Tax residence in UAE by investment into real estate

You can become eligible for a residence permit (resident’s visa) in the United Arab Emirates if you purchase real property in the country that is worth at least US$ 272,000. A legal resident in the UAE can also qualify for tax residency in the country.

The interest to the UAE on the part of foreign investors into real estate remains stable. Compared to other cities popular with foreign investors such as Singapore, London, Monaco, or Moscow, the price-to-quality ratio in the UAE is more advantageous. Dubai in particular offers an opportunity to gain as much as 7% a year as return on investment into real property located in the Emirate. 

Tax residence in UAE

Residence permit in the UAE by purchase of real estate

If you invest at least US$ 272,000 in Dubai property, you and the members of your family will qualify for legal residence permits in the emirate. Dubai residence permits are valid for two years and after that, they need to be renewed.

To qualify, you must have full possession of the property. If you make a purchase by instalments or buy the property on a mortgage, you will be able to apply for a residence permit only when the full investment has been made and you take possession.

The investment object shall be residential property. To obtain residence permits for your dependent family members, the area of the property should of course be large enough for the whole family. Besides, the main applicant must have enough income for sustaining all dependent family members. The sources of income can be located in the UAE or outside the country.

A legal residence permit in the UAE will give you access to banking services in the country including the possibility to apply for loans from the local banks.

To keep the permit valid you have to visit the United Arab Emirates at least once in every 180 days.

Also note that the property has to be approved by the UAE Government for investment purposes. You cannot simply buy any piece of property in the country that you like. At the same time, the number of Government-approved development projects is growing. These include such residential complexes in Dubai as The Palm Jumeirah, Dubai Marina, Jumeirah Lakes Towers, Emirates Living, and others.

Good news: There is no property tax in Dubai! Therefore you will not have to pay any taxes on the house or apartment you buy there. Besides, there are no taxes on income, dividends, interests, or royalties in UAE either!

Tax residency in the UAE

The United Arab Emirates government has made treaties on double taxation avoidance with a large number of other countries. Both a natural person and a legal entity can use the benefits of these treaties. As there is no personal or corporate income tax in the UAE, the benefits can be great indeed.

To be able to make use of the benefits you will have to acquire a Tax Residence Certificate in the UAE. Both private individuals and corporate entities are eligible to apply for the Certificate.

A private individual has to hold a legal residence permit and to spend more than 180 days in the UAE in order to qualify for tax residency. The Tax Residence Certificate is issued by the UAE Ministry of Finance and it can be submitted to the tax authorities of any country in order to confirm the Certificate’s holder tax residence in the UAE.

If you have to inform the fiscal authorities of more than one country that you are a tax resident in the UAE, you will have to obtain a separate Tax Residence Certificate for each country. The state duty payable for each Certificate is relatively high – about 600 to 700 US dollars.

Please ask for our professional assistance in purchasing real property in Dubai, obtaining a legal residence permit there, and becoming a tax resident. You are welcome to contact us by email, live chat or a messenger. We always respond quickly!

Can I acquire a legal residence permit in the UAE if I buy some real property in Dubai?

Yes, you can. The minimum required investment amount is US$ 272,000.

What is required for obtaining tax residence in the UAE?

If you would like to obtain a Tax Residence Certificate in the UAE, you have to hold a legal residence permit and physically live in the country for at least 180 days per year.

Can I acquire residence permits for the members of my family if I purchase property in Dubai?

Yes, you can if the area of the property is large enough and if you can demonstrate having an income that is sufficient for sustaining yourself and your family members.

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