UAE Residence by Investment: The Ultimate Guide

For decades, the United Arab Emirates (UAE) has been a magnet for high-net-worth individuals, entrepreneurs and global investors – all drawn to the combination of tax-free status, world-class infrastructure and the unmatched glamour of Dubai. 

While citizenship by investment was never an option, the UAE’s Golden Visa program – residence by investment (RBI) – was more than accommodating for most.

But times are changing and the recent introduction of a 9% corporate tax means that the UAE is no longer a pure tax haven.

So, what does this mean for investors? Is the country still the best place to establish a business or secure long-term residency?

That’s a complex question to answer, particularly at a time when, more than ever, smart offshore and tax planning is essential.

So, the Nomad Capitalist team has put together this in-depth guide to the different UAE RBI programs on offer.

We explore the pros, cons and strategic considerations for those looking to take advantage of a UAE golden visa and make the move. 

From billionaires and celebrities to everyday entrepreneurs, Nomad Capitalist has helped 2,000+ successful clients grow their wealth and increase their peace of mind. Whatever your situation, we can help you, too. Just reach out to us.

UAE Country Overview

The UAE is a federation of seven Emirates, consisting of Abu Dhabi (the capital), Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain. 

While each Emirate offers unique possibilities, the main ones that attract expats are Dubai and Abu Dhabi. 

Dubai is more focused on the entertainment lifestyle, while Abu Dhabi is a bit more ‘old money’, traditional, calmer and not so busy. 

The UAE has structured its foreign relations in a way that draws support and commercial cooperation from around the world. Its friendly, collaborative outlook and outreach make it a good ally.

It has one of the largest oil reserves in the world, but it has worked to diversify its economy so as not to have all its eggs in one basket. Its low-tax, business, development and entrepreneur-friendly policies draw people from all over the world.

The creation of thriving cities in the desert, with a very Western-friendly vibe, draws people from all over to a region of the world once seen as restrictive and repressive. 

It’s an excellent example of a predominantly Islamic state balancing its religious view with an open and expanding economy. 

Why the UAE?

Well known as an expat hotspot, the United Arab Emirates offers several residence-by-investment options. In 2018, it made several changes that have improved its residence program. Previously, only two-year permits were offered. 

Now, with the right skill set or investment amounts, you can achieve a five-year and ten-year visa. 

The UAE also used to stipulate that a foreigner could only own 49% of a company and had to partner with a UAE native who owned 51% of the company. 

However, they now allow for 100% foreign ownership of companies and offer long-term residence permits for those looking to start a business or who have significant business experience. 

The UAE strives to create an atmosphere that’s friendly to investors, entrepreneurs and those with specialised talents. The country has also built a reputation as being a tax-friendly country for high-net-worth expats.

The weather might be a concern for many, with dust storms and extreme temperatures in the summer months.

But Dubai, in particular, has created an atmosphere of high-tech living, yacht parties, fine dining and lavish apartments that significantly make up for the bad weather.

Ultimately, though, the UAE knows it needs to reach outward to draw people in. Its expat and business-friendly policies and programs definitely reflect that.

So, let’s discuss some of the residence options.

UAE Golden Visa – Residence by Investment

It should be stated upfront that the UAE rarely, if ever, grants citizenship. 

However, reports have surfaced that the government would allow citizenship to be granted to foreigners who meet some pretty unrealistic requirements.

These include having special talents and contributing to the development of the nation. 

In this scenario, citizenship is granted by royal or official decree and cannot be applied for. For now, if citizenship is your goal, you should look elsewhere. 

That being said, the UAE does offer several exceptional and valuable programs for residency through investment with one of the following options:

• Make a public investment of at least AED 2 million (10 years)
• Make a bank deposit of at least AED 2 million (10 years)
• Invest in real estate properties of at least AED 2 million (10 years)
• Set up an innovative business (5 years) (for entrepreneurs) 
• Be a person of outstanding specialised talents (10 years)
• Outstanding university students (10 years).

Residence by Public Investment

The first option is to make a public investment of at least AED 2 million (around US$544,000) in one of the following ways:

• A deposit of at least AED 2 million in an investment fund inside the country
• Establishing a company in the UAE with capital of at least AED 2 million
• Your investment must not be on loan.

You must also submit proof of medical insurance and a letter from the Federal Tax Authority stating that you pay the government at least AED 250,000 annually.

