Department of Culture and Tourism – Abu Dhabi aims to share Emirati heritage with a wider group of visitors. Khushnum Bhandari / The National
Department of Culture and Tourism – Abu Dhabi aims to share Emirati heritage with a wider group of visitors. Khushnum Bhandari / The National
Department of Culture and Tourism – Abu Dhabi aims to share Emirati heritage with a wider group of visitors. Khushnum Bhandari / The National
Department of Culture and Tourism – Abu Dhabi aims to share Emirati heritage with a wider group of visitors. Khushnum Bhandari / The National

Abu Dhabi updates holiday home policy to include farmhouses


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Farmhouse owners can now turn their properties into holiday homes.

On Wednesday, the Department of Culture and Tourism – Abu Dhabi updated its licence policy to diversify the holiday homes available in the emirate, while offering farm owners additional ways to earn income.

Travellers are already able to take holidays in caravans and RVs.

Additionally, landlords can now have more than one holiday home licence for multiple units, giving investors and property management companies more investment opportunities.

Saleh Mohamed Al Geziry, director general for tourism at the department, says the expansion will support both Abu Dhabi's hospitality and agri-tourism sections.

"As the emirate witnesses substantial tourism growth, it is imperative that we continue to offer visitors unique and sustainable experiences that reflect our rich heritage and renowned Emirati hospitality," he adds.

The new rule precedes the introduction of a more comprehensive policy framework aimed at encouraging the licensing and promotion of farmhouse tourism, with farm owners urged to develop Emirati-led agri-tourism activities for those seeking new experiences in the UAE.

Farmhouse owners looking to register their properties as holiday homes can access a comprehensive manual available on the department's website. Landlords have a grace period of six months to begin the process.

In recent years, there has been a push for holiday homes and hotel alternatives in the UAE, as demand in the sector grows year after year.

Dubai has allowed holiday homes for more than a decade; last August, Sharjah launched a regulatory framework for its Holiday Homes Project, allowing residents to rent out properties for short stays.

Abu Dhabi also signed a deal with Airbnb last year, with the tech platform providing access to its City Portal, which provides data and insights about rental activities in the emirate.

The company also launched a dedicated "responsible hosting" page to help new and existing hosts in Abu Dhabi understand the local rules for holiday homes.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: August 30, 2023, 9:44 AM