# How to claim a VAT refund on new residential properties in the UAE

> Learn how to claim a VAT refund on new residential properties in the UAE. Covers eligibility, required documents, FTA process, and common pitfalls.

Source: https://einvoicedirect.ae/uae-vat/vat-refund-uae-new-residential-properties  
Last updated: 2026-06-05  
Publisher: EInvoice Direct (Massive FZCO), UAE e-invoicing software.

## What is a VAT refund on new residential properties in the UAE?

A VAT refund on new residential properties in the UAE is a mechanism that allows UAE nationals to recover the 5% Value Added Tax (VAT) they paid on the construction or purchase of a new home for personal use. The Federal Tax Authority (FTA) administers this refund under [Federal Decree-Law 8 of 2017](https://tax.gov.ae) and its executive regulations. It exists because residential property for personal living is treated as an exempt or zero-rated supply in many scenarios, yet construction costs carry VAT.

This refund is separate from the [VAT refund available to UAE businesses](https://einvoicedirect.ae/uae-vat/vat-refund-uae-business) and the [VAT refund scheme for tourists](https://einvoicedirect.ae/uae-vat/vat-refund-uae-tourists). Understanding the rules is important for anyone building or buying a newly constructed residence in the UAE. For broader context on how VAT works in the country, see our [UAE VAT](https://einvoicedirect.ae/uae-vat) hub.

## Who qualifies for this VAT refund?

Not every property buyer can claim a refund. The FTA sets strict eligibility criteria. Meeting all of them is mandatory before you submit an application.

### Eligibility criteria at a glance

| Criterion | Requirement |
| --- | --- |
| Nationality | Applicant must be a UAE national (citizen) |
| Property type | Newly constructed residential building or villa |
| Purpose | Used as the applicant's or the applicant's family's residence, not for investment or rental |
| VAT paid | VAT must have been charged by a VAT-registered supplier on construction-related goods and services |
| Time limit | Application must be filed within 12 months of the building's completion date |
| Registration status | The applicant does not need to be VAT-registered |

### Who does not qualify?

Non-UAE nationals, including residents holding a visa, are not eligible. Properties purchased for commercial rental, resale, or investment do not qualify either. Renovations or extensions to existing buildings are also excluded. Only costs related to a new build count.

If the property is partially used for business purposes, the refund applies only to the residential portion. Mixed-use buildings require careful apportionment.

## Which costs are refundable?

The refund covers VAT paid on goods and services directly related to constructing the new residence. Not every expense qualifies.

### Eligible expenses

- Contractor fees for building the structure

- Architect and engineering consultancy fees

- Building materials purchased from VAT-registered suppliers

- Electrical, plumbing, and HVAC installation

- Landscaping that forms part of the original construction contract

- Interior fit-out costs included in the initial build scope

### Ineligible expenses

- Furniture and movable appliances

- Land purchase costs (bare land is exempt from VAT)

- Maintenance or repair work after completion

- Professional fees unrelated to construction, such as legal or brokerage fees

- Any costs where the supplier is not VAT-registered or did not charge VAT

Keep every tax invoice. The FTA will reject claims that lack proper documentation.

## Step-by-step process to file the refund

The FTA handles the entire process through its online portal. There is no paper-based option. Below is the typical workflow.

### Step 1: Gather documents

Before starting the application, collect the following:

- Copy of your Emirates ID and UAE passport

- Title deed or Affection Plan (Oqood for off-plan) showing ownership

- Building completion certificate issued by the relevant municipality

- All original tax invoices from VAT-registered suppliers, each showing the supplier's Tax Registration Number (TRN)

- Proof of payment for each invoice (bank statements or receipts)

- A summary schedule listing every invoice, supplier TRN, date, amount, and VAT charged

### Step 2: Create or log in to your FTA account

Visit the [FTA e-Services portal](https://tax.gov.ae). If you do not have an account, register as an individual. You do not need a TRN to apply for this refund.

### Step 3: Submit the refund application

Navigate to the VAT refund section for UAE nationals on new residences. Fill in the property details, upload all supporting documents, and enter the total VAT amount claimed. Double-check every figure against your invoices.

### Step 4: FTA review

The FTA reviews the application. Processing typically takes several weeks. The authority may request additional documents or clarifications. Respond promptly to avoid delays.

### Step 5: Receive the refund

If approved, the FTA transfers the refund to the bank account you specified. If partially approved, the FTA explains which invoices were rejected and why.

## Common mistakes that delay or block refunds

Many applicants face rejection on their first attempt. Avoiding these errors saves time.

