Yes, phantom tax can arise in real estate investments, particularly when property values increase but no actual cash flow is generated. This "unrealized gain" can still be taxed, creating a financial burden without liquidity. In the context of Corporate Tax in UAE, while the new corporate tax regime (effective June 2023) focuses on taxable income, real estate investors must carefully assess how unrealized gains might impact their tax liabilities. The UAE’s corporate tax framework exempts certain sectors, but real estate businesses and investment activities could still be subject to tax. Proper planning and understanding of both phantom tax implications and Corporate Tax in UAE regulations are essential to avoid unexpected liabilities and optimize investment returns.