What are the VAT treatment applicable on the supply of residential buildings?

If a property or a newly constructed residential building is sold within three years of its construction, then the first sale will be a zero-rated VAT supply. Any subsequent sales of this property will be exempt from VAT. 

The supply (rent, lease, or sale) of residential accommodation is exempted from VAT if any of the following conditions are fulfilled:

• The duration of the lease exceeds 6 months
• The tenant of the property holds an Emirates ID