Not every country allows foreign residents the chance to buy and own property. But Dubai is leading the way in a new trend as it has opened up different investor visas that allow foreign investors to buy properties in select areas of the city.
Once you do buy property, you can get an investment visa that allows you to remain and manage those properties. Or just live in them while you work at your regular job.
This is a great opportunity to invest in very popular real estate and still get a great return on your investment. But you should act quickly as property values are rising.
This is also called the Dubai partner visa, and it is for those foreign investors who want to invest in a business or property or start their business in Dubai. The privileges one gets with this visa are that one can live, work and even sponsor family members once they are approved.
When investing in a business, the foreign investor must make a minimum of 72,000 AED share purchase. Their business start-up must have the same amount invested in it as well.
The investment amount may be a minimum of 1,000,000 for a 3-year visa, 5,000,000 for a 5-year visa, and a 10,000,000 minimum investment for the 10-year investment business. Other requirements apply as well.
One way to obtain this type of visa is to invest in residential property, and the property value must be at a minimum of 1,000,000 AED. This transaction cannot be done as a gift, for that would make the recipient a non-investor. One has to invest their own money to get this visa.
You can do joint ownership as long as the foreign investor’s share is worth a minimum of 1,000,000 AED. Once the visa is approved, you get access to driver’s licenses and other benefits. But you cannot be out of the country for longer than 6 months at a time.
Two of the major rules that govern this visa are one, the property has to be residential and not commercial. If you are taking out a loan to buy this property, then no more than 50% of the purchase amount can be under a mortgage.
Two, the property has to be located in a free-hold area and not an off-plan development. There are fees included in obtaining this visa. Other requirements are that you get an entry permit first, go for a medical examination and buy health insurance. The costs of this process are as follows:
Entry permit: AED 1,175 for individuals in the UAE and AED 525 for individuals outside the UAE.
Change of status: AED 675 (not required for individuals entering from outside the UAE).
Visa stamping: Approximately AED 870
Emirates ID: AED 405
Medical Tests: AED 322.5
Yes, it is. The most difficult part will be gathering all the needed documents. Then you will have to restrict yourself to buying only the property that is eligible for the property investor visa.
These properties are- residential apartments, serviced apartments, hotel apartments, villas & townhouses, offices, and warehouses, etc. Those properties not eligible for this visa program are- off plan, leasehold, loaned, and disputed properties and land plots.
One thing the investor property visa does not do is grant the holder any right to work in the city or the entire UAE. Be careful, as the different emirates in this union all have their own rules and do not necessarily have the same ones as Dubai.
There are new rules, and they may be changing all the time. This is shown by the rule changes done earlier in this century when 2007 new rules came into effect, and in 2008 those rules were revised.
The new rules that come into effect have the purpose of boosting long-term property ownership and avoiding a lot of wild speculation. Plus, they are designed to provide leasing stability to the tenants.
These rules cut down on the buy-and-flip mentality that many investors have that allows them to make a quick profit.
One of the major benefits of owning property and having this visa is that you do not have to pay any taxes. Dubai has signed tax treaties with different countries, so the tax benefit helps you get a better return on your investment.
Other benefits include unrestricted access to high-quality goods and services, transportation, and communication. Then for legal issues, you have the same rights as citizens of Dubai and can take legal issues to court.
Access to driver’s licenses means you get to have the same freedom of travel as Dubai citizens.
There are different rules for each level of the investor visa. For the 5 and 10-year options, there are a few similar restrictions. For example:
You should be able to keep your business for three years
You should have total ownership of your investment amount
If you’re investing in real estate, it shouldn’t be through loans
Each option has its own minimum investment amount. There are individual rules governing how those amounts can be paid or where they came from. If you go with a partnership, your investment minimums do not change.
Your side of the investment must meet the rules for solo investing.
When you are thinking of expanding your real estate portfolio, consider Dubai. While the rules may be strict, you do not have to do this venture alone. We can be there at your side, guiding you through the whole process.
Our company and agents have over 10 years of experience working in Dubai real estate and investments. We can help you achieve your investment goals and make sure you know all the requirements and regulations in that city. Call us today and see what we can do for you.
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