Real Estate Bookkeeping Services: A Complete Guide for Property Businesses in Dubai
07/08/2025
YOUNG AND RIGHT ACCOUNTING & TAX CONSULTANCY
YOUNG AND RIGHT From corporate tax registration to audits and bookkeeping, Young & Right offers personalized solutions that keep your business compliant and stress-free. Let’s take the complexity off your plate—starting with a free consultation.
Book Your Free Consultation
As the UAE accelerates its role in the global digital economy, the regulatory landscape for virtual assets is becoming increasingly structured. With authorities like the Virtual Assets Regulatory Authority (VARA) and the Dubai Financial Services Authority (DFSA) working to create a compliant ecosystem, questions surrounding VAT on cryptocurrency mining—including bitcoin mining as a prominent example—and related crypto transactions are becoming more prominent. The UAE's approach to digital asset regulation is comprehensive and forward-thinking, reflecting the UAE's commitment to fostering a secure, transparent, and innovative environment for the digital asset sector.
Cryptocurrency mining—the process of validating blockchain transactions and earning digital tokens like Bitcoin—is now widely practiced by both individuals and crypto companies across the UAE. Bitcoin mining, in particular, relies on mining rigs, which are specialized computers that provide the computational power necessary to process blockchain transactions and earn rewards. But is cryptocurrency mining considered a taxable supply? Does it fall under VAT exemption, or must miners register for VAT and pay accordingly?
According to current UAE VAT law and guidance issued by the Federal Tax Authority (FTA), the answer largely depends on whether the activity generates consistent, identifiable income from a specific customer. If crypto transactions resulting from mining lead to payments from third parties or customers, the activity may be subject to VAT, much like other taxable business supplies.
However, in cases where rewards are received from the blockchain network without a clear customer relationship—such as block rewards—VAT may not apply, as there is no direct consideration. This nuanced treatment places an obligation on miners and crypto firms to carefully assess whether their activities fall under VAT-exempt supplies or taxable supplies. Businesses involved in digital asset activities, such as crypto exchanges and DeFi platforms, benefit from these VAT exemption policies, which help lower operational costs and create a more attractive regulatory environment.
Cryptocurrency mining in the United Arab Emirates involves the use of high-powered computers—commonly referred to as mining rigs—that often rely on graphics processing units (GPUs) as essential hardware for mining operations. These computations validate and record cryptocurrency transactions on decentralized blockchain networks. In return, miners receive compensation in the form of newly minted digital currencies such as Bitcoin or Ethereum, or from transaction fees linked to crypto transactions. A detailed analysis of VAT implications for different mining setups follows.
From a regulatory standpoint, the UAE’s value added tax (VAT) system, governed by Federal Decree-Law No. (8) of 2017, categorizes taxable supplies as economic activities performed for consideration. This definition raises a key question: does crypto mining qualify as a taxable supply under UAE VAT law?
The answer is nuanced. In most cases, individual miners and companies are not paid directly by a customer or business for their service, but instead are rewarded by the blockchain protocol itself—raising doubts about whether a clear “supply for consideration” exists. Since no conventional buyer is involved in many mining transactions, the Federal Tax Authority (FTA) may not classify all mining activity as a VAT-taxable event.
Given the fast-evolving nature of blockchain and digital asset regulations, staying aligned with local VAT obligations is critical for any crypto-focused enterprise operating within the UAE.
While the Federal Tax Authority (FTA) has not yet published a dedicated guide for cryptocurrency tax, tax professionals in the United Arab Emirates rely on general principles of Value Added Tax (VAT)—as outlined in Federal Decree-Law No. (8) of 2017—to determine how mining activities should be treated. Depending on the nature of the operation, certain crypto mining activities may be taxed under UAE VAT law, while others may fall outside the scope of VAT. In comparison, other countries may have different approaches to VAT on crypto mining, with some jurisdictions offering exemptions or applying different tax rates. Miners are advised to consult with tax experts to ensure compliance with VAT regulations and to optimize their tax position.
