Dubai is home to one of the most desirable real estate markets in the world. With a large and growing expatriate population, there is much demand for all kinds of property across the emirate.
Not only does this present an opportunity for profit by holding and selling real estate, but also by owning and renting properties on a short-term or long-term basis. When buying real estate out here, investors have several choices. You are free to purchase property as an individual or through a UAE-registered company.
This article explores key considerations to answer the question – can an offshore company own property in Dubai? So, if you’re looking to build or add to your property portfolio in the UAE, here’s how to get started.
What is an offshore company in Dubai?
In short, an offshore company is one that is registered outside the home jurisdiction of its directors or shareholders. In this case, the offshore company is incorporated in Dubai.
While having many potential uses, individuals commonly register offshore companies in Dubai to hold and manage real estate. Doing so allows owners to benefit from Dubai’s legal structures, property regulations and tax regimes.
Offshore companies are particularly popular with high-net-worth individuals, wealthy families, entrepreneurs and large multinational organisations.
Can an offshore company own property in Dubai?
Yes. Offshore companies can own property in Dubai. However, they are only able to do so if registered within permitted free zone authorities. Companies incorporated in offshore jurisdictions are also only able to own and manage property within certain areas of Dubai.
As well as purchasing real estate in designated areas, offshore companies may also be required to get approval from the Dubai Land Department and register the title deed with the authority.
The type and location of property that an offshore company in Dubai is permitted to own will depend on its legal structure and the jurisdiction in which it is registered.
Areas in Dubai where offshore companies can own property
Offshore companies in Dubai are typically permitted to purchase and own freehold villas, apartments and commercial properties in numerous designated areas throughout the emirate, including:
- Arabian Ranches
- Business Bay
- Downtown Dubai
- Dubai Marina
- Jumeirah Lake Towers (JLT)
- Meydan City
- Palm Jumeirah
- The Lakes
- Victory Heights
Benefits of owning property using an offshore company in Dubai
1. Asset protection
Purchasing property through an offshore company separates the assets you hold from your personal liability. This shields any property held by the offshore company from personal legal or financial issues while protecting you against any similar issues affecting the property.
2. Easy management
All property held by an offshore company can be easily transferred throughout the company ownership structure. It is not impacted by lengthy and complex inheritance and probate processes.
3. Tax advantages
There is no corporate or income tax to pay on real estate profits in the UAE. This includes revenues from sale or rental income. There is also no property sales tax or capital gains tax to be paid.
4. Privacy
As property is held in the name of the company and not the individual, offshore companies in Dubai offer an extra layer of privacy in your business dealings. This allows you to keep owner, director and shareholder details confidential when purchasing or transferring ownership of property in the UAE.
5. International freedom
Offshore companies in Dubai can operate from almost anywhere in the world. This allows you to manage your property portfolio and take advantage of the UAE’s welcoming and supportive business environment without the need to physically relocate.
How to start an offshore business in Dubai
When you start an offshore company in Dubai with the team at Creative Zone, we can have you up and running in just a few simple steps. Get in touch to find out more.
Step 1: Choose a company name
There are a few key things to keep in mind at this stage – many that would not apply anywhere else in the world.
Be aware that you must abide by a strict set of naming conventions. In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step 2: Gather key documents
When applying to start an offshore company in Dubai, you will need to submit several documents. This includes proof of address and ID for all shareholders and directors.
Step 3: Submit your application
With your documents in hand, you are now ready to apply to incorporate your offshore business. This application is made directly to the free zone authority in which you wish to be registered. The team at Creative Zone can help to determine the free zone that is right for you and liaise with all relevant authorities on your behalf throughout the application process.
Step 4: Open an offshore bank account
While you cannot conduct any business activities on the mainland via an offshore company in Dubai, you are able to access the UAE’s banking system. That said, opening a bank account in Dubai is not always a straightforward process for non-GCC citizens. To ease the process, the team at Creative Zone will take the time to understand your precise requirements before advising on the best financial institution to meet your needs.
Why work with Creative Zone.
While it’s true that offshore companies can own property in Dubai, to do so you must first navigate the UAE’s company formation process. This can be a complex undertaking if you are new to doing business in the region.
That’s why selecting the right partner is a critical step when looking to launch or grow a business out here. As the most trusted advisor in the Middle East on all things relating to business setup in Dubai, Creative Zone has been empowering entrepreneurs and SMEs with comprehensive support since 2010. With a strong reputation for assisting businesses locally and globally, we offer a complete range of solutions for all your business needs.
When you work with us, you get fast, reliable and unbiased advice on your unique business setup requirements. We can help you choose the right kind of license for your business activity and take you through the entire process from start to finish.
We’re here to assist every step of the way. No matter your chosen activities, legal entity or visa requirements, we’re on hand with support, guidance and expertise. So, if you’re looking to lay the foundations for life in the UAE, Creative Zone is your ideal starting point.
Contact us today to kickstart your business in Dubai.
