The UAE Property and Investment

VisasBy: Camille Paldi

CEO of FAAIF

Property Visa

• From 01 June 2009, the UAE has implemented a new system of residence visas for UAE property owners, whereby which property owners can stay in the UAE for up to six months at a time.

• The property visa can be renewed indefinitely, but the visa

holder must exit the UAE each time to re-apply.

Property Visa

• The cost of the six month visa has been changed from 2000 AED to 1,100 AED from 1 August 2014.

• The Developer cannot guarantee the visa, but can apply

for the visa on the owner’s behalf to the Department of Naturalization and Residency, which makes the final decision.

Property Visa

• Ministerial Decision No. (281) of 2009 amending some provisions of the Executive Regulations of the Entry and Residency Law for Entry and Residency of Foreigners was issued at the federal level to specify the rights and obligations of property owners in relation to residency visas.

Property Visa

• The amendment to Article 33 states,

“Owners of built-in properties can stay for six months from the date of entry into the country. On the expiry of this period, the owner pledges to depart for his homeland or any of the GCC countries. He will only be allowed to enter the country again after meeting the required conditions.”

Property VisaAccording to the new Article 34, the owner should submit a multi-trip entry visa in regards to the property as per the following conditions:

• The property should be built-in (complete) and in this case doesn’t include owners of vacant lands, plots, or off-plan units;

• The owners should obtain a title of the property from the property registration authority in the emirate concerned.

Property Visa• The Unit must be wholly owned by the concerned person.

• The value of the Unit should be at least AED 1 Million (USD$270,000.00).

• The Ministerial Decision did not clarify the basis on which the property is to be valued, however, the most practical way to value the property is by using the amount stated in the sale and purchase agreement or the purchase price.

Property Visa

• The Unit should be fit for accommodation and the property must be of an appropriate size to house family members in a reasonable ratio of people to square feet.

Property Visa

• The owner should have a fixed income of at least AED 10,000.00 (USD $2722.00) per month or its equivalent in foreign currencies whether inside or outside of the country.

• Not all sources of income are acceptable, but examples of an acceptable generated income in the UAE are interest from bank accounts and income coming from stock dividends.

Property Visa

• It is important to note that the property visa does not give the property owner the right to work inside the UAE.

• Direct family members including spouse and children can be included under the property owner’s sponsorship.

• UAE medical insurance is required for all applicants.

Property Visa

• Furthermore, joint property owners cannot apply for theresidence visa in contrast to the previous system, which allowed first name owner to apply.

• Previously, in joint-ownership cases, a residency visa was granted to the first named person on the title deed.

Property Visa

• Now, the applicant must be the only owner of the property.

• The exception is joint-ownership between husband and wife, where in which the husband as an applicant will be eligible with his family members for property visas.

Property Visa• Property visa holders under the old system much change their visa to

the new system from 01 June 2009 or they risk breaching UAE immigration laws and facing resulting penalties.

• The property visa is popular amongst Pakistanis, Iranians, and Russians.

• In the first six months of 2014, over 37 Billion AED was pumped into Dubai’s property market by over 140 nationalities.

Investor Visa• The UAE Investor Visa offers temporary residence, which lasts for a

maximum period of three years.

• It is a good option for foreign nationals seeking to establish their own business or to invest into an existing business in the UAE.

• The visa gives its holder authorization to live and work in the UAE provided the individual abides by all of the country’s laws and codes of conduct during the entire length of stay.

Investor Visa

• To qualify for the Investor Visa, the foreign national must deposit either 10,000 AED or 20,000 AED with the UAE government.

• Unlike other UAE visas, there is no requirement that the foreign national have a job offer from a UAE company.

Investor Visa

• The national must also prove that he/she has sufficient funds to make a significant investment into a UAE company or to create a business in the UAE.

• The UAE immigration authorities must approve the prospective investment in order for the visa to be approved.

Investor Visa

• When the visa is approved, the investor will obtain the visa from the UAE consulate and can immediately relocate to the country.

• The foreign national will also not be required to pay tax in the UAE.

Investor Visa

• While the visa is being processes, the Immigration Officer creates a pink slip.

• The pink slip allows you to enter the UAE on a 60 Day Employment Visa.

• The temporary visa allows you to enter the UAE for a medical test and finger printing.

Investor Visa

• The pink slip must be taken with your passport to the border to change the visa status.

Investor Visa

• Once you have reached resident status, you are not allowed to drive a car until you obtain a UAE Driver’s License.

Other Options to Obtain UAE residency visa

• Employer sponsorship.

• Family sponsorship.

• Incorporate a company or trade license and obtain your own residence visa.

camille@faaif.com