This will allow you to apply for a 10-year Golden Visa. The long-term visa can include your spouse and children, as well as one executive director and one advisor. 

It can also be extended to include business partners on the condition that each partner contributes AED 2 million.

Foreign Investors may apply for a multiple-entry permit for a six-month period while working to obtain their long-term visas.

Residence by Real Estate Investment

If you’re looking to get your residence permit through the purchase of real estate in the UAE, there are a few requirements. 

First, you must buy a property in a freehold area designated by the UAE. Only these properties can be considered for your residence application.

Second, your real estate investment must be worth less than AED 2 million. 

This can be under joint ownership with your spouse or with a business entity, but your personal investment portion must be at least AED 2 million. 

You may combine the purchase of more than one qualifying property, but again, the total payment must reach AED 2 million. 

There have been recent amendments that allow some commercial properties to be considered towards the AED 2 million requirement if they are located in a freehold area and are in your name and not your company’s.

In addition, in a case where you previously purchased a property, and the value has risen above AED 2 million, this will not qualify you for residency. 

The UAE will only consider the price of your investment, not the property’s current value.

The money must be paid in full. Moreover, if you plan to take a loan to purchase a property, you can only acquire it from specific local banks approved by a competent local entity.

It also cannot be a gifted property. You must show that you have made the purchase.

Once you have met the requirements, this Golden Visa is valid for a five-year period and can be renewed. 

The property rights in most UAE regions allow foreign ownership for 99 years, with an option to renew your residence permit as long as you maintain the requirements and have a clean record. 

Residence Through Company Formation

The UAE offers many advantages for startups and entrepreneurs depending on your qualifications and business type. There are three types of companies that you can set up. 

The first is an offshore company, which is very similar to an international business company (IBC), the kind you would find in the Seychelles or Belize. 

The second option is a free-zone company. It’s more expensive, but there are close to a dozen free zones around the UAE that offer the chance to start a 100% foreign-owned company. 

With the free-zone company, not only do you get a bit more flexibility, but you also have the potential to get a tax residence certificate as well as a residence permit and other benefits. 

There are certain rules that you must follow to keep your residence active. You don’t have to be in the UAE all the time, but you do have to check in a couple of times a year. 

The downside is that you need to have some kind of registered office there. At a minimum, you will need a hot desk in a co-working space.

This comes at a cost, so if you’re looking for an ultra-cheap residence or offshore solution as an entrepreneur, this is not the best option.

The third company you can set up is the traditional onshore company – a civil company. 

This is something that most people aren’t going to do. Most expats favour a free zone company as an onshore company brings more legal complexity. 

One benefit to an onshore company is that you can have your office wherever you want and can be based wherever you want. 

However, for most people who live the Nomad Capitalist lifestyle, it’s more hassle than it’s worth.

This category includes those with an existing project with a minimum capital of AED 500,000 (around US$136,000) or those who have the approval of an accredited business incubator in the country. 

Professionals with entrepreneurial experience are eligible to apply for a business visa to set up their own company in the UAE. Applicants can easily submit official documents online to obtain a business visa. 

This type of Golden Visa is valid for five years, with the option to renew. While setting things up, an entrepreneur is granted a multi-entry visa for six months, renewable for another six months. 

The long-term five-year visa includes your spouse and children, a business partner and three executives.

Residence for a Person of Outstanding Specialised Talents

The UAE also offers a ten-year renewable Golden Visa option for people with specialised talents. 

This includes researchers and specialists in the fields of science and knowledge, such as doctors, scientists and inventors, as well as creatives in the fields of culture and art. 

This visa can extend to your spouse and children. All categories are required to have a valid employment contract in a specialised priority field in the UAE.

Granting a visa is subject to the following conditions as specified on the UAE government website:

• Scientists must be accredited by the Emirates Scientists Council or holders of the Mohammed Bin Rashid Medal for Scientific Excellence.
• Creative individuals in culture and art must be accredited by the Ministry of Culture and Knowledge Development.
• Inventors must obtain a patent of value, which adds to the UAE’s economy. Patents must be approved by the Ministry of Economy.
• Exceptional talents must be documented by patents or scientific research published in a world-class journal.
• Executives must be owners of a leading and internationally recognised company or holders of high academic achievement and position.
• Doctors must submit an approval letter from the Ministry of Health and Prevention in the UAE to practice the profession of medicine.
• Scientists must submit a letter of recommendation from the Emirates Council of Scientists or a letter from the Secretariat of the Mohammed bin Rashid Medal for Scientific Excellence stating that the applicant has been awarded the Medal of Scientific Excellence.

