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Can a RAKICC Offshore Company Buy Property in Dubai?
Yes, companies in RAKICC Offshore Jurisdiction can now buy property in Dubai.
Dubai is an investment hotbed and the real estate sector is the most sought after investment by the foreign & local investors.
Real estate investment in the UAE is one of the most lucrative business in the long run. Though the property prices are downwards, the market is expected to gain traction over the next few years.
The property ownership in UAE will definitely earn long term gains for the investors. Based on your interest you can choose from a wide range of freehold spaces like apartments, villas, office spaces, commercial spaces, etc.
Buying a Property in Dubai with an Offshore Company
As a result of signing a Memorandum of Understanding (MoU) between the Dubai Land Department (DLD) and RAKICC, Offshore companies registered with RAKICC are now permitted to own freehold property in Dubai.
Apart from RAKICC, only Offshore Companies registered in the Jebel Ali Freezone (JAFZA) had the eligibility to purchase a freehold property in Dubai.
Which Business Types can own a Property in Dubai?
The following types of companies can own property in Dubai under some conditions. Foreign investors and companies can buy property in Dubai only in special designated ‘Freehold’ areas.
1. LLC and Private Joint Stock Companies
Onshore companies incorporated in Dubai such as the Limited Liability Companies and Private Joint-Stock Companies, with non-UAE or GCC shareholders can buy property in the freehold areas.
2. Freezone Companies
Freezone companies registered in Dubai are eligible to purchase property in the freehold area under certain regulations. However, Freezones from other emirates is not allowed to buy property in Dubai.
There are certain conditions for Freezone companies in Dubai to own a Property.
- A Freezone company can only buy residential freehold property in UAE
- The residential freehold property purchased should be put for self-use
- A company cannot rent out the property and earn rental income from the same
Purchase of Properties in Abu Dhabi by RAKICC Offshore Companies
RAKICC Companies can also invest in the Abu Dhabi property market. Real estate investment is one of the best ways to safeguard your assets and maintain your confidentiality as the owner information is protected in the UAE.
The new move has given Offshore companies registered in RAKICC to expand their business opportunities to Dubai and Abu Dhabi through property ownership. Privacy and security are two key benefits of purchasing a property through an Offshore entity.
The process of acquiring your property is relatively simple steps. All you need is to get a No Objection Certificate from the RAKICC Authorities and present it to the Dubai Land Department (DLD) and get your property registered under your company name.
Main Features and Advantages of Purchasing Property by a RAKICC Offshore Company
One of the greatest advantage of RAKICC company to purchase property in Dubai & Abu Dhabi is the non-requirement of any legalization of company documents.
In the case of a foreign company there requires document legalization that is pricey as well as time-consuming.
The RAKICC Offshore jurisdiction is known to the UAE mainland authorities as well as the banks in UAE. So there will not be any hurdles in terms of opening a bank account or registering property in Dubai or Abu Dhabi.
As Offshore companies are completely exempted from taxation in the UAE, the revenue generated from the properties by the RAKICC Company is not taxable.
Also, there is no financial reporting or any audit required for Offshore company in the UAE.
Certain documents that are required in the Application:
- Relevant incorporation certification and the business trade license
- A certificate of incumbency valid for six months
- A good standing certification
- Business current memorandum, and all relevant articles of association, including all amendments
- Formal identification forms and documents
- A No Objection Certificate (NOC) from the developer. This must be valid for at least a month
The eligibility to purchase property in Dubai by RAKICC Offshore companies is expected to see more new registrations for RAKICC Companies to hold property in Dubai freehold areas.
The MoU is not a legally binding document. The rules and regulations of the concerned Freezones have not been amended yet, so it is not yet clear how RAKICC companies will be able to dispose of the registered properties.
With the changing residency rules like the long term visa issuance, relaxed property purchase regulations, easy business setup through Freezones, UAE is establishing itself as an investor-friendly destination of the world.