UAE Golden Visa Drops ‘Minimum Down Payment’ Rule

Effective January 24, 2024, the UAE has eliminated the previously mandated minimum down payment of AED1 million ($272,000) or 50 % of the property’s value for the Golden Visa related to real estate. This implies that irrespective of the down payment amount and the property’s status (whether off-plan, completed, mortgaged, or not mortgaged), investors are now eligible for a Golden Visa by possessing a property valued at AED2 million ($545,000)or more.

Investors opting for properties valued at AED2 million ($545,000) or higher can now access long-term residency privileges in the U.A.E . The Golden Visa, valid for 10 years and subject to renewal under the same conditions, offers investors the opportunity to integrate into the vibrant community of the UAE and expand their investment endeavors

Broadly, Corporate Tax applies to the following “Taxable Persons”:

• UAE companies and other juridical persons that are incorporated or effectively managed and controlled in the UAE;
• Natural persons (individuals) who conduct a Business or Business Activity in the UAE as specified in a Cabinet Decision to be issued in due course; and
• Non-resident juridical persons (foreign legal entities) that have a Permanent Establishment in the UAE (which is explained under [Section 8]).

Juridical persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons” and must comply with the requirements set out in the Corporate Tax Law. However, a Free Zone Person that meets the conditions to be considered a Qualifying Free Zone Person can benefit from a Corporate Tax rate of 0% on their Qualifying Income (the requirements are included in [Section 14]).

Non-resident persons who do not have a Permanent Establishment in the UAE or earn UAE-sourced income unrelated to their Permanent Establishment may be subject to Withholding Tax (at the rate of 0%). Withholding Tax is a form of Corporate Tax collected at source by the payer on behalf of the income recipient. Withholding taxes exist in many tax systems and typically apply to the cross-border payment of dividends, interest, royalties, and other types of income.

More information about UAE corporate tax 👉🏽  https://mof.gov.ae/corporate-tax/