In cases where individuals engage in personal mining or participate in pooled networks without entering into formal agreements or offering services to others, the activity is typically viewed as self-supply. When an individual acts as the first miner, they are the initial participant to successfully solve the cryptographic puzzle and add the first block to the blockchain, which is significant as it initiates the generation of new coins in a Proof-of-Work system. The digital assets (such as Bitcoin or Ethereum) are received as protocol rewards rather than from a specific customer. However, as mining difficulty increases, the profitability and practicality of personal mining can decrease, making it harder for individuals to earn rewards and increasing operational costs. To address this, many individual miners choose to join a mining pool, where they combine their computational resources with others to improve their chances of successfully mining blocks and earning rewards. Since there is no clear exchange of value between two identifiable parties, this type of activity is not considered a taxable supply. As such, it does not attract value added tax (VAT) and is generally VAT exempt under UAE law.
On the other hand, when miners operate as part of a business, offering services such as infrastructure, hosting, or mining-as-a-service solutions to clients in exchange for fiat currency or crypto tokens, the transaction qualifies as a taxable supply. For VAT purposes, the fair market value of any received crypto tokens is used to determine the taxable income from these activities. These commercial mining operations clearly involve the provision of a service to another person or entity, making them subject to added tax at the standard rate of 5%.
If the annual turnover from such services exceeds the mandatory registration threshold of AED 375,000, the operator must register with the Federal Tax Authority and comply with UAE value added tax regulations. This includes charging VAT on invoices, maintaining proper financial records, and submitting periodic VAT returns, even when operating within financial free zones.
The UAE has no personal income or capital gains tax for individuals trading or holding digital assets, making it highly attractive to crypto enthusiasts. But once an activity turns commercial, such as managing a mining facility, operating a crypto exchange, or running a blockchain-based business - tax applies.
Here's how crypto taxation in the UAE breaks down:
Personal investment in cryptocurrencies (buying and holding) is not taxable.
Trading on your own account with no business structure usually has no tax implications.
Corporate tax, introduced in 2023, applies to business income from cryptocurrency transactions and crypto mining.
VAT applies to business activities involving the supply of services or goods for consideration—including mining services, wallet services, or token distribution platforms.
The United Arab Emirates has introduced a 9% corporate tax rate for businesses, including those engaged in cryptocurrency transactions and the broader virtual assets sector. This corporate tax applies to crypto businesses whose annual revenue exceeds AED 375,000, making it essential for companies operating in the UAE’s dynamic crypto market to monitor their income and ensure compliance.
Crypto businesses must register with the Federal Tax Authority (FTA) and maintain accurate accounting records, as well as file regular tax returns. The Virtual Assets Regulatory Authority (VARA) and the Dubai Financial Services Authority (DFSA) play a pivotal role in overseeing crypto businesses, ensuring that all operations adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations. These measures are designed to foster a secure and transparent environment for cryptocurrency transactions and to prevent illicit activities.
The UAE’s corporate tax regime is structured to encourage business growth and attract investment, including in the rapidly expanding virtual assets industry. By providing clear rules and robust oversight, the UAE supports the development of crypto businesses while ensuring that tax applies fairly across all sectors. For crypto companies, staying compliant with corporate tax requirements is not only a legal obligation but also a key factor in building trust and credibility in the global digital economy.
Yes—cryptocurrency is legal in the UAE, but regulated.
The UAE operates under a multi-jurisdictional framework:
The Central Bank permits virtual assets but warns against unregulated use.
The Securities and Commodities Authority (SCA) licenses crypto exchanges and brokers for mainland operations.
Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have built comprehensive rules for virtual currencies and blockchain platforms.
Dubai Multi Commodities Centre (DMCC) offers crypto licensing and commercial space to crypto businesses in a regulated free zone.
VARA—Dubai’s specialized regulator—manages licensing and supervision of crypto activities in the emirate’s free zones.
As long as entities register with the correct body and follow anti-money laundering guidelines, they can legally operate crypto businesses—including mining cryptocurrency.
If you mine coins without a customer or service agreement, your rewards are not considered taxable.
Hosting, sharing mining rigs, or offering token payouts to third parties is a taxable activity.
Once your mining income or related services exceed AED 375,000 annually, VAT registration becomes mandatory.
If you're VAT-registered and offering taxable services, you may recover VAT on equipment, hosting infrastructure, and energy bills.
To stay compliant, log every wallet payout, invoice, service contract, and mining expense—especially if you're subject to audit by the FTA.
The Securities and Commodities Authority (SCA) is at the forefront of regulating cryptocurrency mining activities in the UAE. The SCA has established comprehensive regulations for crypto asset activities, including mining, to ensure that all mining operations are conducted transparently and securely. Companies involved in cryptocurrency mining must obtain the necessary licenses and permits from the SCA, demonstrating their commitment to regulatory compliance and responsible business practices.
