The UAE: A first choice for residence
The United Arab Emirates has grown over the recent years into a major residence of choice for high net worth individuals and their families.
The UAE is a federation of seven Emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al- Khaimah and Fujairah.
Dubai and Abu Dhabi, harbouring a population of 2.7m people each, are the most populated, cosmopolitan and renowned Emirates of the UAE.
With Europe tightening the fiscal screws, the traditional tax friendly jurisdictions such as the UK, Switzerland or Luxembourg are becoming less attractive following the on-going erosion of fiscal incentives and the rise of running costs.
Meanwhile, the UAE with its total tax exemption, low operation costs, political stability and strategic location between the East and the West, has become a fast growing hub and a key jurisdiction for the residency of individuals and companies.
Benefits of becoming of resident of the UAE
- Total exemption from income tax and wealth tax for individuals
- No minimum time required in the UAE. The only requirement is not to spend more than six consecutive months outside the UAE.
- Easy administrative requirements and low processing costs for the issuance and renewal of the residence permit
- International financial centre with presence of leading financial institutions, investment managers, law firms, tax advisors, and service providers
- Freedom to reside anywhere in the UAE
- Good for business: major commercial hub for inter¬national business. The UAE is the most connected country in the world
- Political stability: Ranked 51 by the Word Bank, ahead of the UK, the US and France
- Very safe: The UAE is one of the safest countries in the world, providing a very secure environment for its residents and their families.
- Sunny climate all year around with white sandy beaches and friendly atmosphere
How to become a resident of the UAE
To become a resident of the UAE you must obtain a residence permit. It is a straightforward process that can be completed in 2 months. The two main options to secure a resident permit are as follows:
Real estate investment
By acquiring a property valued at AED 1 million (US$273k) or more, you can obtain a 2 year residence permit.
Once the permit is obtained, the only obligation is not to spend more than six consecutive months outside the UAE.
Renewal: After 2 years the residence permit can be renewed.
Setting up a company
This option is the most popular and gives you a 3 year resident permit. How does it work?
- 1st step: setting up a company in one of the free zones (DIFC, DMCC, Dubai Internet City, etc.) and issuance of a license
- 2nd step: applying for a resident permit and obtaining a visa
The whole process takes about 2 months and the actual physical presence required during that time is approximately a week. It may take longer depending on the nationality of the applicant and the mandatory clearance from the Criminal Investigation Department (CID).
Once the permit is obtained, the obligations are to renew the company’s license annually and not to spend more than six consecutive months outside the UAE.
About the UAE
Location
The UAE is situated in Middle East on the Arabian Peninsula, bordering the Gulf of Oman and the Persian Gulf, Oman and Saudi Arabia. It is located in a strategic location south of the Strait of Hormuz, a vital transit point for world crude oil.
Languages
The official language is Arabic and the commercial language is English.
Culture
The UAE is historically a Muslim country with a traditional Arab culture. However, it has evolved in a multicultural hub and the expat community now constitutes nearly 90% of the population. The UAE ranks 8 in the world in net migration rate.
Currency
UAE Dirham (AED). The AED is pegged to the US Dollar: 1 USD = 3.67 AED
Political system
The UAE is a federation of seven constituent monarchies: The Emirates of Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al- Khaimah and Fujairah. The UAE gained its independence from the UK in 1971. After being established on independence, its constitution was made permanent in 1996. The government is a federal presidential elected monarchy, where the president is elected from among the absolute monarchs who rule each of the seven emirates. The seven emirates are monarchies with a hereditary system.
Economy
The second largest in the Arab world after Saudi Arabia. Though its economy was built on oil and gas revenues, the AUE has succeeded in diversifying into financial services, real estate, tourism, trading, renewable energy and manufacturing.
Legal system
Civil law, with influences from French, Roman, Egyptian and Islamic law. Sharia principles apply only to family & succession matters. Non-Muslims can opt for their national law to apply to family and succession matters.
Connectivity
The UAE is the third most connected country in the world, after the USA and Hong Kong.
Accessibility
The best in world. Dubai International is the world’s no.1 airport with 100 airlines connecting Dubai to more than 240 destinations around the world.
Next Step
To find out more about becoming a resident of the UAE, please contact us, we will be happy to assist you:
Inna Iranyi, t +44 20 7482 8102, inna@shorexcapital.com (English, Russian)
Ilona Iranyi, t +44 20 7482 8123, ilona@shorexcapital.com (English, Russian)
Philippe Gelin, t +44 20 7482 8118, pg@shorexcapital.com (English, French)