Invest in Property in Dubai: Setting Up an SPV or Buying Personally?

Choosing how to own Dubai real estate is just as important as choosing what to buy. Registering a title in your own name is simple and fast. Using a special purpose vehicle (SPV) gives you liability protection, cleaner partnership mechanics, and often better succession planning. 

This guide speaks directly to individual investors, family offices, and companies, with practical pros and cons, costs, tax notes, and the specific rules that matter in Dubai.

Why Structure Choice Matters in Dubai

• Market scale and momentum. Dubai recorded 125,538 real estate transactions worth AED 431 billion in H1 2025, up 26 percent year over year, which underscores the need to get structure right before you scale a portfolio.
  
  
• Clear rules and digital processes. Transfers sit under the Dubai Land Department, leases are registered on Ejari, and rent reviews follow the RERA Rental Index calculator.
  
  
• Investor visas tied to property value. DLD provides a 2-year investor residence permit at AED 750,000 (≈ USD 204,000) and a 10-year Golden Visa at AED 2 million (≈ USD 545,000), subject to criteria.

The Short Answer

• Buy personally if you want simplicity, low ongoing costs, a single property or small portfolio, and direct eligibility for property-linked visas.
  
  
• Use an SPV or UAE company if you want liability ring-fencing, partners or co-investors, cleaner exits via share transfers, institutional governance, or long-term succession planning.

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Invest in Property in Dubai: How to Decide

Option 1: Buying in your personal name

Advantages

• Simplicity and speed. Personal title transfers are straightforward at DLD.
  
  
• Lower ongoing costs. No company setup or annual renewals.
  
  
• Direct visa eligibility. DLD’s Investor Residence and Golden Visa tracks accept personal ownership that meets thresholds.
  
  
• Easy for buy-to-let. You can register the tenancy on Ejari and rely on the RERA Rental Index for renewals.

Trade-offs

• No liability shield. Obligations and disputes sit with you personally.
  
  
• Partnership friction. Shared personal titles are clunky if capital tables change.
  
  
• Estate planning. If you are a non-Muslim and want common-law style distribution and guardianship, register a DIFC Will that covers UAE real estate. DIFC Courts confirm Property Wills for non-Muslims who are 21 or older and own UAE real estate.

Best for

Single-owner rentals, second homes, and investors who value simplicity over structuring features.

Option 2: Buying through an SPV or UAE company

An SPV is a holding company that exists only to own assets and ring-fence liabilities. In the UAE you will commonly see:

• DIFC SPV in Dubai’s common-law financial free zone. DIFC positions SPVs as passive holding companies used to isolate assets and liabilities.
  
  
• ADGM SPV in Abu Dhabi’s common-law financial free zone. Following an MoU with DLD, ADGM entities can own real estate in Dubai’s freehold areas, subject to DLD requirements.
  
  
• RAK ICC company in Ras Al Khaimah. DLD has MoUs that let eligible RAK ICC entities hold freehold in Dubai with the right documentation.

Why investors pick SPVs

• Liability ring-fencing. Keep obligations at the asset level. DIFC formalizes SPVs for that purpose.
  
  
• Partnerships and cap table changes. Issue or transfer shares rather than retitle the property.
  
  
• Succession planning. Shares can be held by a trust or foundation, which simplifies inheritance.
  
  
• Institutional governance. Board resolutions, shareholder agreements, and clean audit trails.
  
  
• Recognition by DLD. MoUs with DIFC, ADGM, and RAK ICC facilitate corporate ownership of freehold in Dubai.

What it costs and how long it takes

• Setup time. Roughly 1 to 3 weeks, depending on jurisdiction and KYC.
  
  
• Setup and annual fees. Market ranges vary by provider, but plan for several thousand dollars at formation and ongoing annual maintenance thereafter.
  
  
• DLD transfer costs. Regardless of structure, budget the standard 4 percent DLD transfer fee and small administrative fees at transfer.

Practical notes to stay compliant

• Use the right vehicle for the right zone. DLD ownership by entities is for designated freehold areas only. Confirm your asset lies in a freehold zone.
  
  
• Bring proper corporate papers. Expect legalized constitutional documents and resolutions when the entity is the buyer. DLD and trustee offices will list exact requirements case by case.
  
  
• Keep the SPV passive. DIFC SPVs are not for operating a business. They hold assets. 

Best for

Co-investments, family offices, professional landlords, and anyone who wants clearer exits via share sales or who needs robust succession planning.

Tax and VAT at a Glance

Individuals

• No personal income tax on residential rent and no annual municipal property tax on owned homes in Dubai. Residential sales after first supply and residential leases are generally outside the scope of VAT.

Companies and SPVs

• The UAE corporate tax regime applies for financial years starting on or after 1 June 2023. The standard rate is 9 percent on taxable profits above the threshold. Free zone entities can access 0 percent on qualifying income, while non-qualifying income is taxed at 9 percent.
  
  
• The Federal Tax Authority’s Free Zone Person bulletin explains how qualifying income works and provides examples, including treatment of immovable property. This area is technical and depends on location and use, so take advice.
  
  
• VAT: Commercial property sales and leases are generally subject to 5 percent VAT. Residential leases and most second-sale transfers are exempt, with the first supply of a new dwelling typically zero-rated so developers can recover input VAT.

