In short
In Dubai, commercial rents are usually quoted in dirhams per square foot per year and paid with one or more cheques. Every commercial tenancy contract in Dubai must be registered with Ejari, the Dubai Land Department system, and commercial rent carries 5% VAT when the landlord is VAT-registered. A registered tenancy is also needed for your trade licence.
1. Work out the full cost
- Rent: AED per sq ft per year (use our commercial rent calculator for the monthly figure), and how many cheques the landlord wants.
- 5% VAT on commercial rent where the landlord is VAT-registered (residential rent is treated differently).
- Security deposit, agency fee if you use a broker, Ejari fees and any service charges.
- Ask whether any municipality or other fee is charged on the rent, and how it is billed.
2. Check the space suits your licence
Your trade licence activity must match the premises: a shop, office, clinic, restaurant or warehouse each needs suitable space, and free zones have their own rules and leasing. Confirm with the licensing authority (the Department of Economy and Tourism for mainland Dubai, or the free zone authority) before you sign.
3. Register the contract with Ejari
Every commercial and residential tenancy contract in Dubai must be registered with Ejari, run by the Real Estate Regulatory Agency (RERA) of the Dubai Land Department. Registration can be done online or at a service centre and is renewed with each contract. Without Ejari registration, the contract is hard to enforce and you may not get the trade licence or utility connections you need.
4. Agree the terms
- The rent, the number of cheques and the renewal terms.
- Rent-free months for fit-out, and who pays for the fit-out.
- Maintenance, service charges and who handles repairs.
- Notice periods for renewal or leaving, as set out in the contract and Dubai tenancy law.
Checklist
- Yearly rent, VAT, deposit, fees and number of cheques agreed
- Licence activity allowed in the premises confirmed
- Tenancy contract registered with Ejari
- Fit-out, maintenance and renewal terms in writing
Questions people ask
Is Ejari registration required for a commercial lease in Dubai?
Yes. Every residential and commercial tenancy contract in Dubai must be registered with Ejari, the Dubai Land Department system.
Is VAT charged on commercial rent in the UAE?
Yes. Leasing commercial property is a taxable supply at 5%, so a VAT-registered landlord adds 5% to the rent.
How is commercial rent quoted in Dubai?
Usually in dirhams per square foot per year, paid with one or more cheques.
Sources
- Ejari registration: Dubai Land Department
- VAT on commercial property: UAE Federal Tax Authority
- Trade licences in mainland Dubai: Department of Economy and Tourism
Next steps
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