Real estate activities

Under the framework of Ministerial Decision No. 229 of 2025, real estate activities are bifurcated. Income from 'Immovable Property' located in a Free Zone is Qualifying Income only if it is Commercial Property and the transaction is with other Free Zone Persons. Income from Residential Property or any property located in the Mainland is automatically excluded and taxed at 9%. Auditors will scrutinize the 'nature of use' certificates and Ejari records.

Audit Red Flag

Reclassifying income from residential real estate as commercial property income to exploit the 0% Qualifying Income rate.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.