Off-plan revenue, escrow accounts & RERA compliance
Accounting Services for Real Estate in Dubai
Real estate accounting in Dubai carries specific rules around off-plan revenue recognition, RERA escrow account compliance, and project-based cost allocation that a standard trading-company chart of accounts simply doesn't handle.
What's different about real estate accounting
Most businesses in this sector rely on the same core services: bookkeeping, VAT return filing, the annual corporate tax return and the statutory audit.
Accounting services built for real estate
Accounting for developers, brokers and property investors
Real estate businesses in the UAE range from developers selling off-plan through escrow accounts, to brokers earning commissions, to companies holding rental portfolios. Each model has different accounting and tax rules: revenue recognition over the construction period, escrow reconciliations, investment property valuation, and commission and rental income cut-off.
| Developers | Off-plan revenue under IFRS 15, escrow account reconciliations and project cost tracking |
| Investment property | IAS 40 measurement, valuations and rental income accounting |
| Brokerage | Commission revenue, agent payouts and client deposits |
| Leasing | Tenant ledgers, service charges and IFRS 16 for leased assets |
| Financing | Mortgage and project finance covenant reporting |
| Year-end | Audited IFRS statements and corporate tax return |
VAT and corporate tax for real estate
The first supply of a new residential building within three years of completion can be zero-rated; later residential sales and leases are exempt; commercial property sales and leases are standard-rated at 5%; bare land is exempt. Mixed-use buildings need apportionment, and exempt residential activity restricts input VAT recovery.
For corporate tax, individuals earning rental income from property they own personally are generally not subject to corporate tax unless the activity requires a licence, while companies are taxed on rental income and property gains. Companies holding investment property at fair value can elect the realisation basis so that unrealised gains are not taxed until disposal.
Related services for real estate businesses
Related guides from our team
Practical explanations of the rules behind this service, written by our chartered accountants.
Questions from real estate owners
Is VAT charged on all property sales in the UAE?+
No — residential property sales are generally exempt or zero-rated in specific circumstances, while commercial property is typically standard-rated. This needs checking against your specific transaction type.
How does escrow accounting affect our reported cash position?+
Escrow-held funds are restricted and shouldn't be treated as freely available cash in your management reporting — this distinction matters for accurate cash flow visibility.
Do you work with property management companies too, not just developers?+
Yes — service charge and owners' association accounting for completed developments is a distinct but related service we also handle.
How much of the escrow balance can a developer withdraw at each milestone?+
RERA caps each milestone withdrawal at 20% of the total project escrow balance, released once an approved auditor confirms the construction milestone is genuinely met — this is designed specifically to prevent front-loading cash extraction, and reconciling against it accurately protects both the developer and the audit relationship.
Is residential rent subject to VAT in the UAE?+
Residential leases are generally exempt; commercial leases are standard-rated at 5%.
Is the sale of a new apartment zero-rated?+
The first supply of a new residential building within three years of completion can be zero-rated.
Do individuals pay corporate tax on rental income?+
Generally not, if the property is held personally and no licence is required for the activity.
Can a property company avoid tax on unrealised revaluation gains?+
Yes, by electing the realisation basis, which defers tax until the property is sold.
First review is free, within 24 hours.
Running a real estate business and tired of generic bookkeeping?
Tell us your current setup and where the reporting breaks down — we'll scope a fixed monthly fee built around how your business actually earns revenue.