Accounting, VAT and Corporate Tax Services for UAE real estate businesses

Real estate industry

Accounting, VAT and Corporate Tax Services for UAE Real Estate Businesses

Broker commissions, rental income, escrow accounts and mixed VAT treatments all reconciled into one clear set of books, built for how UAE developers, brokers and property managers actually operate.

How we account for your real estate business

Income

Commissions · rentals · sales

Reconciliation

Escrow · bank · agent payouts

Accounting

Revenue · VAT split · service charges

Compliance

VAT · Corporate Tax · RERA

Awards

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1000+

1000+ Active Clients

30+

Industries Served

94%

Client Renewal Rate

35+

Years of Experience

300+

Experts Globally

Understanding real estate accounting

Real estate accounting isn't ordinary accounting

Property transactions mix residential and commercial VAT treatments, broker commissions and escrow funds in a single portfolio. Each needs to be recorded and reconciled correctly before VAT and Corporate Tax can be filed.

Mixed VAT treatment

Residential leasing is generally VAT-exempt, new residential sales are zero-rated, and commercial property and brokerage fees are standard-rated, all in the same book of accounts.

Commission and agent splits

Broker commissions need to be tracked by deal and by agent before payouts and VAT can be calculated correctly.

Escrow and trust accounts

Landlord, tenant and owners association funds sitting in escrow must stay clearly separated from company cash.

RERA and service charge reporting

Owners associations and property managers face specific reporting requirements on top of standard VAT and Corporate Tax filing.

Off-plan and development accounting

Revenue on off-plan sales and development projects needs to be recognised against project milestones, not the full sale price upfront.

Rental income by property

Investors and property managers need income and expenses tracked property by property to see true portfolio returns.

Where the numbers get complicated

From deal agreed to accounting entry

A single property deal touches the buyer, seller, broker, escrow agent and the bank before it reaches your accounts. Every step in this sequence is a place where commission, VAT and payouts can drift apart.

Sale or lease agreed

Funds received into escrow

Buyer · landlord · tenant deposits

Commission earned

Broker · agency split

VAT applied to commission

Agent payout processed

Accounting records

VAT & Corporate Tax filed

Built from these records

Where it usually breaks: the highlighted steps above are where most real estate businesses lose track, escrow funds get mixed with operating cash, commission is booked gross without the correct VAT split, and agent payouts don’t reconcile back to the original deal.

✓

How BCL fixes it

We reconcile escrow movements, commission and agent payouts against every deal each month, so your VAT return and Corporate Tax filing are always built on numbers that tie back to the original transaction.

What's included

Our real estate accounting services

Six service pillars, built around how commission, rental and development income actually move through your business.

Real estate bookkeeping & reconciliation

Commission tracking by deal & agentRental income tracking by propertyBank reconciliationService charge accounting

Escrow & RERA-compliant accounting

Escrow account reconciliationOwners association reportingTrust account segregationDeposit & security fund tracking

Commission & brokerage accounting

Agent split calculationDeal-based revenue recognitionCommission VAT treatmentPayout reconciliation

UAE VAT compliance

Residential vs commercial VAT treatmentOff-plan & zero-rated salesBrokerage fee VATVAT return preparation & filing

UAE Corporate Tax

Corporate Tax registrationRental vs trading income treatmentSmall Business Relief assessmentRelated-party transaction review

Financial reporting

Property-wise profit & lossPortfolio ROI reportingCash flow reportingManagement reporting

Built for your model

Accounting built around your real estate model

Developers, brokers and property managers each create different accounting and VAT questions. We adjust the approach to the model, not the other way round.

Real estate developers

Off-plan sales, construction cost allocation and milestone-based revenue recognition.

Real estate brokers & agencies

Commission tracking by deal and agent, VAT on brokerage fees and payout reconciliation.

Property management companies

Service charges, maintenance costs and owners association reporting.

Owners associations & community management

RERA-compliant reporting and clear segregation of community funds.

Individual property investors

Property-wise rental income, expense allocation and portfolio ROI tracking.

Real estate holding companies

Property acquisition costs, rental income, financing expenses and property-level profitability tracked for clear portfolio reporting.

