Building Your Dream Home? Get More Back with UAE VAT Refunds

The UAE’s Federal Tax Authority (FTA) has expanded the VAT refund scheme for UAE nationals building new homes, providing significant financial relief for families and supporting home ownership across the country.
Effective for all eligible applications submitted from 1 January 2026, the updated initiative broadens the range of construction-related expenses that qualify for VAT refunds. Newly eligible items include swimming pools, landscaping, fountains, smart home technologies, security systems, electronic doors, home gyms, game rooms, staff accommodation, and even complete home reconstruction projects.
The FTA estimates that the expanded programme will generate approximately Dh200 million in additional VAT savings for UAE citizens, with the average homeowner expected to save around Dh25,000 per claim. Total approved refund claims are projected to exceed Dh1 billion in 2026.
This initiative reflects the UAE leadership’s commitment to supporting families, enhancing quality of life, and reducing the financial burden of building a family home. Citizens are encouraged to explore the updated VAT refund programme and ensure all eligible expenses are included in their applications.
For more information, homeowners can attend FTA awareness sessions or access the updated digital VAT refund platform to review eligible categories and submit claims