UAE Real Estate: 7 June Deals Offering Strong Tax Incentives in 2025

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The UAE’s real estate market in June 2025, with AED 893 billion ($243 billion) in 2024 transactions and 7-11% rental yields, continues to attract American and global investors, with Dubai alone recording AED 66.8 billion ($18.2 billion) in May 2025 sales across 18,700 deals.

Freehold areas like Dubai Marina, Al Marjan Island, and Jumeirah Village Circle (JVC) offer high returns, bolstered by a tax framework including 9% corporate tax (Federal Decree-Law No. 47 of 2022), 5% VAT (Federal Decree-Law No. 8 of 2017), and no personal income tax.

June 2025 introduces seven property deals across the UAE with compelling tax incentives, ensuring compliance with Federal Tax Authority (CTA, renamed from FTA in 2024) regulations while maximizing ROI for investors. Below are the deals, their tax benefits, and actionable steps.

1. 105 Residences by Kamdar Developments (JVC, Dubai)

Overview: Launched in June 2025, 105 Residences offers studio, 1-, and 2-bedroom apartments starting at AED 660,000 ($179,600), with a 50/50 payment plan and Q2 2027 handover. Located in JVC, it features fitness centers, pools, and retail, delivering 7-9% yields, 20 minutes from Dubai Marina.
Tax Incentives: Secondary sales are VAT-exempt, saving 5% (AED 33,000 on AED 660,000). Long-term leases (over six months) are VAT-exempt, saving 5% (e.g., AED 3,500 on AED 70,000 rent). Individual investors avoid 9% corporate tax on rental income.
Action: Verify VAT-exempt status with RERA-registered agents, structure leases to exceed six months, and retain seven-year records for CTA audits.

2. HAYAT by Dubai South Properties (Dubai South, Dubai)

Overview: HAYAT, a June 2025 launch in Dubai South’s Golf District, offers 3- to 5-bedroom townhouses starting at AED 3.4 million ($925,000), with a 60/40 payment plan and Q2 2028 handover. Near Al Maktoum International Airport (10 minutes), it yields 6-8% with 15-25% appreciation by 2030.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 10,000 on AED 200,000 rent). Corporate investors deduct development costs (e.g., AED 27,000 saved on AED 300,000 expenses against 9% tax). Qualifying Free Zone Persons (QFZPs) in Dubai South Free Zone enjoy 0% corporate tax.
Action: Establish a QFZP, meet substance requirements (e.g., local office, AED 50,000 staff costs), and consult CTA advisors for deductions.

3. Al Zorah Villas by Al Zorah Development Company (Al Zorah, Ajman)

Overview: A June 2025 luxury launch, Al Zorah Villas offers 4- and 5-bedroom villas starting at AED 2.5 million ($680,000), with a 70/30 payment plan and Q4 2027 handover. With golf courses and waterfront views, it yields 5-6%, 25 minutes from Dubai International Airport.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 7,500 on AED 150,000 rent). Corporate investors deduct management costs (e.g., AED 9,000 on AED 100,000 expenses). Small investors (revenue below AED 3 million) qualify for 0% corporate tax until 2026.
Action: Confirm Small Business Relief eligibility, use RERA-registered managers, and maintain records for CTA compliance.

4. Masaar by Arada (Al Suyoh, Sharjah)

Overview: Masaar, launched in June 2025, offers smart villas and townhouses starting at AED 1.85 million ($503,200), with a 60/40 payment plan and Q2 2026 handover. Located near Tilal City (5 minutes from Dubai), it delivers 7-8% yields with eco-friendly designs.
Tax Incentives: Secondary sales are VAT-exempt, saving 5% (AED 92,500 on AED 1.85 million). VAT-exempt leases save 5% (e.g., AED 6,000 on AED 120,000 rent). Individual investors avoid corporate tax.
Action: Verify property status with RERA agents, structure leases for VAT exemption, and retain records for CTA audits.