Know your real numbers

Commission isn't the same as net revenue

A brokerage fee looks straightforward until VAT, the agent split and referral costs come off the top. We build reporting that shows what the agency actually keeps from each deal.

Take a deal worth AED 2,000,000 with a 2% commission of AED 40,000. VAT of AED 2,000 is due on that commission, the agent’s split takes out AED 20,000, and a referral fee accounts for a further AED 5,000. What’s left, AED 13,000, is the agency’s actual net revenue from the deal, less than a third of the headline commission. Most agencies only see the AED 40,000. We make sure you see the AED 13,000.

Illustrative example, not actual client figures

How it works

How BCL manages your real estate accounting

01

Collect

We collect sales agreements, tenancy contracts, escrow statements and bank data.

02

Reconcile

We reconcile commission, rental income and escrow movements against bank transactions and agent payouts.

03

Record

We accurately record revenue, agent splits, service charges and other expenses.

04

Comply

We handle applicable VAT, Corporate Tax and RERA reporting requirements.

05

Report

You receive accurate financial statements and property or deal-level management reports.

See it in practice

From property deal to accounting entry

This is what commission and VAT reconciliation actually look like for a single sale, worked through step by step.

Net agency revenue 13,000

Agent split 20,000

Referral fee 5,000

VAT to the FTA 2,000

Reconciled to the deal

Works with your stack

Platforms we reconcile with

Why UAE real estate businesses choose BCL

One firm for accounting, VAT, tax and reporting

Real estate accounting expertise

Accounting processes designed around commission, rental income and escrow funds, not generic bookkeeping.

Escrow & RERA-aware reconciliation

Escrow movements, service charges and owners association funds reconciled and kept clearly separated.

UAE VAT & Corporate Tax

Mixed residential and commercial VAT treatment handled correctly, alongside Corporate Tax compliance.

Clear property-level reporting

Accurate profit and loss, portfolio ROI and management reports, by property and by deal.

Common Questions

Frequently Asked Questions

Do you separate agency fees from client media spend?

Yes. We apply the correct VAT treatment for each transaction, residential leasing is generally exempt, new residential sales are zero-rated within the first three years, and commercial property and brokerage fees are standard-rated.

How is VAT charged on broker commission?

Broker commission is standard-rated at 5% where the broker is VAT-registered. We calculate VAT on the commission, reconcile it against the deal, and include it in your VAT return.

Can you track commission by agent and by deal?

Yes. We record commission income and agent splits deal by deal, so payouts, VAT and net agency revenue reconcile back to the original transaction.

Do you manage escrow and RERA-related accounting?

Yes. We reconcile escrow account movements and help developers and property managers keep landlord, tenant and owners association funds clearly separated for RERA and audit purposes.

Does Corporate Tax apply to my real estate business?

Corporate Tax generally applies to real estate businesses such as development, brokerage and property management. Personal rental income earned by individuals is usually excluded, but this depends on your specific structure, which we assess before registration.

How do you account for off-plan property sales?

Off-plan revenue is generally recognised against project milestones and construction progress rather than the full sale price on signing, in line with the applicable accounting standards.

Can you account for property management and service charges?

Yes. We track service charges, maintenance costs and owners association funds separately from your company’s own operating income and expenses.

Do you work with individual property investors as well as companies?

Yes. We offer property-wise rental income and expense tracking for individual investors, alongside full accounting for developers, brokers and property managers.

How do you handle mixed portfolios of residential and commercial property?

We maintain property-wise accounts so each unit’s VAT treatment, income and expenses are tracked separately, then consolidated into one set of management reports.

Do you work with the accounting software I already use?

We work with Xero, QuickBooks, Zoho Books and similar cloud platforms, and can set one up if you’re not currently using any.

How often will I receive financial reports?

Monthly as standard, covering profit and loss, cash flow and property-level performance, with more frequent reporting available for larger portfolios.

Looking for an accounting partner who understands real estate?

From commission and escrow accounts to VAT, Corporate Tax and RERA reporting, let our team handle the accounting behind your real estate business.