Estate Planning that Actually Works

• Personal owners. If you are a non-Muslim and want your estate to follow a common-law distribution, register a DIFC Will. DIFC’s guidance confirms Property Wills for non-Muslims who are at least 21 and own UAE real estate.
  
  
• SPV owners. Many investors hold SPV shares under a trust, foundation, or will so that control passes cleanly without retitling the property.
  
  
• Newer practice updates continue to strengthen the DIFC wills framework. Stay current on local rules and enforcement mechanics through qualified counsel.

Leasing and Operations

• Long-term lets. Register the tenancy on Ejari, then rely on the RERA Rental Index for renewal caps. This applies whether the owner is a person or an entity.
  
  
• Short-term holiday homes. If you plan to operate short lets, obtain a Holiday Home permit and comply with DET rules and nightly Tourism Dirham. Entity ownership does not remove operator obligations.

Financing Notes

• Banks lend to both individuals and UAE entities, though underwriting can differ. Some lenders are more comfortable with regulated local entities than foreign companies because KYC and enforcement are clearer. Always check whether your chosen SPV jurisdiction is on your bank’s approved list for title and lending.

Scenarios to Help You Choose

Scenario A: Income-focused individual

You are purchasing a ready 1-bed to rent long term and you want visa eligibility. Personal title is usually the cleanest path and the cheapest to maintain. Register a DIFC will if you want non-Muslim estate planning. 

Scenario B: Two siblings pooling capital

You plan to buy two apartments and may add partners later. A DIFC or ADGM SPV makes adding or removing investors easier through share transfers. The SPV limits liability and keeps cap tables clean. Confirm that your bank will lend to the SPV on terms you accept.

Scenario C: Family office building a rent-roll

You want multiple assets across freehold zones and prefer asset-by-asset SPVs for ring-fencing. You can sell shares in a specific SPV if you wish to exit an asset without retitling. Use a foundation or trust for succession over the SPV shares. DLD recognition of DIFC, ADGM and RAK ICC entities supports this approach.

Cost and Admin Comparison

Personal Ownership

• Setup: Immediate at transfer
• Upfront cost: DLD transfer fees only
• Annual cost: None
• Liability: Personal
• Partnerships: Harder to manage
• Visa route: Direct via property
• Tax: No personal income tax on residential rent

SPV or UAE Company

• Setup: Formation and KYC — 1 to 3 weeks
• Upfront cost: Formation fees plus DLD transfer fees
• Annual cost: Annual government and registered agent fees
• Liability: Ring-fenced at entity level
• Partnerships: Simple via share issues or transfers
• Visa route: Often via property or company, fact-specific
• Tax: Corporate tax rules apply to companies; free zone benefits may apply to qualifying income

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Notes: All buyers should budget standard DLD transfer fees and related admin fees at closing. Corporate buyers must also budget for document legalisations and resolutions. 

Due Diligence Checklist Before You Decide

1. Confirm freehold location for the property if using a company. MoUs extend recognition to specific UAE jurisdictions like DIFC, ADGM, and RAK ICC. Dubai Land Department+2ADGM+2
   
   
2. Choose the holder that fits your goals. Simplicity and visas often favor personal title. Partnerships and shielding favor SPVs.
   
   
3. Map the tax position for your facts. Use the FTA Free Zone Person bulletin and the Corporate Tax Decree-Law as primary references, then obtain bespoke advice on qualifying income and immovable property. FTA UAE+1
   
   
4. Plan your estate from day one. If you are a non-Muslim, register a DIFC Will or use a holding structure that supports your plan. DIFC Courts
   
   
5. Check leasing compliance and rent rules. Use Ejari and the RERA Rental Index to keep renewals within the calculator. Dubai Land Department
   
   
6. Confirm bankability. Speak with lenders early on approved jurisdictions and documentation standards for entity borrowers.

Frequently Asked Questions

Can a foreign company hold Dubai freehold directly?
As a rule, DLD expects a UAE-recognized entity for title. The recognition is supported by MoUs with DIFC, ADGM and RAK ICC. Always verify that your specific vehicle appears on the trustee office’s acceptance list for the asset you are buying.

Is residential rent subject to VAT or personal income tax?
Residential leases are generally exempt from VAT. There is no personal income tax on rent for individuals. Commercial property is typically subject to 5 percent VAT.

Do free zone companies always pay 0 percent corporate tax?
No. Qualifying Free Zone Persons benefit from 0 percent on qualifying income, while non-qualifying income is taxed at 9 percent. The FTA bulletin explains how this applies, including to immovable property. Get tailored advice.

What if I plan to Airbnb my unit?
You need a Holiday Home permit and must comply with Dubai DET rules and nightly Tourism Dirham. Using an SPV does not remove those operator obligations.

Invest in Property in Dubai: Bottom Line

• Choose personal ownership for speed, simplicity, and a straightforward path to property-linked visas.
  
  
• Choose a DIFC, ADGM, or RAK ICC SPV if you want limited liability, flexible partnerships, and professional governance.
  
  
• Whichever you choose, verify freehold eligibility, map your corporate tax position carefully, register leases through Ejari, and lock in estate planning with a DIFC Will if you are a non-Muslim. The paperwork is manageable, and getting this right up front saves time, cost, and risk as your Dubai portfolio grows.

Ready to structure your Dubai investment the smart way?

Speak with our Dubai real estate specialists about the ownership model that fits your goals.

Contact us today to map your property structure and start your Dubai investment journey on solid ground.

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