How to become a tax resident in Dubai, UAE and what are the advantages
The tax-free haven of the Emirate of Dubai is gaining more and more popularity among the representatives of private businesses and individual entrepreneurs, who wish to live and work in a comfortable environment with minimal tax payments. It is not a secret that the features of the jurisdiction provide the exemption from both income taxation of private persons and corporate taxation of companies. There are no taxes on income, taxes on income from capital, taxes on the selling of the properties, inheritance taxes and etc.
Due to such specifics, the jurisdiction of Dubai competes successfully with the traditional tax havens all around the world. As a nice bonus for private business there is the possibility to optimize the taxable base at the international level via international taxation agreements. Moreover, the jurisdiction is not included in the "black" offshore lists of the international organizations which fight against money laundering.
The advantages and opportunities of the tax resident status in Dubai, UAE
First of all, it is necessary to list the documentation which may be required for obtaining a residence visa, in particular:
- Copies of valid foreign passports;
- Copy of marriage certificate;
- Copies of birth certificate of children.
This set of documents is standard and can be extended depending on each specific situation.
International experts identify a number of advantages that are provided in the United Arab Emirates by the tax resident status. Among them one can single out the following features:
- Safe and comfortable living for residents and members of their families;
- High level of education and availability of the advanced educational institutions;
- Tax privileges for those holding the tax resident status, including the legal persons;
- Possibility to obtain a residence visa for all family members;
- Right of freedom of movement on the territory of the Persian Gulf States;
- Great perspectives for business development and etc.
Ways to obtain a residence visa in Dubai
There are several simple but effective ways to obtain a tax resident status in Dubai, in particular:
- Obtaining a visa via registering a local company;
- Obtaining a visa via acquisition of the immovable property on the territory of the Emirate;
- Visa approval on the basis of an employment contract.
Each of these methods has its own peculiarities and requirements. Let’s consider in more detail the most popular ones.
Obtaining a visa via registering a local company
This method can be divided into several sequential steps, which include the following operations:
- Submission of application with all the relevant documentation;
- Registration of a local company in the chosen jurisdiction (free trade zones);
- Visa application for owners, company executives and members of their families.
It should be noted that the registration of a company on the local market of the United Arab Emirates – it is the opportunity to obtain an investor visa for owners and work visa for employees. Besides the main advantages of this method one can include the fact that to obtain visa in UAE it is not necessary to carry out real economic or commercial activity in the territory of the Emirate. In other words, you can register a local company only for the purpose of obtaining a visa for yourself and for members of your family.
Residence visa is issued within 2-3 weeks, and the validity period of the visa depends on the legal status of a registered company (in average visa is issued for 2-3 years with further extending).
Obtaining a visa via acquisition of the immovable property on the territory of the Emirate
The real estate market of the United Arab Emirates shows a relative stability and is a little bit subjected to the external influences and global financial crises. These particular indicators have provided the inflow of the foreign investors and large-scale development of building in Dubai. Experts say that real estate in Dubai, regardless of the category, has a stable tendency to rise in price, what makes it a great investment tool.
Foreign citizens are allowed to purchase real estate of any category and class in Dubai. The only restriction is the specialized territories, where such transactions are permissible. Land lots of these categories can be acquired only by citizens of the country. All the other property possesses a "Freehold" status. In fact these are almost all new areas, which are allocated for investment construction.
The real estate market of the Emirate of Dubai is ready to offer both the apartments of economy class, and luxury dwelling on the coast. It all depends on your wishes and financial possibilities.
Changes in the current legislation became an important addition to the purchasing of property in UAE by foreign citizens, and in particular it is the introduction of a state Register of testaments. If in the past, the foreign businessmen, who invested in Dubai real estate, were anxious due to the fact that hereditary right was governed by the Shariah, today the situation is different. Registration of a testament in the country register allows the owner not to worry about who will obtain the property after his death, and the rights of heirs are protected at the legislative level.
As to the obtaining a tax resident status via the purchasing of real estate, there are certain conditions which are required to be fulfilled. In particular, the purchased real estate property must cost at least 1 million Dirhams, and the monthly income of the applicant for obtaining visa must be at least 10 thousand Dirhams. Those who meet the stated requirements, are granted a residence visa for one year with the possibility of further extension.
Residence permit in the UAE, or the status of a tax resident of the UAE – it is your guarantee to freedom of residence, education, medical treatment, and free entering and leaving the territory of the country. In the case of possessing the status of a tax resident, you get a whole set of indisputable advantages, ranging from the favorable climatic conditions and up to the preferential tax treatment. Now you can come to the United Arab Emirates whenever you need, and moreover you can get education, carry out labor and entrepreneurial activities in the territory of the country without the restrictions by the immigration authorities.
It should be noted that the conditions of obtaining a residence visa in the UAE are quite simple and attractive for foreign citizens. The only restriction for the visa holder is the prohibition of being outside of country for 6 months. If you arrive to the country for at least 1 - 2 days every 6 months – the status of a resident of the UAE will not be lost. To obtain a residence visa in the UAE you don't have to know necessarily all the details of the immigration and corporate legislation of the country – just use the “contact us” form and get free assistance from our qualified experts located in Dubai.