Rent on residential properties is exempt from VAT. If it's leased out on a short-term basis to non-residents, then it falls under the commercial category.
If the occupant has no Emirates ID and is leasing less than six months, then it would be deemed commercial from a VAT perspective.
Can I sell my off-plan property in Dubai before completion, and how does the process work?
Is VAT charged on residential property purchases in Dubai?
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