Dubai Tax Residency

Dubai is becoming more and more popular amongst businesspeople who seek to reside within a comfortable and business friendly environment and benefit from low tax payments. As it is well known, Dubai does not impose income and corporate tax. In fact, Dubai’s government does not impose taxation on the sale of property, income from capital, inheritance tax and many other taxes which other jurisdiction impose.

Due to the above aforementioned, Dubai is one of the top tax havens in the world. Furthermore, private businesses also have the opportunity to upgrade their tax base at an international rank through international tax agreements. Finally, Dubai is not listed on the Black Offshore List of global organizations that battle against money laundering.

Following is a list of documents required to obtain a Tax Residency in Dubai:

  • A Copy of valid Foreign Passport;
  • A Marriage Certificate Copy;
  • Copy of Birth Certificate of Child.

The above documents are the basic documents needed to apply for a tax residency in Dubai. Nonetheless, each case is different and may require additional documents.

The Most Important Advantages of being granted a Tax Resident in Dubai are the following:

  • Safe destination for residents and families;
  • Comfortable living conditions for residents and families;
  • High Education Level & Advanced Educational Institutions are available;
  • All family members may be granted a Residence Visa;
  • Having the Tax Resident status carries multiple tax benefits;
  • A Tax Resident Status grants freedom of movement throughout the Persian Gulf States;
  • Business progression & development.

How to Obtain Tax Resident Status

Dubai provides multiple effective & simple ways to be granted a Tax Resident Status. Some are outlined below:

  • Upon registration of a local company;
  • By the purchase of immovable property in Dubai;
  • And via an employment contract.

Each of the above ways carries diverse requirements. Below we will review the most popular ways of receiving a Tax Resident Status and the individual requirements.

Obtaining Tax Resident Visa by Registering a Local Company

This method is separated into various consecutive steps that consist of the following:

  • Submitting the Application as well as all the appropriate documentation;
  • Registering a local company within the preferred jurisdiction (Free Trade Zones);
  • Submission of Visa Application for the company’s executives, company’s owners as well as their families.

It is significant to highlight that registering a company within the UAE allows the owners of the company to be granted an Investor Visa. Further, the employees of the company are granted a Work Visa. Additionally, an individual may be granted a visa in the UAE without carrying out real commercial or economic operations within the country. Therefore, an individual may register a local company simply to receive a visa for him/her and family members.

An UAE Residence Visa is granted within two to three weeks. The period, which the visa is valid, depends on the registered company’s legal status. Generally, the visa is valid for approximately two to three years. When it expires, the visa may be extended for a longer period.

Obtaining a Visa by the Purchase of Immovable Property in Dubai

In general, the UAE real estate market is stable and uninfluenced by the global financial crisis. These two features have attracted foreign investments and developments within the emirate. According to experts, Dubai’ s real estate has a stable trend of increasing in price, making investing in real estate a great opportunity for foreigners.

Foreigners are permitted to acquire real estate in Dubai, regardless of the category. Dubai imposes only one restriction when it comes to the acquisition of property by foreigners. That is, foreigners should obtain immovable property within specialized areas known as Freehold, which include the majority of newly developed areas.

Dubai’s real estate market also allows foreigners to purchase economy class flats and luxury coastal dwellings by the coast. The purchase of such property depends on the individual’s wishes as well as financial status.

The UAE has made alterations to the legislation concerning the acquisition of property within the country by foreigners. The most important change is the implementation of the State of Register of Testaments. Before the alteration in legislation, foreign businesspeople who invested in real estate in Dubai worried that the Shariah controlled the hereditary rights. However, currently the situation has changed and the law protects foreign property owners, so they do not need to worry about hereditary issues as he/she appoints heirs. All that is required is a registration of a testament in Dubai’s register.

Tax Resident Status by the purchase of real estate is obtained under conditions. For instance, the real estate property price must amount to 1 million Dirhams or more. Further, the applicant’s income every month should amount to 10 thousand Dirhams or more. Applicants who meet the requirements will be given the Residence Visa for one year and have the possibility to extend it once it expires.

Conclusion

A UAE Residence Visa and Tax Resident Status grant residency freedom, medical treatment, education and movement in and out of the UAE. Those who acquire a Tax Resident Status benefit from an array of tax benefits. Foreigners that obtain a visa may come and go whenever they want, work and get educated without being subject to any immigration restrictions.

The procedure entailed to be granted a residence visa is simple. The only restriction imposed by the UAE is that the visa holder not be out of the country for a 6-month period. However, if individuals fly back to the UAE for one to two days within the 6-month period, the visa holder does not lose his/her visa.