Property Ownership: Personal vs. Company Name
Buying a property in Dubai or UAE in the name of a free zone company or RAKICC offshore company.
This page is only for information and does not constitute a formal legal advice. For a tailored advice regarding Dubai or UAE residency, please contact us.
Income Tax
Personal name
0%
Company name
Corporate tax 9% on profits over AED 375,000. If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Capital Gains Tax on sale
Personal name
0%
Company name
Falls under Corporate tax if the company makes a profit from sale: 9% on profits over AED 375,000.
If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Inheritance tax
Personal name
0%
Company name
May arise in your home country or in the country you are a tax resident.
Does it qualify for a 10-year Golden visa?
Personal name
Yes, minimum value AED 2 million, equivalent of GBP 400,000 or USD 545,000. Can be mortgaged, but with AED 2 million is based on the unmortgaged equity.
Company name
No, has to be owned by a person. However, if the person’s share in a company is valued at AED 2 million, could potentially qualify for a Golden visa as a company investor, not a property investor.
Does it qualify for a 2-year Property Investor visa?
Personal name
Yes. There is no minimum value in Dubai.
Minimum value outside Dubai is AED 375,000, equivalent of GBP 75,000 or USD 100,000.
Can be mortgaged, with the unmortgaged values as above.
Company name
No, has to be owned by a person.
Will and inheritance
Personal name
Has to go through a probate and may be subject to Sharia law.
Company name
The property is owned by the company, so instead shares are transferred to heirs in a business succession process rather than a probate.
Property in a personal name
Property in a company name
Income tax
0%
Corporate tax 9% on profits over AED 375,000. If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Capital Gains Tax on sale
0%
Falls under Corporate tax if the company makes a profit from sale: 9% on profits over AED 375,000.
If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Inheritance tax
0%
May arise in your home country or in the country you are a tax resident.
Does it qualify for a 10-year Golden visa?
Yes, minimum value AED 2 million, equivalent of GBP 400,000 or USD 545,000. Can be mortgaged, but with AED 2 million is based on the unmortgaged equity.
No, has to be owned by a person. However, if the person’s share in a company is valued at AED 2 million, could potentially qualify for a Golden visa as a company investor, not a property investor.
Does it qualify for a 2-year Property Investor visa?
Yes.
There is no minimum value in Dubai.
Minimum value outside Dubai is AED 375,000, equivalent of GBP 75,000 or USD 100,000.
Can be mortgaged, with the unmortgaged values as above.
No, has to be owned by a person.
Will and inheritance
Has to go through a probate and may be subject to Sharia law
The property is owned by the company, so instead shares are transferred to heirs in a business succession process rather than a probate.
Property in a personal name
Property in a company name
Income tax
0%
Corporate tax 9% on profits over AED 375,000. If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Capital Gains Tax on sale
0%
Falls under Corporate tax if the company makes a profit from sale: 9% on profits over AED 375,000.
If you pay yourself from your company, income tax may arise outside UAE, such as in your home country or in the country you are a tax resident.
Inheritance tax
0%
May arise in your home country or in the country you are a tax resident.
Does it qualify for a 10-year Golden visa?
Yes, minimum value AED 2 million, equivalent of GBP 400,000 or USD 545,000. Can be mortgaged, but with AED 2 million is based on the unmortgaged equity.
No, has to be owned by a person. However, if the person’s share in a company is valued at AED 2 million, could potentially qualify for a Golden visa as a company investor, not a property investor.
Does it qualify for a 2-year Property Investor visa?
Yes.
There is no minimum value in Dubai.
Minimum value outside Dubai is AED 375,000, equivalent of GBP 75,000 or USD 100,000.
Can be mortgaged, with the unmortgaged values as above.
No, has to be owned by a person.
Will and inheritance
Has to go through a probate and may be subject to Sharia law.
The property is owned by the company, so instead shares are transferred to heirs in a business succession process rather than a probate.
Company ownership Questions and Answers:
Will I pay tax if I rent it out if I own a property in my name?
If you own a property in your personal name and receive rental income, it won’t be taxable in the UAE because there is no income tax. It may be added to your personal tax liability in your home country or in a country where you are a tax resident.
Will I pay tax if I rent it out if I own a property in my company name?
Income received by a company is subject to a UAE Corporate tax of 9%, but only for profits above AED 375,000, equivalent of GBP 75,000 or USD 95,000.
Will I pay tax on money paid to myself from my property holding company?
If you pay yourself a salary or dividends, there is no personal income tax in the UAE, but there may be tax liability in your home country. If you repay your director’s loan to yourself, this is not income and wouldn’t be tax liability in many cases, but you need to check with your country. For example, the UK does not tax a repayment of director’s loan made during the relevant company’s financial year (but UK does tax dividends and salary, even from abroad, if you remain a UK tax resident or taxpayer). Please note this is intended for a general information purpose and does not constitute a tax advice.
Will I pay tax when buying a property?
Yes, 4% tax in Dubai, 2% in Abu Dhabi, 2% in Ras al Khaimah. In any name, personal or company.
Will I pay Capital Gains Tax when I sell my property?
There is no Capital Gains Tax in UAE, so you won’t pay it if you sell a property owned in your personal name. You may incur a personal CGT in your home country or a country of your tax residency.
Will I pay Capital Gains Tax when I sell a property owned by my UAE company?
If your company sells it at a profit, then it will be liable for Corporate tax 9% on profits more than AED 375,000. If you then pay yourself dividends from your company, to benefit from the profit made from property, you won’t incur a personal income tax in the UAE but have to check with your home country about foreign income if it taxes your worldwide income.
Is there Inheritance tax?
No, there is no inheritance tax in UAE. There may be some fees to transfer ownership to another person’s name.
Can I buy a residential property in the name of my free zone company, as an investment to be rented out?
The broad answer is Yes, although can depend on a free zone and where the property is located (and a property must also be in a designated freehold area). For example, a company registered at IFZA or DMCC free zone in Dubai can own a property in Dubai (within a freehold area). A company registered at Abu Dhabi's Masdar City Free Zone can also own a property in Dubai (within a freehold area).
What types of property can I buy and where?
Foreign nationals can buy in designated "Freehold Areas" in Dubai and UAE.
Pros and Cons of buying in a company name
The pros are ownership not in your personal name, so it is protected by confidentiality and there is no personal tax lability in the UAE on rental income; there is no capital gains on selling it, and no inheritance tax (other than some transfer fees). The downsides are annual trade licence fees and corporate tax 9% if your company makes AED 375,000 profit, such as from rental income or other business activities. If you pay yourself dividends from your company, they won’t be taxed in the UAE but may be taxed in the country of your tax residency/citizenship. Also, if you own both the business and the property under the same company, your liability may not be limited between these two points, so if something goes wrong with the business, such as debt, the property could also be affected. You cannot use a company property to qualify for a property owner visa or a Golden visa based on real estate (for that, it has to be in your personal name).
How do I get Emirates ID and a bank account?
We can help with the Emirates ID process, we have also a page here on how to do it yourself. For a business account, there is a digital WIO bank with multi-currency accounts (like Wise or Revolut) once you have your Emirates ID. Emirates NBD bank offers business accounts, including for non-residents without Emirates ID, link here.