- **Missing or invalid tax invoices.** Every invoice must meet the FTA's tax invoice requirements, including the supplier's TRN, a description of the supply, and a separate VAT line.

- **Claiming ineligible costs.** Furniture, appliances, and post-completion maintenance are not covered. Including them triggers a review of the entire claim.

- **Filing after the deadline.** You have 12 months from the building completion date. Late applications are rejected outright.

- **Incorrect bank details.** The bank account must be in the applicant's name. Joint accounts may cause issues.

- **No completion certificate.** The municipality completion certificate proves the building is new and finished. Without it, the FTA cannot process the claim.

## How much VAT can you recover?

The UAE charges VAT at a standard rate of 5% on taxable supplies. The refund equals the total VAT correctly paid on eligible construction costs.

### Worked example

| Expense category | Cost before VAT (AED) | VAT at 5% (AED) | Refundable? |
| --- | --- | --- | --- |
| Main contractor | 1,500,000 | 75,000 | Yes |
| Architect fees | 120,000 | 6,000 | Yes |
| Electrical and plumbing | 200,000 | 10,000 | Yes |
| Landscaping (original build) | 80,000 | 4,000 | Yes |
| Furniture | 150,000 | 7,500 | No |
| Land purchase | 800,000 | 0 (exempt) | N/A |
| Total refundable VAT |  | 95,000 |  |

In this example, the UAE national recovers AED 95,000. The furniture VAT of AED 7,500 is excluded because movable items are not part of the building.

## Key deadlines and timelines

| Milestone | Deadline or timeframe |
| --- | --- |
| Building completion | Date on the municipality completion certificate |
| Refund application deadline | Within 12 months of completion |
| FTA processing time | Typically 20 business days, but may extend if documents are incomplete |
| Refund payment | Within 5 business days of approval, per FTA guidelines |

## Interaction with VAT registration and deregistration

This refund scheme is designed for individuals, not businesses. If you are a VAT-registered business that constructs residential property for sale, the input tax recovery rules differ. You would claim input tax through your regular VAT return instead.

If you are considering closing your VAT registration after a property transaction, read our guide on [VAT deregistration in the UAE](https://einvoicedirect.ae/uae-vat/vat-deregistration-uae). You may also need a [VAT clearance certificate](https://einvoicedirect.ae/uae-vat/vat-clearance-certificate-uae) before the FTA cancels your registration.

## Frequently asked questions

Below are answers to common questions about claiming a VAT refund on new residential properties in the UAE.

## Frequently asked questions

### Can expats claim a VAT refund on new residential properties in the UAE?

No. Only UAE nationals are eligible for this VAT refund. Expats and non-citizens cannot apply, regardless of their visa status or how long they have lived in the UAE. The scheme is limited to citizens building or purchasing a new home for personal residential use.

### What documents do I need for a UAE new residential property VAT refund?

You need your Emirates ID, UAE passport, property title deed, municipality building completion certificate, all original tax invoices from VAT-registered suppliers showing their TRN, proof of payment for each invoice, and a summary schedule of all invoices. Missing any document can delay or block the refund.

### How long does the FTA take to process a new residential property VAT refund?

The FTA typically processes applications within 20 business days. However, if documents are incomplete or the FTA requests additional information, the timeline can extend. Once approved, the refund is usually paid within 5 business days to the applicant's bank account.

### Is there a deadline to apply for a VAT refund on a new home in the UAE?

Yes. You must submit the refund application within 12 months of the building completion date shown on the municipality completion certificate. Late applications are not accepted by the FTA. Start gathering documents well before the deadline to avoid last-minute issues.

### Can I claim a VAT refund on renovations to an existing property?

No. The refund applies only to newly constructed residential buildings. Renovations, extensions, repairs, and maintenance work on existing properties are not eligible. The FTA requires a building completion certificate for a new structure as part of the application.

### Does the VAT refund cover furniture and appliances?

No. Furniture, movable appliances, and other items that are not permanently fixed to the building are excluded. The refund covers only goods and services directly related to constructing the new residence, such as contractor fees, building materials, and installation work.

### Do I need to be VAT-registered to claim this refund?

No. UAE nationals applying for this refund do not need to hold a VAT registration or a Tax Registration Number. The application is submitted through the FTA's e-Services portal as an individual. This is a separate process from business VAT refund claims.

### Can I claim a VAT refund if I plan to rent out the property later?

No. The property must be used as your personal residence or your family's residence at the time of application. Properties intended for commercial rental or investment purposes do not qualify. If the FTA discovers the property was rented out, the refund may be clawed back.


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