Client Profile
Our client, an individual investor and tax resident in an EU country with a high-tax environment, sought to capitalize on Dubai’s booming real estate market. Recognizing the city’s lucrative opportunities for both property resale (flipping) and rental income, they aimed to build a portfolio of high-yield apartments in prime locations.
Challenge
The client’s key objective was to enter the Dubai real estate market in a way that minimized tax liabilities while maximizing returns. Given the tax implications in their home country, they were particularly interested in establishing a tax-efficient structure that would allow profits to accumulate in the UAE, facilitating reinvestment into additional property acquisitions. Additionally, they needed support in identifying suitable properties for investment, understanding UAE-specific real estate regulations, and ensuring compliance with local requirements for foreign investors.
Solution Provided
Our team provided a comprehensive suite of services to support the client’s real estate investment journey in Dubai:
- Initial Consultation on Company Structure
We assessed the client’s investment goals and recommended a suitable property holding company structure to maximize tax benefits, especially favorable given their European tax residency.
- Collaboration with Legal and Tax Advisors
Our team coordinated closely with the client’s lawyers and tax advisors to ensure the investment strategy aligned with both local and international tax regulations.
- Property Location Scouting
We collaborated with reputable real estate agencies, pre-selecting a shortlist of prime properties that met the client’s criteria for investment. This proactive approach allowed the client to make informed decisions quickly, securing high-potential assets in desirable areas.
- Company Incorporation and Bank Account Opening
We managed the setup of the property holding company in Dubai, including assistance with bank account opening for smooth financial operations.
- Investor Visa Acquisition
To facilitate easy entry and residency in the UAE, we guided the client through the investor visa application process, allowing them to oversee their investments personally.
- Real Estate Advisory
We provided specialized advisory on UAE real estate laws, covering aspects such as property acquisition, rental regulations, and compliance with local requirements.
- Payment Processing and Compliance
Our team assisted with payment processing, including Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, ensuring secure and compliant transactions.
- Accounting and Tax Compliance Services
We established a reliable accounting framework to manage ongoing financial activities and ensure full compliance with UAE tax regulations.
This end-to-end support allowed the client to focus on their investment strategy while we handled the setup, compliance, and operational logistics.
Results Achieved
Within a year of establishing the property holding company, the client successfully acquired, rented, and sold multiple properties in prime locations across Dubai. With our assistance in property scouting and selection, they secured high-yield apartments ideal for both short-term and long-term rental income. Additionally, two properties were sold for a substantial profit, highlighting the tax efficiency of corporate ownership in Dubai, a tax-friendly jurisdiction where property rental and sales profits are subject to a corporate tax rate of just 9%. This structure enabled the client to avoid the higher tax burden typically imposed by their home country in the EU, allowing them to reinvest profits into new real estate opportunities within Dubai.
Client Feedback
The client expressed satisfaction with our comprehensive support and expertise, which made their entry into Dubai’s real estate market smooth and efficient. They appreciated the favorable tax environment provided by corporate ownership in the UAE, noting that it contributed significantly to their overall profitability and growth potential. The investor is now well-positioned to continue expanding their portfolio, benefiting from Dubai’s competitive real estate market and robust regulatory framework.
Why Choose the UAE for Property Investment?
Key Advantages Include
Corporate Tax Benefits
Rental and sale profits are subject to a corporate tax rate of just 9%, providing a highly competitive tax rate compared to many other jurisdictions. UAE’s tax framework supports reinvestment and growth for property investors.
No Capital Gains Tax
The UAE does not impose capital gains tax, allowing investors to retain more profit from property sales.
Limited Liability Structure
Setting up a limited liability company (LLC) shields personal assets, ensuring that property-related liabilities do not impact the investor’s wealth.
End-to-End Setup Support
Our team manages all aspects of setup, from company incorporation to bank account opening, ensuring a smooth entry into the UAE market.
KYC and AML Compliance
Dubai’s regulatory framework for property transactions prioritizes secure and compliant operations, providing investors with peace of mind.
Easy Reinvestment
The UAE’s favorable tax and regulatory environment enables investors to reinvest profits into additional assets, fostering portfolio growth.
Flexible Real Estate Market
Dubai’s real estate sector offers opportunities for both short-term and long-term rentals, accommodating diverse investment strategies.