5. Yas Acres by Aldar Properties (Yas Island, Abu Dhabi)

Overview: A June 2025 off-plan launch, Yas Acres offers 3- to 6-bedroom villas starting at AED 4 million ($1.09 million), with a 50/50 payment plan and Q3 2027 handover. With golf courses and marinas, it yields 6.5-7%, 15 minutes from Abu Dhabi International Airport.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 10,000 on AED 200,000 rent). U.S.-UAE DTA credits offset U.S. taxes (21% corporate, up to 37% individual) for American investors, preserving 10-15% appreciation.
Action: File IRS Form 1118 for DTA credits, use ADRE-registered brokers, and maintain lease records for CTA compliance.

6. Barajeel Towers by Green Group (Al Nuaimiya, Ajman)

Overview: Barajeel Towers, a June 2025 launch, offers studio and 1-bedroom apartments starting at AED 200,000 ($54,400), with a 10/90 payment plan and Q4 2026 handover. Targeting young professionals, it yields 8-9%, 20 minutes from Sharjah International Airport.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 900 on AED 18,000 rent). Small investors qualify for 0% corporate tax until 2026. VAT-registered investors recover 5% input VAT on furnishing costs (e.g., AED 5,000 on AED 100,000).
Action: Register for VAT if needed, confirm developer tax status, and use RERA agents for compliance.

7. Al Marjan Resort by Marjan (Al Marjan Island, Ras Al Khaimah)

Overview: Launched in June 2025, Al Marjan Resort offers apartments starting at AED 585,000 ($159,200) and villas up to AED 30 million ($8.16 million), with a 60/40 payment plan and Q3 2028 handover. Tied to the Wynn Resort, it yields 8-9%, 45 minutes from Dubai.
Tax Incentives: QFZPs in RAKEZ enjoy 0% corporate tax on rental income, saving 9% (e.g., AED 27,000 on AED 300,000 rent). VAT-exempt leases save 5% (e.g., AED 15,000 on AED 300,000 rent).
Action: Establish a QFZP in RAKEZ, meet substance requirements, and consult CTA advisors for tax filings.

Additional Tax Tools for American Investors

U.S.-UAE DTA: Corporate investors credit UAE taxes against U.S. tax liability via IRS Form 1118, enhancing returns.
Zakat for Muslim Investors: Muslim Americans pay 2.5% Zakat on rental income (e.g., AED 2,000 on AED 80,000 rent), not property value. Consult Islamic scholars for accuracy.
VAT Recovery: VAT-registered investors recover 5% input VAT on costs like fit-outs (e.g., AED 25,000 on AED 500,000), boosting cash flow.

Why These Deals Matter

These deals align with the UAE’s 5-20% price growth in 2024, driven by 19 million annual visitors and a 5% population increase. Q1 2025 saw AED 239 billion ($65 billion) in transactions, with 63% off-plan sales and 45% foreign buyer demand. Freehold policies, Golden Visas (AED 2 million for 10-year residency), and proximity to key airports (10-25 minutes) enhance appeal. Projects like HAYAT and Masaar cater to affordability, while Al Marjan Resort targets luxury investors.

Market Outlook and Challenges

June 2025 projects 5-8% price growth, with Al Marjan Island at 15-25%, but oversupply risks (41,000 Dubai units) and a potential 10-15% correction by 2026 loom. The DMTT’s 15% rate for multinationals and stricter AML/KYC rules increase costs. Non-compliance with CTA filings (nine-month corporate tax, 28-day VAT deadlines) risks penalties up to AED 10,000. RERA/ADRE-registered agents and CTA consultants are essential for compliance.

Conclusion

The seven June 2025 deals—105 Residences, HAYAT, Al Zorah Villas, Masaar, Yas Acres, Barajeel Towers, and Al Marjan Resort—offer 5-9% yields and strong tax incentives like VAT exemptions, QFZP benefits, and DTA credits. American investors can maximize ROI by leveraging these incentives and ensuring compliance, driving wealth creation in Dubai, Ajman, Sharjah, Abu Dhabi, and Ras Al Khaimah’s dynamic real estate market. Real Estate