Is It a Good Idea To Purchase Property using a Company License

The United Arab Emirates (UAE) is considered a hot market for purchasing and selling properties. Residents and ex-pats have been busy investing good money in real estate to bring some good to their profiles. Not only are individuals enjoying the perks of this industry, but enterprises and multinational companies are also jumping off the plan now. Have you ever thought of purchasing a property using a company license? It might sound unfamiliar to you, but it exists. This article will guide you about purchasing a property using a company license. Read on to know more!

Purchasing Property using Company License:

Purchasing property in Dubai has been an attractive investment for a long time. Individuals and entrepreneurs are always involved in this industry. However, you would not have seen a company buying property using a license. If you are a company owner and have a valid license, congrats! You have chances to invest in the industry. Let us explore further!

1. Purchasing property as a foreign national:

Dubai is home to a variety of properties, and the market is saturated more than you think. The industry will take your mind by surprise when you uncover the types of properties you can buy. Freehold properties are what is intended for foreign nationals. These properties are located in designated areas where only foreign nationals can make investments.

Freehold properties can either be purchased by individuals or companies using a valid license. However, various conditions will disqualify you if you don’t comply with the set standards. Keep the following points in mind before taking any step.

• You cannot purchase property under the license of a foreign company. Any company located outside the UAE is disqualified for the deal.
• You are not eligible to purchase property in Dubai under an offshore company license. A company located outside UAE is not eligible to make the investment in freehold properties.

Are you thinking of the underlying reason? Well, the Dubai Land Department (DLD) requires the entities or individuals to disclose all the associated information about the partners and company activities. Any individual or company owning a property in the country needs to disclose actual individual owners.

2. Offshore company license:

Offshore companies with a valid license can purchase property in Dubai only if the properties are located at certain pre-announced places. Offshore companies can purchase properties located in Jebel Ali and RAKICC. There has been an amendment in this domain as previously; offshore companies were only allowed to purchase properties in JAFZA only.

Despite being given a welcoming atmosphere in Dubai, offshore companies also face some restrictions. Not all the companies are eligible for the investment as Dubai Land Department has some barriers. Offshore companies which are registered under international jurisdictions cant purchase property in Freezone areas.

3. Onshore company license:

Onshore companies face no restrictions from the Dubai land department in terms of purchasing property in any area. These companies can invest money in real estate in freehold areas to bring good to their profiles. If you own a limited liability company (LLC) or a joint-stock company, you are eligible to purchase properties in Dubai.

Individuals with a company license can make dual investments, and they can either purchase property under a company license or under their name. It is best to explore 1 bedroom for sale in JVC as it caters to your familial needs for the latter option.

4. Freezone companies:

After going through offshore and onshore companies, another one to add to the list is Freezone companies. All Freezone companies are allowed to purchase properties at the designated areas in Dubai. Do you know what these designated areas are? Let us uncover them in the given list.

• Dubai South
• Dubai Healthcare City
• Dubai Internet City
• DMCC
• Dubai Internet City

Freezone companies that are not formed in the Emirates are not eligible for purchasing properties under the company license.

Advantages:

Owning property under a company license exposes you to various advantages. Some of these benefits are discussed here.

i) Tax saving:

You don’t need to pay tax on the property you own under an offshore company license. You are 100% tax exempted from paying any tax on your property.

ii) Ownership:

Owners of offshore companies in the UAE can enjoy sole ownership of the company and any property they purchase. They don’t need a partnership from any Emirati for claiming full ownership of either the company or the purchased property.

iii) Inheritance:

The Sharia law of inheritance in the UAE applies to various properties. However, you are exempted from the inheritance law if you own property under an offshore company license.

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