Short term accommodation activities

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Under the QFZP regime, income from 'Immovable Property' is only qualifying if it involves commercial property transactions with other Free Zone Persons. Short-term accommodation (ISIC 5510) primarily serves natural persons (Non-Free Zone Persons), and hospitality is not listed as a 'Qualifying Activity' under Article 2. Therefore, income is treated as taxable at 9% as it falls under Excluded Activities or non-qualifying revenue from immovable property.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3, Clause 1(g) and Article 2

Audit Red Flag

Artificial fragmentation of 'service fees' from 'room rates' to attempt to reclassify income as a Qualifying Activity (e.g., Head Office Services) rather than Excluded Immovable Property income.

1 licensable activity under this classification

Vacation Homes RentalExternal approval required

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