To protect your assets, make transfers easier, and manage taxes, purchase real estate in Dubai using an LLC. Find out how to register your business with DLD legally.

How to Buy Property in Dubai Like Smart Investors Do Under an LLC

Published On:
Last Upadte:
October 20, 2024

Are You Considering Purchasing Real Estate in Dubai?

A Limited Liability Company (LLC) is one of the most strategic ways to invest in real estate, regardless of whether you are a local or foreign investor. Given the UAE's stricter corporate governance regulations, this structure provides significant tax benefits, operational flexibility, and legal protection.

At CSPZone, we help investors effectively and legally structure their real estate deals. This article explains the benefits of using an LLC to buy real estate and walks you through the process of registering your business with the Dubai Land Department (DLD) correctly to guarantee complete compliance.

Are Foreigners Allowed to Own Real Estate in Dubai?

Yes, non-residents and foreigners are permitted to purchase real estate in specified freehold zones. In some regions, ownership is given completely and permanently. The following are some of the most desired zones:

  • Downtown Dubai
  • Palm Jumeirah
  • Business Bay
  • Jumeirah Lake Towers (JLT)
  • Dubai Marina

In certain regions, you can own real estate either directly or through a corporation formed in the UAE. For many investors, the LLC structure provides long-term benefits that personal ownership cannot match.

Which Companies Are Allowed to Own Real Estate in Dubai?

You can buy real estate using a variety of corporate entities, including:

  • LLC (Limited Liability Company): The most adaptable and frequently suggested business structure for real estate investors. It facilitates joint ownership, keeps your assets segregated, and greatly simplifies property management and future transfers.
  • Free Zone Businesses: Ownership in particular regions is permitted in some free zones. However, unless DLD gives its prior consent, these businesses can be subject to restrictions outside of their jurisdiction.
  • Holding Businesses: Perfect for investors that oversee several properties. They facilitate succession or exit planning and offer a unified ownership structure.
  • Foundations: Usually utilized by wealthy people who are concerned with long-term legacy planning and asset protection. Although difficult to set up, it is effective for wealth structuring.

Why Use an LLC to Purchase Real Estate?

The following are some long-term advantages of purchasing real estate under a corporation structure:

  • Asset Protection: Your assets are not at risk in the event of a dispute or liability; only the LLC is.
  • Simple Property Transfer: By selling shares, real estate can be moved without the hassles of inheritance.
  • Professional Management: The business name can be used to track rental revenue, costs, and upkeep.
  • Visa Eligibility: Depending on the type of licensing, LLC shareholders may be eligible for UAE partner or investor visas.
  • Corporate Compliance: Under UAE corporate tax law, LLCs are compliant with audit and tax filing obligations.
Important Information:
The UAE Golden Visa does not apply to properties owned by a company. Only individually owned properties worth more than AED 2 million are eligible for the Golden Visa. LLCs must also file for corporate tax and pay license renewal costs, even if they don't make any money.

πŸ‘‰ Also Read: VAT and Corporate Tax Explained for Real Estate Holding Companies in the UAE

Detailed Instructions for Purchasing Real Estate Through an LLC

Step 1: Create an LLC

You can create a UAE mainland or free zone LLC remotely with the assistance of CSPZone. To start, you don't have to be in the UAE in person. After everything is finished, you will get your establishment card, MOA (Memorandum of Association), and business license.

Step 2: Choose a Freehold Property

Pay attention to locations where DLD permits corporate ownership. Palm Jumeirah, JLT, Marina, and Downtown are all well-liked by investors.

Step 3: List the Property With Your Business

Send the DLD your company's documentation. The property is legally registered under your LLC after verification.

How to Create an LLC with DLD to Purchase Real Estate

Establishing a business is insufficient. To be able to own real estate, you have to register your LLC with the Dubai Land Department (DLD).

1. Gather the Necessary Paperwork:

  • Trade license
  • MOA (Memorandum of Association) – If issued in English, translate to Arabic
  • Copy of passport
  • Emirates ID
  • Copy of UAE visa
  • Certificate of Good Conduct from Free Zone
  • Certificate of Incumbency
  • NOC from the Free Zone permitting investment in real estate

2. Translate Every Important Document

For essential legal documents, DLD mandates formal translations into Arabic. Certified translations can be provided by CSPZone.

3. Go to a Trustee Center for DLD

Visit a DLD trustee office in Dubai that has been authorized once the paperwork is ready. On behalf of DLD, these centers handle property and business registrations.

4. Cover DLD Charges

  • 4% of the property value is required for DLD property registration
  • Admin/trustee fees: around AED 4,000 to 6,000
  • Translation and attestation: approximately AED 1,500 to AED 2,500, depending on document volume

CSPZone can go with you or manage the entire procedure through a power of attorney.

Concluding Remarks

Using an LLC to invest in Dubai real estate is not only legal but also wise. You take charge, safeguard your private assets, and adhere to the UAE's cutting-edge legal system.

However, this structure necessitates document preparation, careful Arabic translation, and appropriate DLD registration. Here's where CSPZone's more than 15 years of experience can help β€” saving you money, time, and hassles related to compliance.

Are You All Set to Begin?

For a free consultation, contact CSPZone right now. We'll assist you in forming your LLC, managing DLD registration, and making sure your real estate investment is seamless, compliant, and secure for the future.

Ready to make your Dubai real estate investment?
Reach out to CSPZone today and let’s get started!

‍

Explore other articles

explore
Chat on WhatsApp
πŸ‘‹ Hi there! Need help?