Few countries have transformed as rapidly as the United Arab Emirates (UAE) in recent years. Once a small desert nation, it has evolved into a global hub for business and real estate, thanks to a strategic push for diversification. This growth has made the UAE a prime destination for foreign direct investment (FDI) and real estate investors seeking new, and better opportunities.
One of the most enticing initiatives attracting investors is the Golden Visa for the UAE. Launched in 2019, this special visa offers foreigners long-term residency and grants access to Dubai’s world-class infrastructure, rich culture, and booming real estate market.
In this guide, we cover what the Golden Visa is, helping real estate investors make the most of this opportunity.
The UAE’s Golden Visa, or Dubai Golden Visa, allows real estate investors to live, work, and invest in the country for up to ten years. Unlike standard visas, it’s independent of employment or a local sponsor, providing real estate investors with easier access to the country’s property market. It offers long-term stability and greater flexibility to manage their assets.
The visa is available to investors across various sectors, including real estate, finance, science and technology, arts, and education, benefiting both investors and their families. Renewable every ten years, it also offers unlimited entries to the UAE, ensuring ease of travel and business management.
The UAE once predominantly relied on its oil resources to drive economic growth. However, like many forward-thinking nations, it recognized the importance of diversification to mitigate risks and sustain long-term prosperity. The Golden Visa program is one of several initiatives implemented to attract foreign investors, retain top talent, and promote innovation.
By welcoming skilled professionals and investors, the UAE aims to encourage growth across multiple sectors, boosting economic development. Ultimately, the Golden Visa program aims to create a diverse and dynamic economy that is less reliant on oil.
The Golden Visa offers long-term residency for up to 10 years. After this period, investors can renew their visa and continue enjoying all the benefits that come with it. Long-term residency provides stability for individuals and families, allowing them to plan confidently for the future.
Golden Visa holders can enter and exit the UAE without restrictions, making it ideal for frequent travelers, whether for business or leisure. With it, holders will no longer need to apply for a visa every time they enter the country, eliminating any potential delays and bureaucratic hurdles.
Property investors wanting to purchase Dubai real estate can benefit greatly from this visa. As they invest in property, they are also investing in their future by securing long-term residency. The long-term visa also simplifies investing as they no longer need to go through additional processes to obtain a residency visa.
The UAE does not impose income or capital gains taxes, and there are exemptions for inheritance, gifts, and property. However, starting in 2024, a 9% Corporate Tax will apply to companies with taxable income exceeding AED 375,000. This near-tax-free environment helps investors maximize their returns and achieve significant savings.
The Golden Visa allows investors to sponsor their immediate family members, including spouses and children. Male children can be sponsored until the age of 25, while unmarried daughters and children of determination (those with disabilities) can be sponsored with no age limit. This often-overlooked benefit often acts as the deciding factor for hesitant investors, encouraging them to make the full transition and move their families to the UAE.
With minimal bureaucracy in Dubai, property investors can spend less time navigating complicated procedures and focus more on buying and managing property. With long-term residency guaranteed, investors can plan for the future with confidence and stability.
Golden Visa holders also gain access to the Esaad Card, a loyalty program issued by Dubai Police that offers various privileges. With this card, holders can enjoy exclusive discounts at shops, educational institutions, healthcare facilities, and housing options, enhancing their overall experience in Dubai.
The Dubai Golden Visa attracts a wide range of talents, from humanitarian pioneers and scientists to entrepreneurs and gifted graduates. However, a significant number of applicants are property investors, thanks to Dubai’s remarkable growth in the real estate sector.
To be eligible for this visa, applicants must meet specific criteria, including:
Additional conditions apply depending on the property type purchased, such as:
Completed Properties: Requires a residential or commercial property purchase of at least AED 2 million, supported by a registered Purchase Agreement from the Dubai Land Department (DLD). Multiple properties can contribute to this total.
Off-Plan Properties: Requires a residential property purchase of at least AED 2 million, with a Purchase Agreement from an approved developer.
Mortgaged Properties: Requires a Real Estate Unit Value Certificate from the DLD and a Search Certificate confirming no legal obligations. Loans are permitted if the outstanding amount doesn’t exceed AED 2 million.
All investments must be in designated freehold areas, permitting foreign ownership and full rights.
Property investors must have all the necessary documents to prove their eligibility for a Golden Visa application:
Dubai’s real estate market offers a diverse range of property types, locations, and price points. The eligibility requirements for a Golden Visa are flexible, allowing investors to choose any type of real estate, from off-plan apartments to fully furnished villas and mansions.
One major draw is Dubai’s exceptional real estate performance in recent years, with prices climbing rapidly, making it one of the fastest-growing markets globally. In Q1 2024, property prices surged by around 21%, with the all-residential property price index increasing by 20.71% year-on-year.
Rental yields are also a strong incentive, averaging 7.27%, which outperforms other major cities like London (7.03%), Paris (3.61%) and New York City (5.33%). This combination of impressive rental yields and capital appreciation makes investing in Dubai real estate both attractive and potentially lucrative.
Why go for the Golden Visa as a property investor in Dubai? Simple – it’s your key to long-term stability, tax benefits, and easy access to one of the world’s most lucrative real estate markets. With the Golden Visa, you can take advantage of Dubai’s booming economy and enjoy a high quality of life, all while benefiting from tax relief on foreign income and no capital gains tax. It’s a smart financial move with plenty of perks.
Ready to take the next step? Mulberry Homes is here to guide you through Dubai’s property market and help you unlock your investment’s full potential. Reach out, and let’s get started!
