Accounting for Real Estate Services in UAE

At Virtual Accountants LLC, we provide specialized real estate accounting services in the UAE for property developers, real estate brokers, property management firms, community management companies, and investors. Accounting for real estate companies in UAE is not just basic bookkeeping – it’s about navigating complex regulations like RERA, managing escrow accounts, handling real estate VAT, and maintaining strict compliance. Our team of chartered accountants ensures your financial records are accurate, compliant, and audit-ready, so you can focus on closing deals and managing properties with confidence.

Accounting for real estate companies in UAE – common challenges

Real estate accounting in the UAE comes with industry-specific challenges that general accounting may not cover. Some common pain points include:

1. Strict RERA compliance: The Real Estate Regulatory Agency (RERA) imposes strict rules on developers and property companies – from mandatory project registration to maintaining escrow accounts and quarterly financial reporting. Non-compliance can lead to fines and project delays, making expert oversight crucial.
2. Escrow account management: Off-plan developers must safeguard buyers’ funds in RERA-approved escrow accounts, with withdrawals tied to construction milestones. Proper accounting ensures every dirham is tracked and used only for its intended project, as required by law.
3. Complex VAT rules: Real estate transactions face varied VAT treatments. For example, the sale or lease of residential property can be exempt or zero-rated, while commercial property deals incur 5% VAT. Incorrect VAT handling or documentation can result in hefty penalties from the Federal Tax Authority.
4. Project costing and budgeting: Real estate developers juggle multiple projects, each requiring separate cost tracking for land, construction, marketing, etc. Accurate allocation of expenses and budgets per project is vital to measure profitability and meet investor expectations.
5. Service charge accounting: Property and community managers in Dubai must prepare annual service charge budgets for shared facilities and get RERA approval. Transparent service charge accounting – tracking maintenance costs vs. collections – is mandatory to maintain trust with owners and comply with audits.
6. Revenue recognition: Real estate income isn’t straightforward – developers should recognize revenue based on project completion stages (percentage-of-completion), and property rental income or brokerage commissions have their own timing. Adhering to proper revenue recognition (e.g. IFRS 15) prevents overstating earnings and aligns with RERA’s requirements.

    

Our real estate accounting services

Virtual Accountants LLC offers end-to-end solutions tailored to the real estate sector. Our real estate accounting services cover all financial aspects of your property business, ensuring compliance and clarity:

1. Full-cycle bookkeeping and reporting: We handle daily real estate bookkeeping in Dubai and across the UAE – recording transactions, reconciling bank accounts, managing accounts payable/receivable, and producing monthly financial statements. Your ledgers will reflect each property’s performance accurately, and you’ll receive clear reports ready for management or audit review.
2. Project-based accounting for developers: Our team is experienced in accounting for real estate developers in UAE. We maintain separate books for each development project, track construction costs, allocate expenses by project, and ensure revenue recognition aligns with RERA’s percentage-of-completion guidelines. This gives developers clear insight into each project’s profitability while meeting regulatory mandates.
3. Property management accounting: We provide specialized property management accounting in Dubai and other Emirates, helping property managers and owners’ associations keep proper records. This includes rent collection and tracking, maintaining trust accounts for landlord funds, service charge accounting for communities (budgeting and reconciling service fee collections, and preparing required reports for RERA approvals.
4. Bookkeeping for real estate agents: We assist brokerages and independent agents with their finances. Our bookkeeping for real estate agents in Dubai covers commission tracking, expense recording (marketing, listing fees, office costs), and regular profit-and-loss statements. By outsourcing these tasks, agents can focus on closing deals while staying financially organized and fully compliant at tax time.
5. VAT and tax compliance: Real estate companies often face complicated VAT scenarios. We ensure correct VAT treatment on all your transactions – applying 5% VAT to taxable commercial property deals, zero-rating eligible first sales of new residential property, and adjusting for exempt transactions. Our team prepares and files your VAT returns on time, and keeps you prepared for upcoming corporate tax obligations with proper record-keeping of revenues and expenses.
6. Financial reporting and audit support: We deliver timely management reports (project-wise and consolidated) so you can make informed decisions. At year-end, we prepare financial statements in compliance with IFRS and assist in audits – whether it’s a statutory external audit or a RERA-required audit of escrow and service charge accounts. Our team compiles audit schedules and supporting documents to ensure your financials pass scrutiny smoothly.

    

Real Estate Developers

Typical accounting needs
Developers need project-wise accounting, escrow compliance, construction cost tracking, contractor payments, and correct revenue recognition for off-plan sales.

