UAE REIT Taxation Guide

Key Insight from FTA Clarification (CTP005):

🔹 80% Rule for Corporate Investors
If a REIT is exempt, juridical (corporate) investors must include 80% of their proportionate share of immovable property income in their taxable income.
🔹 Applies from 1 Jan 2025
This treatment is applicable for tax periods starting on or after 1 January 2025.
🔹 What is “Immovable Property Income”?
It includes net realised profits from:
• Rental income
• Sale/disposal of UAE real estate
• Leasing, subleasing, or exploitation of property
🔹 Distributing vs Non-Distributing REITs
• If ≥80% income is distributed within 9 months → Tax triggered at time of distribution
• If not → Tax applies based on ownership period, even without distribution
🔹 Individuals? No Impact ✅
Natural persons are not required to include REIT income in taxable income — even if held as part of business.
🔹 No Double Taxation
Distributions received are excluded from taxable income (since already taxed via attribution).
🔹 Foreign Investors = Nexus Risk
Non-resident corporate investors may create a taxable presence (nexus) in the UAE depending on distribution patterns.

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