How to obtain a Dubai Golden Visa through real estate investment

Approximately 4,300 Indian millionaires are expected to move abroad in 2024, with a majority of them preferring to relocate to Dubai, the UAE, according to a recent Private Wealth Migration Report by Henley & Partners. Here’s an overview of how the Golden Visa programme works.

Application process

The most popular way of applying for UAE Golden Visa for long-term residency in Dubai is through real estate investment. A minimum of AED 2 million (around ₹4.57 crore) investment is required to be eligible for Golden Visa.

“Golden Visas are valid for 10 years and can be renewed thereafter. Once the requirements have been fulfilled, pending initial approval of the application, the successful applicant receives a six-month multiple-entry visa and travels to the UAE (United Arab Emirates) to apply for an ID card and undergo a medical check,” explained Rohit Bhardwaj, country head – India and director private clients at Henley & Partners.

“Thereafter, full approval is granted and the individual receives the residence visa. The processing time for the residence application takes over two months,” he added.

Buying real estate in Dubai also involves Dubai Land Department (DLD) fee of 4% of the value of the property. “This is to be paid immediately at the time of registration of the property,” says Karan Batra, a chartered accountant with operations in India and Dubai.

Other costs range from AED 4,000 ( ₹91,000) to AED 4,500 ( ₹1.02 lakh), which includes government processing fees. Often, developers in Dubai bear these costs to attract buyers. In fact, the Golden Visas can be directly secured with the help of property developers, who provide support throughout the process. You can also check with consultants and advisors for any further help.

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Certain skilled individuals can also apply for Golden Visa, without the need for investment. “The Golden Visa programme also targets individuals with specialized talents and skills, including scientists, C-Suite executives, researchers and creative professionals. This emphasis on attracting top-tier talent has boosted the visa’s popularity,” pointed out Abhishek Menon, executive partner – Middle East & Africa, Multipolitan, a global migration platform.

The issuance of Golden Visas is regulated by General Directorate of Residency and Foreigners Affairs in Dubai (GDRFAD).

There are other options also, but these are not allowed under Foreign Exchange Management Act (FEMA), which is overseen by the Reserve Bank of India (RBI). For example, the Golden Visa now allows taking loans to buy a property, but FEMA doesn’t allow it as it means taking leverage under foreign currency. Even buying under-construction property is under a grey area. “If the construction work exceeds the LRS payment, it may be seen as contingent tax liability, potentially breaching FEMA regulations,” said Vijay Thirumalai, co-founder of Goldwater Technologies, wealth-tech platform focusing on global mobility.

A fixed deposit of AED 2 million in a specified bank is also an option, but this is also now in the grey area.

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“It appears that investment in fixed deposit offshore does not specifically get covered in the list of permitted investments. At the same time, it is not covered in the list of investments that are not permitted,” said Prakash Hegde, aBengaluru-based chartered accountant.

The Golden Visa may not directly lead to citizenship. To apply for an Emirati passport, one has to live in the UAE for at least 30 years and citizenship may be granted to those who have demonstrated exceptional service. Also, proficiency in Arabic is mandatory.

Benefits of a Dubai Golden Visa

Getting a long-term, renewable residency of ten years in Dubai can be an option for wealthy Indians looking for a second home in an international centre like Dubai. For business owners with international operations, a Golden Visa can again come in handy, as Dubai is well-connected globally. For a Golden Visa holder, starting a company in Dubai is easier. Also, a Golden Visa holder can open a bank account remotely.

After the Golden Visa, one can live, work and study in Dubai or other cities of the UAE. Dubai also offers various tax benefits for individuals drawing a salary in Dubai or those running a business. For example, there is no personal income tax in Dubai. The corporate tax rate on profits in Dubai is 9%, but in certain free trade zones, there is no taxation.

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Also, a Golden Visa holder can stay outside the UAE for more than six months without worrying about his or her residence visa becoming invalid. Other residence visas require the individual to re-enter Dubai within six months to ensure the visa remains valid.

Golden Visa holders can sponsor family members, including spouses, children, and even domestic help.

Should you opt?

Dubai’s Golden Visa programme was launched in 2019, largely to boost demand for its fast-developing real estate market. The Golden Visa can be useful for global entrepreneurs seeking better tax efficiency and better connectivity with the rest of the world. It also provides a valuable option for wealthy individuals seeking a second home near India.