Can a foreign company own property in Dubai?

Some clients express an interest in understanding the feasibility of corporate property ownership in Dubai and the steps to establish a property holding company for their investments in the region.

Corporate Ownership of Real Estate in Dubai:

It's important to note that while companies from jurisdictions like the Cayman Islands, British Virgin Islands, or Crown Dependencies are common choices for holding property assets elsewhere, they cannot directly own real estate in the UAE.

In Dubai, property ownership through a holding company must be registered within one of three sanctioned zones: Dubai International Finance Centre (DIFC), Jebel Ali Free Zone (JAFZA), or Ras Al Khaimah International Corporate Centre (RAKICC). Investors often prefer DIFC or RAKICC, owing to their common law frameworks, allowing varied share classes and access to DIFC common law courts.

Advantages of Holding Company Ownership in Dubai

Using a holding company for property ownership in Dubai offers several benefits:

  1. Tax Benefits: Holding companies in designated zones enjoy corporation tax exemptions.

  2. Privacy: The holding company's name appears on the title deed and in transactions, ensuring owner privacy.

  3. Asset Protection and Estate Planning: UAE holding companies can be integrated with broader asset protection and estate planning structures, including trusts and foundations, set up within or outside the UAE. It's common for trusts in jurisdictions like Jersey, Guernsey, or the British Virgin Islands to establish a UAE holding company for real estate investments.

  4. Portfolio Management: Holding companies facilitate efficient and cost-effective management of multiple property investments in Dubai.

  5. Limited Liability: They offer protection for personal assets against business risks.

  6. 100% Foreign Ownership: Permitted in designated zones, though non-UAE/GCC national owners are limited to purchasing freehold properties, similar to individual foreign owners.

Please get in touch with me for more information and recommendations for a company that can assist you with advice and company set up in the UAE

Business, FAQ, UAE Laws, PropertySteven LeckieDubai Real Estate Market, Property Investment Dubai, Holding Companies Dubai, Corporate Property Ownership Dubai, Dubai International Finance Centre (DIFC), Jebel Ali Free Zone (JAFZA), Ras Al Khaimah International Corporate Centre (RAKICC), UAE Real Estate Regulations, Dubai Property Tax Benefits, Foreign Ownership Dubai PropertyComment