Some clients are interested in learning more about the possibility of corporate property ownership in Dubai and how to set up a property holding company that suits their interests.
Dubai is a hotspot for investment, and the real estate sector is the most sought-after by both foreign and local investors.
Real estate investment in the UAE is one of the most profitable long-term companies. Despite falling property prices, the market is likely to gain pace over the next several years.
Property ownership in the UAE will undoubtedly generate long-term returns for investors. Depending on your preferences, you can select from various freehold spaces such as flats, villas, workspaces, and commercial spaces.
It’s worth mentioning that although companies registered in places like the Cayman Islands, British Virgin Islands, or Crown Dependencies are often used to hold property in other countries, they can’t directly own real estate in the UAE.
Types of Companies Eligible
Various types of overseas companies are eligible to purchase property in Dubai. Whether offshore companies, free zone entities, or branches of foreign corporations, the options are diverse and cater to different business structures and objectives.
Company Ownership of Property in Dubai
In Dubai, if you want to own property through a company. It needs to be registered in any of these three specific areas:
- The Dubai International Finance Centre (DIFC).
- The Jebel Ali Free Zone (JAFZA).
- The Ras Al Khaimah International Corporate Centre.
Many investors lean towards DIFC or RAKICC because they follow common law systems. These systems offer different types of shares and access to courts operating under DIFC’s common law.
Registration Process
The registration process for overseas companies seeking to buy property in Dubai involves obtaining necessary licenses, approvals and permits from the Dubai Land Department. While the process may seem intricate, experienced legal advisors can streamline the procedures, ensuring a smooth transaction.
Tax Implications
Understanding the tax implications of property ownership is crucial for overseas companies in Dubai. While the emirate offers tax-efficient structures and incentives, investors must navigate property transfer fees, corporate taxes, and VAT to optimize their investment returns.
Advantages and Considerations
Investing in Dubai real estate through an overseas company offers numerous advantages, including:
- Asset protection
- Tax benefits and
- The value of your investment could grow in the future
However, investors must weigh these advantages against considerations. Such as market volatility, regulatory changes, and legal complexities to make informed decisions.
Conclusion
For Foreign Nationals in Dubai considering investing in the city’s real estate. It’s vital to understand the rules, look into financing options, and think about taxes. Dubai is known for its bustling business scene and exciting property market, offering plenty of room for growth. By making smart choices and getting advice from experts, foreign companies can navigate the process of buying overseas property for sale in Dubai and maximize their investment potential.
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