Does It Make Sense to Buy Property in Dubai Through a Company?
Written by: Marcus M. Araz, MBA, PhD · Updated:
For a single flat, usually not; buying in your own name is simpler and more tax-efficient. In the United Arab Emirates, an individual’s rental income from property is outside corporate tax whatever the amount. If you buy the same flat through a company, the rental income can fall under 9% corporate tax on annual profit above AED 375,000, on top of the company’s set-up and annual renewal costs. A company structure makes more sense when several partners buy together, when many properties are held, or when succession planning is the priority.
In your own name or through a company?
| Topic | In your own name | Through a company |
|---|---|---|
| UAE tax on rental income | None (Cabinet Decision 49/2023) | 9% corporate tax may apply on annual profit above AED 375,000 |
| DLD transfer fee | 4% of the price | 4% of the price |
| Set-up and annual costs | None | Company formation, registered address and annual licence renewal |
| Sale or transfer | Title transfer and DLD fee | The property or the company shares can be transferred; conditions depend on the registry and DLD practice |
| Co-ownership | Several people can be named on the title deed | Partners’ shares and rules are set out in the company’s articles |
| Succession | Without a will, UAE succession rules may apply; registering a will is advisable | Shares pass according to the company documents, which can make planning easier |
| Paperwork | Passport | Company documents, ultimate beneficial owner (UBO) declaration, bank account |
Which companies can hold title in Dubai
In areas open to foreigners, the Dubai Land Department (DLD) issues title deeds to certain types of company as well as to individuals. Companies set up in the UAE and offshore companies from approved registries are included. The documents the DLD requires differ by registry and company type; before setting up a company, confirm that your chosen structure can hold title in Dubai.
When a company structure makes sense
- Several partners: if family members or business partners buy together, shares and decision rules are clearly set out in the company’s articles.
- Portfolio: if several properties are managed under one structure, accounting and transfers become easier.
- Succession planning: who inherits the shares can be set in advance in the company documents. For a single flat, registering a will through official channels such as DIFC Wills Service is usually a simpler solution.
What to watch for
- Corporate tax: rental income that is tax-free when held personally can become taxable in a company. The reduced rate for free zone companies generally does not apply to property rental income.
- Golden Visa: residency conditions for a company-owned property differ from a personal purchase; if you are aiming for a Golden Visa, confirm before setting up the structure. The requirements are on our Residency in Dubai by buying property page.
- Tax in Turkey: a foreign company owned by someone fully tax resident in Turkey may fall under Turkey’s controlled foreign company rules. Ask your accountant.
- Financing: a mortgage in a company’s name is harder to find than a personal one; for the options see our Can I buy a home in Dubai with a mortgage .
Frequently asked questions
Can you buy property in Dubai through a company? Yes. In areas open to foreigners, the DLD issues title deeds to companies set up in the UAE and to offshore companies from approved registries. The documents required vary by company type.
Is there a tax advantage to buying through a company? Usually not. An individual’s rental income is tax-free in the UAE; the same income in a company can be subject to 9% corporate tax on annual profit above AED 375,000.
Can an offshore company buy property in Dubai? It is possible with offshore companies from approved registries. Factor in the set-up and annual renewal costs and the DLD’s document requirements.
Can a company-owned home qualify for a Golden Visa? The conditions differ from a personal purchase. If you are aiming for a Golden Visa, you need to confirm the current requirements before setting up the structure.
Is it worth setting up a company for a single flat? In most cases, no. Buying personally is simpler and cheaper, and the rental income is tax-free. A company structure makes sense when co-ownership, a portfolio or succession planning is the priority.
Related pages
Is there property tax in Dubai, Can I buy property in Dubai as a foreigner and Property in Dubai.
Sources
The rule on individuals’ real estate income is based on Cabinet Decision 49/2023 and the Federal Tax Authority’s guides; the corporate tax rate and threshold come from the UAE Corporate Tax Law (Federal Decree-Law 47/2022). For title and company ownership see the Dubai Land Department, and for will registration the DIFC Wills Service.
How we help you with this
As capital.works®, the Overseas Property Centre, we represent selected developments in Dubai. There are currently 35 Dubai developments live on the site, each with its price list, floor plans and completion schedule on its own page. We are an FCA authorised credit broker (FRN 1049015) and a member of the NACFB; the purchase, the finance, residency and post completion management are all run by one team.
Legal notice
capital.works® (YATIRIM UK LIMITED) is a real estate advisory company; it does not provide legal or tax advice. Company set-up, tax structure and succession planning are personal; before buying through a company, speak to a qualified tax adviser and lawyer in the UAE and in Turkey.
The next step
Tell us how many properties you plan to buy and your priorities, such as co-ownership or succession; we will set out the cost of buying personally and through a company side by side, and you can finalise the structure with your tax adviser: Contact us.