These regulations are designed to prevent money laundering and other illicit activities, safeguarding the integrity of the UAE’s crypto market. The SCA’s oversight extends to all aspects of mining activities, from the use of blockchain technology to the management of mining operations and the handling of digital assets.
The Dubai Multi Commodities Centre (DMCC) further supports the growth of the crypto industry through its dedicated Crypto Centre. This hub provides resources and infrastructure for companies involved in crypto assets, blockchain technology, and blockchain-enabled trading platforms. The DMCC’s initiatives, combined with the SCA’s regulatory framework, highlight the UAE’s commitment to fostering a secure, innovative, and thriving environment for cryptocurrency mining and related activities.
Crypto taxation is not plug-and-play. From identifying whether an activity qualifies as a taxable supply, to understanding when input tax can be claimed, crypto investors and miners must interpret a complex regulatory landscape.
Adding to the challenge, blockchain transactions often involve smart contracts, anonymous parties, and cross-border elements—which can make VAT compliance difficult to track.
At Young & Right, we help you answer the most important questions:
→ Is my mining setup taxable?
→ Can I claim VAT on my rigs and electricity?
→ How do I structure my operations in a free zone?
→ What’s my exposure under the new corporate tax law?
At Young & Right Accounting and Tax Consultancy, we understand that the crypto space in the United Arab Emirates is growing rapidly—but so is its regulatory complexity. Businesses operating in this sector must navigate ambiguous VAT classifications, evolving FTA interpretations, and operational risks tied to non-compliance. That’s where we come in.
Whether you’re launching a crypto mining operation, establishing a virtual asset exchange, or managing a blockchain-based business, we provide end-to-end tax and accounting support to ensure you remain legally sound and financially optimized.
Not all crypto transactions are considered taxable under UAE law. Our team conducts a detailed analysis of your business model—assessing your mining activities, smart contracts, staking operations, and tokenomics—to identify what constitutes a taxable supply and what may be VAT exempt. This clarity allows you to operate confidently while minimizing unnecessary tax exposure.
Navigating the Federal Tax Authority's (FTA) EmaraTax platform can be challenging, especially for digital-first businesses. We manage the entire VAT compliance lifecycle: from VAT registration and due diligence to periodic VAT returns, audit response, and document reconciliation. Whether you're earning in fiat or crypto, we ensure that your filings are accurate, timely, and defensible.
Crypto miners investing in specialized infrastructure—such as mining rigs, cooling systems, software, and high-power utility services—may be eligible to recover input VAT on such capital expenditures. We help assess eligibility, prepare the required documentation, and submit claims through EmaraTax, aligning with current excise and VAT rules applicable to digital assets.
With crypto-friendly financial free zones like DIFC, DMCC, and ADGM offering tax incentives, setting up in the right jurisdiction can be a game-changer. However, structuring your company to meet both free zone requirements and UAE mainland VAT obligations is crucial. We assist in entity setup, tax planning, and license compliance—ensuring you benefit from regulatory leniency without triggering penalties or FTA scrutiny.
The UAE’s stance on digital assets, blockchain platforms, and cryptocurrency transactions is maturing fast—driven by global trends and institutions like the Virtual Assets Regulatory Authority (VARA). Our advisory services keep your business ahead of the curve, offering strategic guidance on VAT, corporate tax, capital gains, and anti-money laundering (AML) obligations. We also provide guidance on future tax reforms that may impact crypto companies and decentralized applications (dApps) operating in the region.
The UAE has embraced digital currencies and blockchain technology, but that doesn’t mean crypto is outside the reach of taxation. As a crypto-friendly jurisdiction, the country provides legal clarity—but expects businesses to meet their VAT and corporate tax obligations.
If you're involved in crypto mining, either independently or commercially, now is the time to assess your tax exposure and ensure you’re not missing opportunities for recovery—or exposing yourself to risk.
Let Young & Right help you navigate UAE crypto taxation with confidence, accuracy, and full regulatory alignment.
Confused about VAT on your mining setup or blockchain services? Let Young & Right simplify the tax side of your crypto business—from EmaraTax registration to VAT recovery and free zone structuring.
Talk to a Crypto Tax Expert
