The recently introduced golden visa scheme is now underway with over 100,000 registrations in Dubai since its inception in October… should you be registering too?
A property investment of AED 2m will grant you, your spouse and children a renewable 10 year residency visa with the ability to live and work in the prospering emirates. This can be utilized via cash or loan providing a minimum of AED 2m capital is proven.
Let’s look at the benefits of relocating to UAE.
When considering lifestyle, Dubai is diverse enough to cater to the vast majority. Looking beyond the white beaches and towering skyscrapers, a deeper infrastructure boasting some impressive attributes is immerging.
Acute investment into its on shore education sector means you can now acquire a degree from over 120 countries. A feat not achieved anywhere else worldwide.
The Emirate has also seen continued expansion into its hospital framework resulting in the attraction of some of the industry’s leading minds. When considering services offered and overall level of medical care available, Dubai is advantageously positioned.
In addition, residents enjoy continuously low crime rates. The UAE has remained in the top three of the Numbeo global safety index for four years. An achievement the ruling bodies are determined to uphold with continued research and the announced expansion of its policing departments. A priceless consideration when determining a future family base.
From the investment outlook there are some compelling factors. Average net yields of circa 6% with zero capital gains tax is a comforting place to start. Considering the market age and its current position, the chance of significant capital appreciation also remains healthy.
Regardless of the recent and well publicized uptick, overall prices are still circa 15% below the peak of 2014. This is reinforced in the latest UBS global index report where Dubai remains identified as fairly valued. Given the emirates trajectory to date and the quality of community now being delivered, the current entry point may well prove an enviable one.
From a broader view, other factors to consider are the population incline and annual tourism statistics, recent transformation of local equity markets and government investment back into the emirates. The latest of which, Etihad Rail, connects the entirety of the UAE from the Western border of Abu Dhabi running inland and northeast to the tip of Ras Al Khaimah.
Although the golden visa remains renewable, the lack of ability to acquire full citizenship may prove a sticking point for some. Despite continued whispers, no changes are expected to be forthcoming in the interim. Nevertheless, with reference to the 2030 plan and general consensus moving forward, the idea of expats one day acquiring UAE citizenship is not inconceivable.
Additionally, the announced introduction of 9% corporate tax may appear unnerving. Scheduled for incorporation June 23, this will be applicable to mainland companies with a consumer base inside the UAE only and subject to an income threshold of above AED 375k.
Despite the initial alarm, this appears to be a method of bolstering global relations opposed to a change of the governments long term stance. A preliminary measure to ensure the UAE is not portrayed as a tax haven and remains excluded from global grey lists while causing minimal disruption to its existing structure. The inclusion of rather flexible deductible business expenses against the new tax poses as a prime example of this.
In comparison to similar residency by investment programs available, from Portugal to Turkey, the allure of Dubai appears to remain prevalent with ques at the doors of the visa office beginning to form at 6am. For many, reasons not to consider the Emirate as a relocation or investment destination are becoming more challenging to identify.
In addition to permanent residency, new visit visas have been introduced with potential investors now able to apply for a six month entry visa to assess firsthand if Dubai is in line with there requirements.
If you would like more information on available investment options or the idea of relocating to Dubai, feel free to get in touch.
Follow the below link for the summary of key points related to eligibility and application of the Dubai golden visa via real estate investment.
Adam Lewis
Head of sales, Dubai
