Dubai is the largest and most populous city in the UAE. It is an independent jurisdiction and constitutes a business center in the Middle East. Oil revenues helped accelerate the development of the city, which was already a major trading center. As a growth center for regional and international trade since the early 20th century, Dubai’s economy is based on income from trade, tourism, aviation, real estate, and financial services. Furthermore, it has become a great access point due to the trust and security that banks currently offer.
What residency programs are offered in the United Arab Emirates?
Residence through the registration of a company in Dubai
The most popular way to obtain residence in Dubai is by registering a company in the Emirate or in one of the many free zones that operate in the UAE. If the opening of a company on land involves the sponsorship of the local partner, registering a company in the UAE free zone provides full ownership of the company. This type of residential visa allows foreign citizens to be shareholders in a local company and also to hire employees depending on the size of the office space they lease, which must be within the free zone facilities.
The validity of an owner / investor visa obtained by the incorporation of a company in the UAE is three years and can be renewed upon expiration, as long as the company remains in good condition.
Residence through the acquisition of a property in Dubai
Another way to obtain a residence visa in Dubai is by buying a property. The condition of obtaining a residence through this means is buying a property title without any lien of at least AED 1 million (approximately USD 275,000). A residence visa obtained in this way has a validity period of 2 years and does not grant the right to work in the Emirate. However, the main advantage of this option is that owners are not required to register a company in Dubai.
What benefits can investors and entrepreneurs obtain with this type of residence?
The United Arab Emirates is a very comfortable, attractive place to live and do business, therefore the residence visa in this jurisdiction is a very common choice among businessmen from all over the world. Obtaining a UAE residence visa provides a considerable number of advantages and opportunities. Owners of a residential visa are allowed to work and stay in the UAE without interruption and without leaving the country for a period of time, as long as the visa remains in effect.
The residential visa received in Dubai or in another emirate of the UAE also provides the opportunity to apply for residential visas for immediate family members: spouse and / or children under 18 years of age.
Even when you have a residence visa in Dubai, the United Arab Emirates does not imply any additional tax consequences, since in the Emirates neither income taxes nor corporate taxes are applied to individuals or entities that have tax resident status in the country. . The UAE offers opportunities to legitimately reduce the overall tax bill of any high net worth individual. This is due to the international double taxation agreements that are signed between the United Arab Emirates and various countries, and the fact that the UAE does not apply any form of direct taxation.
An individual who acquires a UAE residence visa is considered a UAE tax resident and subject to reporting under CRS regulations. The UAE has concluded double taxation treaties with more than 76 countries in the world, and a UAE resident can take advantage of this agreement in their home country by evaluating taxes. The Minister of Finance – (UAE) will issue a certificate of fiscal domicile in an application indicating his place of residence for tax purposes.