FAQ: Corporate Tax Registration Obligations for an Individual Owner of Residential and Commercial Property in Dubai

CONTEXT

An individual (natural person), a UAE resident, owns both residential apartments and commercial property in Dubai and does not hold a UAE trade licence personally in connection with their property activity. 

Several questions arise: 

Question 1. What is the key test for determining whether an individual property owner is subject to Corporate Tax?

A: The decisive criterion is the licence test: whether the individual personally holds a UAE trade licence in connection with their real estate activity.

Under Cabinet Decision No. 49 of 2023 and the FTA Corporate Tax Guide on Real Estate Investment for Natural Persons (CTGREI1, October 2024), rental income earned by a natural person qualifies as Real Estate Investment income and is entirely excluded from Corporate Tax — regardless of the number of properties owned, the value of those properties, or the amount of rental income received — provided that the activity is not required to be conducted under a licence held by that individual personally.

The following do not trigger Corporate Tax liability:

• Owning mul...