Our solution
We maintain separate books for each project, manage escrow ledgers, allocate costs accurately, and apply RERA-compliant percentage-of-completion revenue recognition, giving clear visibility into project profitability.

Property Management Companies & Owners’ Associations

Typical accounting needs
This includes rent and deposit tracking, service charge budgeting, vendor payments, reserve fund accounting, and audit-ready owner reporting.

Our solution
We manage trust accounts and service charge accounting, reconcile income and expenses, and prepare RERA-compliant reports and audit packs to ensure transparency and compliance.

Real Estate Brokers & Agents

Typical accounting needs
Brokers require commission tracking, expense recording, payroll and splits, VAT on brokerage fees, and cash flow monitoring.

Our solution
Our bookkeeping for real estate agents in Dubai tracks commissions by deal and agent, records expenses, handles VAT invoicing, and delivers clear monthly financial reports.

Real Estate Investors

Typical accounting needs
Investors need rental income tracking per property, expense allocation, ROI analysis, and tax-ready records.

Our solution
We maintain property-wise accounts to track income and expenses, calculate returns, and provide clear insights into portfolio performance.

How we work (4-step process)

We follow a clear 4-step process to onboard you and deliver our real estate accounting services smoothly:

1. Step 1 – Consultation: We start with a free consultation to understand your business (developer, agency, property manager, etc.), the number of properties or projects, and your specific pain points. This helps us tailor an accounting solution that fits your needs.
2. Step 2 – Onboarding & setup: Our team will gather the required documents and data (see checklist below), then set up your accounting system. We define your chart of accounts, configure project/property tracking, and establish processes for collecting financial data (invoices, receipts, bank info) on an ongoing basis.
3. Step 3 – Ongoing accounting: We handle your bookkeeping and accounting period-by-period. This includes recording all transactions (sales, purchases, rental receipts, expenses), reconciling bank and escrow accounts, and producing monthly or quarterly management reports. We keep you updated on key figures and immediately flag any anomalies or compliance issues.
4. Step 4 – Compliance & review: Before each statutory deadline (e.g. VAT return, audit), we compile the necessary reports and schedules. We assist with VAT filings and coordinate with external auditors or RERA reviewers as needed. We also hold regular review meetings to discuss your financial reports and incorporate any feedback, ensuring continuous improvement and no surprises.

    

What you need to prepare (documents & data checklist)

To get started quickly, here’s what you should prepare for us:

1. Company registrations: Your company trade license (and RERA registration certificate, if you’re a registered developer or broker). These help us understand your licensed activities and regulatory obligations.
2. Opening financials: Recent trial balance or financial statements, plus the last audited accounts (if available). This gives us a baseline for your books and insights into past accounting treatments.
3. Bank statements: At least 12 months of bank statements for all business bank accounts – including any dedicated escrow or trust accounts. We use these to reconcile transactions and ensure no income or expense is missed.
4. Sales & contracts data: A list of your properties or projects with key details. For developers: unit inventory, sales agreements, payment schedules for off-plan sales. For property managers: current leases, rent rolls, and security deposit records. For brokers: a log of closed deals and commission agreements.
5. Expense records: All purchase invoices and bills (supplier payments, contractor invoices, marketing fees, utility bills, staff payroll records, etc.). We will organize and record these to capture your operating costs and project expenses.
6. VAT records: Your VAT Registration Number (TRN) and copies of any filed VAT returns or VAT audit communications (if you have them). This helps us review past VAT treatment and ensure future filings are correct.
7. Accounting system export (if any): If you have been using an accounting software or spreadsheets, provide an export or backup. For example, a trial balance, general ledger, or list of outstanding receivables/payables. This data can accelerate our onboarding and ensure continuity.

    

Compliance notes

1. Real estate VAT: The UAE imposes VAT on many real estate transactions, but with special rules. Residential property sales are generally exempt, with the first sale of a new residential building zero-rated at 0%. In contrast, sales or leases of commercial properties are taxable at 5% VAT. It’s crucial to apply the correct VAT rate, issue proper tax invoices, and maintain supporting documents to avoid penalties.
2. Service charge regulations: In Dubai, any owners’ association or property management company managing shared areas must submit an annual service charge budget for RERA approval. All service charge collections and expenditures should be transparently accounted for, and a RERA-approved auditor must audit the service charge accounts yearly to ensure compliance. We help you implement systems to track these funds separately and meet all reporting obligations.

    

Record-keeping requirements: UAE law mandates that companies retain accounting records for a minimum of 5 years. For real estate businesses, the Federal Tax Authority extends record retention to 15 years because property transactions and warranties can span long periods. We implement organized digital record-keeping so every invoice, receipt, and contract is stored securely for future reference and compliance checks.