The Federal Tax Authority (FTA) of the UAE has introduced a significant expansion to its VAT refund program, specifically aimed at nationals building new homes. By broadening the list of eligible construction expenses, the government expects citizens to save around Dh25,000 per claim. This initiative is projected to return a total of Dh200 million to homeowners, with the overall value of approved refunds expected to climb past Dh1 billion by 2026. This policy, which officially took effect on January 1, 2026, aligns with the national vision to enhance family stability and improve the quality of life for Emirati citizens.

To access these savings, the FTA has updated its digital portal to include a wider range of essential home features. The expanded list now covers amenities such as private gyms, game rooms, landscaping, swimming pools, and integrated smart home or security systems. Furthermore, expenses related to building quarters for domestic staff and even complete reconstruction projects—including demolition—are now eligible, provided these elements serve the primary residence. As the rollout continues, the FTA plans to engage with the public through local district councils to provide guidance and gather feedback on these new tax relief measures.