Residence for Outstanding Students

Lastly, there is also an option for a five-year Golden Visa for outstanding students. 

To qualify for this residence permit, you must be an outstanding student with a 95% minimum grade average in a public or private secondary school. 

You can also qualify as a university student with a sufficiently high grade. This long-term visa also allows you to bring your family.

The Application Process for UAE Residence

The UAE has worked to make the residence application as simple as possible for expats. With more than 80% of its population coming from other nations, it’s in the UAE’s best interest to make the process as streamlined as possible.

Once you arrive in the country, you can visit one of their ‘typing offices’, where people fill out all the paperwork and help you meet and submit all the specific requirements met and submitted.Most passports allow you to travel visa-free into the UAE and stay for 30 days. For citizens of the countries that need to acquire a visa beforehand, once you arrive, you have either 30 or 90 days to procure your visa, depending on your country of origin.

If you’re seeking a residence permit as a public investor, real estate investor or talented professional, the UAE will grant you a six-month, renewable, multiple-entry visa in order to complete all the requirements for the permit.

If you prefer to start the registration before arriving in the UAE, there is also the option to complete much of the application process online. 

If you’re applying specifically to Dubai, it has its own portal for residence applications through the General Directorate of Residency and Foreigners Affairs (GDRFA) Dubai. 

To apply for any of the residence permits, you must first pass a medical examination to show you are medically fit and free from communicable diseases. 

You must then pass a security check and apply for an Emirates ID card.

If you’re applying for a real estate investment residence permit, you must provide the title deed, contract of sale and purchase, a copy of the property owner’s passport, your current visa and passport-sized pictures. 

Your six-month, renewable, multiple-entry visa will come in handy here in allowing you to find and purchase your property before you apply for the permit.

If you’re an outstanding student or person of specialised talents, you will be required to submit paperwork showing that you meet the specific requirements listed above.

If you’re applying for a business residence visa, the process is a bit more involved, but much of the application is completed online. You can apply and submit your business proposals and paperwork online. 

Each region has different initial capital requirements, with different types of businesses requiring specific paperwork. You can find all the details in our ultimate guide to setting up a company in the UAE.

Once the criteria are met, your application will be processed. This can take as little as three weeks but usually around four to six weeks.

Residence Permit Renewal

Most residence permits can be renewed if the in-country requirements are met and you have a clean record. You must renew within 30 days of the expiration of your permit. 

There are daily fees for staying in the UAE after your permit has expired, so be sure to start the process of renewal with enough time to process it.

If you’re not in the country when your permit expires, it’s possible to renew up to six months in advance.

In order to renew, you need to have the following:

• A sponsor with a valid residency permit
• An insurance card (mandatory in Dubai and Abu Dhabi)
• A renewed identity card issued from the Federal Authority or an original receipt that you have registered get a renewal
• Another medical fitness test for those above 18.

The following documents are needed: 

• Online application or application through a registered typing office for renewal of residency permit signed by the sponsor
• Original passport of the sponsored
• Photo of the sponsored.

Those sponsoring their families (spouse, children, parents, siblings, relatives of first and second degree) must present a:

• Copy of their husband or wife’s employment contract or company contract for investors
• Salary certificate from the employer stating the employee’s monthly salary
• Legalised marriage certificate
• Registered tenancy contract
• Latest utility bill.

Once these requirements are met, it takes up to three weeks to process. Then, your permit will be renewed for the period specified for your type of visa. t takes up to three weeks to process, and then your permit will be renewed for the time period specified for your type of visa. 

The Pros and Cons of UAE Residence

The UAE has worked to draw the attention of tourists, investors, businesspeople and talented scientists and artists. 

However, there are some things to consider when deciding if the UAE is a good fit for your lifestyle design. We explore the pros and cons below.

The Pros of UAE Residence

One of the top 10 freest markets: The UAE makes our list of the freest markets in the world. Oil revenues and strategic planning for tourism and business growth have allowed the UAE to have no personal income tax while providing a diverse and stable economy.

Expanding economy and good policy: As an entrepreneur, it’s always smart to look for places that are expanding and putting in place the policies that create growth. The UAE has done a great job of creating an environment that treats entrepreneurs and businesses well.

