The United Arab Emirates has introduced a major enhancement to its Value Added Tax (VAT) refund programme for citizens building new homes, offering significant financial relief to families. The initiative, announced by the UAE’s Federal Tax Authority (FTA), broadens the list of construction-related expenses eligible for VAT refunds, helping homeowners reduce the overall cost of building a residence.
Under the revised rules, UAE nationals constructing new homes can now claim VAT refunds on a wider range of expenses that were previously excluded from the programme. Newly eligible costs include smart home technologies, security systems, electronic garage doors, home gyms, game rooms, and accommodation areas designated for domestic staff such as drivers and watchmen.
These additions reflect the changing needs of modern families and acknowledge that contemporary homes often include advanced technology and specialized living spaces. According to the FTA, the expanded refund scheme is expected to generate average savings of approximately Dh25,000 per family. The measure forms part of the UAE’s broader efforts to strengthen family wellbeing, encourage home ownership, and support citizens during a period when construction costs remain a significant concern.
The initiative also aligns with the country’s “Year of Family” objectives, which focus on enhancing social stability and improving quality of life for Emirati households. The refund programme applies to newly built residences intended for personal or family use. To qualify, applicants must be UAE nationals and submit their refund claims within the specified period after receiving the property’s completion certificate. Proper tax invoices, proof of payment, and construction-related documentation are required to support applications.
The latest expansion builds on the success of the existing VAT refund programme. Earlier this year, the FTA reported that thousands of Emirati citizens had already benefited from VAT refunds on newly constructed homes, with hundreds of millions of dirhams returned to homeowners. Officials believe the updated scheme will further ease financial pressures on families and encourage more citizens to invest in long-term housing.
By extending VAT refund eligibility to modern home features and essential facilities, the UAE is demonstrating its commitment to supporting citizens and making home construction more affordable. The initiative is expected to provide meaningful savings while helping families create safer, smarter, and more comfortable living environments for future generations.
