist.
How NG Consulting can help
We reconcile management statements to bank receipts, calculate the property’s cash result and prepare questions for your tax adviser. For an initial consultation, gather the lease, a management statement and a bank statement covering the same period.
Discuss your rental figures →Review date
The rules were reviewed on 12 November 2026. Tax treatment depends on the owner, rental arrangement, residence and period.