A quick, streamlined process for residency: With most of its population coming from other countries, the UAE is adept at residence permits. A permit can be obtained in as little as three weeks, and innovative online portals make applying a relatively easy process. 

Few in-country living requirements and easy travel: For the UAE residence permit, there are no serious requirements to live in the country to maintain your resident status. At a minimum, you must visit at least once every 180 days or twice a year. It has a state-of-the-art airport, and travel to and from the UAE is efficient from almost anywhere in the world.

Caters to the expat lifestyle: While it’s always a best practice to respect the local culture, the UAE has done a great job of maintaining its cultural and religious policies while also being more lenient with its expat population. It has more of a Western feel than most other Middle Eastern countries. English is widely spoken. It also offers great shopping, fine dining and excellent entertainment. Dubai, specifically, is known for its nightlife.

Safe for expats: Dubai is one of the safest cities to live in for expats. It has worked to create a safe atmosphere for women. For example, pink taxis are reserved for women only, with women drivers.

Great offshore banking options: With your residence permit, you have access to UAE priority banking. Not only will this be a great option for diversifying your finances, but it also opens up regional opportunities.  

Diverse economy: The UAE has diversified its economy so as to not rely solely on oil  – having done so, it will be better equipped to adjust once its oil reserves are used up, if worldwide oil needs change, or if there is another global recession. 

The Cons of UAE Residence

Climate: Always very hot, the UAE is almost unbearable in late summer when average temperatures are intense. If you don’t mind staying indoors to avoid the heat, or if you plan your travels in the warmer months, it can be manageable.

Expensive: If you’re looking for an inexpensive option for residency, this is not it. The UAE caters to a high net-worth expat market and has a relatively high cost of living. Its residency programs are more expensive than most other country’s offerings. 

No citizenship option: As a rule, the UAE does not offer citizenship. At least not yet. You can easily live there on renewable residence permits, but even if you are there for decades, don’t count on it leading to citizenship. 

If citizenship is what you’re seeking, we recommend looking into the fastest countries to get citizenship and 20 countries with no taxes where you can get citizenship.

Must renew residence visa regularly: While the UAE has worked to streamline the process for expats, and there are options for longer-term visas, it’s still a chore to submit all the paperwork for renewals.

No longer a corporate tax-free zone: The UAE’s tax-free status has been slowly diluted since 2018 when it introduced the 5% value-added tax. The new 9% corporate rate applies to income above AED 375,000 (around US$102,000), and contrary to the initial impression that free zone companies would be exempt, the facts suggest otherwise. 

Is UAE Residence by Investment for You?

If you’re looking for a safe place to take your family and a country that will not tax your worldwide income, the UAE could be a good fit. 

If you’re an entrepreneur looking for opportunities, the UAE is a sound strategic base that rewards innovation and offers access to the global market.  

Recent changes have extended its residency options, with long-term visas of five and ten years and 100% foreign ownership of companies. 

But the UAE is not perfect. The 0% corporate tax rate is now gone. So, if you’re planning to move your business there to legally avoid taxes, there may now be more suitable options.

There are a host of countries that offer more favourable tax regimes, even some in the European Union, that offer incentives on a par with traditional low-tax jurisdictions. See our list of the 12 European Countries with the Lowest Taxes for more information. 

UAE Golden Visa: FAQs

Go Where You’re Treated Best

The United Arab Emirates makes it simple enough to become a resident, provided you have the money to invest. 

You can buy a property, start a business or even deposit some money in a local bank for two years.

There are no physical presence regulations involved with a UAE Golden Visa, but if you do decide to move here and then extend your stay, you’ll get to enjoy some of the most immaculate infrastructure that the world has to offer.

This doesn’t mean the UAE is suitable for everyone, though. 

The introduction of various taxes over the last few years has made it less appealing for business owners. 

Those keen to enjoy a tax-free lifestyle must now seek options elsewhere. Those hunting for a second citizenship aren’t likely to find it in this Arab state either.

At Nomad Capitalist, we work with high-net-worth individuals to help them diversify and find the best locations to build their dream lifestyle. 

That might involve moving your business offshore, relocating to a tax-friendly jurisdiction or applying for a second citizenship.

Our clients are paired with experts in tax, investment strategy, asset protection and immigration to ensure they ‘go where they’re treated best’ based on their specific goals.