Does the owner of the rent to own home have to pay taxes on the rent they received?

In Dubai, the owner of a rent-to-own property does not pay income tax on the rent they receive. The UAE does not impose income tax on individuals, making it an attractive location for property investment.

However, property owners must account for other costs, such as:

1. Municipality Fees: A housing fee (5% of the annual rent) is typically added to tenant utility bills.

2. VAT (if applicable): While residential rents are exempt from VAT, certain commercial properties may attract a 5% VAT.

It’s always advisable for property owners to consult with local experts or legal advisors to ensure compliance with regulations and understand any applicable fees.

Read More about it here: propertyfinder.ae/blog/rent-to-own-properties-in-dubai/