How much money is required to purchase a property?
The United Arab Emirates Golden Visa programme is receiving significant attention. High-net-worth investors from India are making excellent use of this opportunity. Due to the close ties between Dubai and India, as well as Dubai’s status as a global hub, wealthy Indians are applying in large numbers for these Golden Visas.
For this 10-year renewable residency in Dubai, an investment of at least Rs 4.57 crore is required. Additionally, the property must be maintained. Visa holders also have the facility to sponsor their family members. Meanwhile, it is reported that around 4,300 Indian millionaires are planning to settle abroad this year, with the majority choosing Dubai.
Regarding the UAE Golden Visa, which is a highly popular scheme for long-term residency, you can obtain the Golden Visa with an investment of at least 2 million AED, which is approximately Rs 4.57 crore in Indian currency. The validity of this visa is ten years, and it can be renewed if desired after this period.
Once the formalities are completed, your Golden Visa application will be approved. The visa includes a six-month multiple-entry visa, allowing you to visit the United Arab Emirates. Afterward, you will need to apply for an ID card and undergo a medical check-up, as explained by Rohit Bharadwaj, Country Head at Henley & Partners. Once this process is completed, you will receive your residence visa. However, the residency processing may take approximately two months.
To purchase real estate in Dubai, you need to pay a 4% fee to the Dubai Land Department on the property you are buying. This fee is due at the time of registering the property in your name, as explained by Karan Batra, a chartered accountant based in both India and Dubai.
In addition to this fee, other costs range from 4,000 AED to 1.02 lakh INR (approximately 91,000 to 102,000 INR). These costs include government processing fees and other charges paid by the developer. The money is paid to the developer when you purchase the property. Essentially, to obtain the Golden Visa, it is necessary to work directly with a real estate developer. They will assist with the visa process, and you may also consider consulting with local advisors or consultants for additional help if needed.
However, there are opportunities to obtain a Golden Visa without making any investments, according to some experts. The UAE government introduced this visa program to attract skilled professionals to the country. For example, scientists, C-suite executives, researchers, and creative professionals fall into this category. To attract top-tier talent and increase the popularity of the Golden Visa program, the UAE has made this visa available.
In addition to this, other options are also available. One such option is obtaining Golden Visas under the Foreign Exchange Management Act (FEMA). FEMA, which is administered under the Reserve Bank of India, also provides pathways for acquiring Golden Visas.
For example, the Golden Visa allows you to obtain loans to purchase real estate in Dubai. However, under FEMA regulations, foreign currency is not permitted for purchasing real estate. Additionally, it does not allow the purchase of properties under construction. If a payment exceeds one lakh LRS, it is subject to tax, which would constitute a violation of FEMA regulations, according to experts from Wealth Tech Platform.
Furthermore, depositing two million local currency (AED) in fixed deposits at banks in Dubai also qualifies you for the Golden Visa.
The key point to remember is that the Golden Visa does not grant you UAE citizenship directly. To obtain an Emirati passport, you must reside in the UAE for at least 30 years and provide some form of service to the country. Additionally, proficiency in the Arabic language is required.
Wealthy individuals from India who seek property abroad generally prefer Dubai. With this visa, you can also start a new company and open a bank account. Furthermore, due to Dubai’s advantageous time zone and flight connectivity, affluent individuals around the world often prefer to buy a second home in Dubai.
The Golden Visa also allows you to study and work in Dubai. Additionally, the Dubai government offers various tax incentives. There is no personal income tax in Dubai. For corporate tax, only 9% is levied on profits, and some free trade zones have no taxes at all.
Regarding the Golden Visa holder’s stay, they can be outside Dubai for up to six months without worrying about the visa expiring. However, other individuals must return to Dubai within six months; otherwise, their visa will become invalid.
Dubai launched the Golden Visa program in 2019. With this visa, holders can sponsor their family members, including their spouse, children, and domestic workers. The Dubai government introduced this visa to significantly boost its real estate market. Wealthy individuals from various countries around the world are making good use of this opportunity.
