As the world’s economies gradually recover from the novel Coronavirus, Dubai’s real estate sector has shown remarkable resilience. In the early months of 2021, from January 1 to March 7, sales transactions registered with the Dubai Land Department totalled AED 16.10 billion (approximately US$4.4 billion).
Global investors, keen to diversify their portfolios, have increasingly recognised Dubai as a prime investment destination during the pandemic. In 2019, the Dubai Land Department (DLD) enhanced the appeal of this vibrant city by introducing two categories of residency visas for property owners and their dependents. This initiative has not only made investing in Dubai more attractive but has also opened the door to a new and exciting lifestyle for international investors.
What is a UAE Residency Visa?
The Property Investment Residency Visa caters to high-net-worth expatriates seeking residency in Dubai through property acquisition. Currently, investors can apply for either a three-year or five-year property residency visa, as facilitated by the Dubai Land Department (DLD).
Property owners are eligible to apply for a residency visa for themselves and their immediate dependants—including their spouses and children. This visa can be renewed indefinitely, provided the property ownership is maintained under the prevailing regulations.
What level of investment is required for a Residency Visa?
An investor can qualify for a three-year Residency Visa with a minimum property investment of AED 1 million (approximately US$250,000). For a longer, five-year Residency Visa, the required investment increases to AED 5 million (approximately US$1.4 million).
Regarding government fees, the cost for a three-year Residency Visa is currently around AED 14,000 (approximately US$4,000), while for a five-year Residency Visa, the fees are approximately AED 4,000 (around US$1,000).
Residency Visa Requirements in Dubai
Based on our discussions with the Dubai Land Department (DLD), the general eligibility criteria for obtaining a Residency Visa are as follows:
Individual Ownership
- The property must be owned directly by the individual applying for the visa. Ownership through a corporate entity does not qualify for a Residency Visa application.
Title Deed Requirement
- The property ownership must be complete, evidenced by a title deed issued by the DLD in the owner’s name. Consequently, buyers of off-plan properties are ineligible to apply for a Residency Visa until the property is completed and the title deed issued.
Financial Criteria for Visa Duration
- For a five-year Residency Visa:
- The property must be fully paid for and free from any financing. Only properties free of mortgages or other encumbrances are considered.
- For a three-year Residency Visa:
- The applicant can still be eligible if they have paid off at least 50% of their mortgage, or a minimum of AED 1 million has been settled with the mortgagee bank or seller.
Personal Presence and Legal Formalities
- Applicants must be physically present in Dubai to apply for the visa. The use of a power of attorney for these purposes is not permitted.
Health Insurance Requirement
- Applicants must have valid medical insurance that provides coverage within the UAE.
Multiple Property Ownership
- For those owning multiple properties, the combined value (as stated in the title deeds) must meet the minimum investment criteria to qualify for the Residency Visa.
These stipulations ensure that the process is transparent and that the rights and responsibilities of all parties are clearly defined, paving the way for a more structured and secure investment environment in Dubai.
Post-Issuance Conditions for the Residency Visa
After a Residency Visa has been granted, there are specific regulations and compliance practices that come into play to maintain the validity of the visa.
Property Restrictions
- The Dubai Land Department (DLD) will place a restriction on the property linked to the Residency Visa. This notation indicates that the property purchase was instrumental in acquiring the Residency Visa.
- The primary purpose of this restriction is to prevent the investor from selling the property during the visa’s validity period, thus ensuring the maintenance of the minimum investment threshold required for the visa.
Conditions for Property Sale
- If the investor wishes to sell the property during the visa term, the DLD will revoke the Residency Visa unless the investor procures a substitute property that meets the necessary investment criteria.
Residency Maintenance Requirements
- The property owner is required to visit Dubai at least once every six months to keep the visa active. This is a common requirement for all UAE Residency Visas and is intended to ensure that the visa holder maintains a genuine connection with the UAE.
Dubai as a Premier Investment Destination
As we look towards the future, Dubai continues to strengthen its position as a prime destination for affluent investors seeking property investment visas. The emirate offers a straightforward application process, devoid of stringent requirements such as language proficiency tests.
Advantages of Investing in Dubai
- Minimal Entry Requirements: The criteria to qualify for a property investment visa remain relatively minimal, making it accessible for many investors.
- Tax Benefits: With some nations considering increased taxation on the wealthy, Dubai’s Residency Visa options present a significant opportunity for potential tax savings.
- Luxurious Lifestyle: Investors can enjoy a high standard of living, complemented by abundant sunshine, beautiful seas, and a host of luxury amenities.
Pathway to Emirati Citizenship
In 2021, the Dubai Government introduced the possibility of Emirati citizenship for property investors and their dependants among other categories. This opens up new avenues for investors seeking not just residency but also citizenship.
- Separate Legal Requirements: It is important to note that the criteria for citizenship are distinct from those for the investor visa. Detailed information on this will be covered in an upcoming Law Update article.
Secure Dubai Investor Visa with Expert Guidance
As Dubai continues to offer appealing incentives for property investors, understanding the nuances of investment visas and potential pathways to citizenship is crucial. Navigating these opportunities effectively requires expert legal assistance to ensure compliance and optimise benefits.
Davidson & Co. Law Firm in Dubai is your ideal partner in this journey. With a deep understanding of local laws and regulations, our top law firm is perfectly positioned to guide you through every step of the investment and visa application process. Whether you’re aiming for residency or considering citizenship, we’re here to help you make informed decisions that align with your financial and lifestyle goals.
Contact Davidson & Co. today to schedule a consultation and take the first step towards your new life in Dubai.
