Why UAE’s golden visa is the top choice for global millionaires

Firstpost and Moneycontrol bring you a series on golden visas. In this piece, we look at the United Arab Emirates (UAE) Golden Visa, which is among the top 10 programmes, globally, as per data from Henley and Partners, an investment migration consultancy.

Lure of the UAE Golden Visa

The UAE has been a top contender in attracting high net worth individuals, private capital and talent for quite some time, say experts.

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According to Henley & Partners, the UAE continues to dominate as the top destination for wealthy migrants, with an estimated 6,700 millionaires relocating to the country by the end of 2024. The US comes next with inflows of more than 3,800 millionaires estimated last year.

According to Rohit Bhardwaj, Country Head India at Henley & Partners, “The UAE's economic resilience, favourable tax policies, and world-class infrastructure, combined with its strategic location and political stability has made it an ideal destination for global wealth and investment at a time when the world is grappling with geopolitical tensions, economic uncertainty, and social upheaval.”

With zero personal income tax, no capital gains tax, and no inheritance tax, the UAE offers a more tax-efficient environment than India, allowing individuals to preserve more of their wealth.

“Beyond financial benefits, Dubai, the commercial capital of the UAE, provides a world-class lifestyle – from high-end residential communities and luxury amenities to excellent healthcare and education. The city’s proximity to India makes travel seamless, and its status as a global business hub offers access to markets across the Middle East, Africa, and Asia,” said Gaurav Nalawade, Country Head-India, RIF Trust, a global residency and citizenship solutions provider.

With high rental yields, capital appreciation, and ownership rights in designated areas, the Golden Visa provides long-term stability for investors and their families.

The UAE is currently one of the most affordable luxury destinations in the world, in comparison to many of its counterparts like Hong Kong and Singapore, say experts.

“There has been an uptick in interest in the Dubai residential market from the wealthy, including not just businessmen but also top professionals from the banking and financial services and even crypto millionaires,” said Morgan Owen, Managing Director - Middle East & North Africa, ANAROCK Group, an international property consultant.

Many Indians too have sought to buy a second home there - a home away from their primary residence in India.

“Unlike India, where investors must account for capital gains tax, stamp duty, TDS (tax deducted at source) on rental income, annual property tax, and municipal levies, Dubai offers a far simpler tax system. Buyers in Dubai only pay a one-time 4 percent transfer fee when purchasing or selling property. Additionally, there is no capital gains tax or income tax on rental earnings, although property owners must pay a municipal tax to the Dubai Land Department,” said Rabiah Shaikh, Chief Business Officer & Principal Partner - Global Markets, Square Yards.

UAE’s Golden Visa versus others

Every residency programme has its own appeal, but consultants rate UAE highly on its political and economic stability and tax benefits.

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“Unlike some programmes in Europe or the Caribbean that provide a direct route to citizenship, Dubai’s Golden Visa is strictly a long-term residency permit. However, its flexibility, no insistence on minimum stay requirements, and access to global business opportunities make it a preferred option for high net worth individuals and professionals,” said Nalawade.

On the flipside, unlike many other countries, the UAE Golden Visa does not offer a pathway to citizenship, barring exceptional cases, as it is strictly a residency permit.

The advantages

Long-term residency: The UAE Golden Visa grants long-term residency, typically ranging from 5 to 10 years, which is renewable. This provides a sense of stability and security, as it does not require the visa holder to renew every few years.

No sponsor requirement: Unlike other visa types, Golden Visa holders are not required to have a UAE national or company as their sponsor. This offers more independence for long-term residents.

Family sponsorship: You can sponsor your immediate family members, including spouse, children, and in some cases, parents or dependents.

Property ownership: It can give you the opportunity to invest in property, especially in freehold areas, with no restrictions on ownership.

No income tax: The UAE offers a favourable tax environment, with no personal income tax, making it an attractive destination for high net worth individuals and professionals.

Travel benefits: The Golden Visa grants multiple-entry privileges, allowing you to travel in and out of the UAE without the need for additional visas.

The UAE is a low-tax jurisdiction, but there are some financial considerations you need to bear in mind:

- No personal income tax on salary or investments.

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- Corporate tax: 9 percent on taxable profits above AED 375,000.

- VAT: 5 percent applies to most goods and services.

- Real estate taxes: About 4 percent registration fees.

- Excise duties: Applied to specific goods (e.g., tobacco, sugary drinks).

Know the UAE Golden Visa requirements

There are numerous categories of beneficiaries for the UAE's Golden Residence visa, including real estate investors who can obtain a 10-year renewable residence visa by purchasing one of the following:

• A property worth a minimum of AED 2 million (approximately Rs 4.8 crore).

• A property worth a minimum of AED 2 million with a loan from specific local banks.

• One or more off-plan properties worth a minimum of AED 2 million from approved local real estate companies.

The procedure

Applications for UAE residency should be accompanied by the appropriate fees and supporting documents.

The government's registration and application fees are about AED 2,800 to 5,000, with additional fees for family sponsorship. Additional costs also include medical tests, biometric scans, legal and advisory fees.

Golden Residence visas obtained are valid for 10 years and can be renewed thereafter. Residing outside the UAE does not nullify the visa. However, investments must be held for at least three years.

“Once the requirements have been fulfilled, pending initial approval of the application, the successful applicant receives a six-month multiple-entry visa to travel to the UAE to apply for an ID card and undergo medical checks. Thereafter, full approval is granted and the client receives the residence visa,” said Bhardwaj.

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Other types of visas on offer include Real Estate Investor Visa, Entrepreneur & Business Investor Visa, Highly Skilled Professionals Visa (doctors, engineers, scientists, etc), outstanding Students Visa, Creative & Cultural Talent Visa, Freelancers & Remote Workers Visa and Humanitarian & Social Work Visa.

The UAE Golden Visa provides long-term residency but does not automatically grant visa-free access to additional countries. The Golden Visa is strictly a residency permit and does not lead to citizenship. The UAE only grants citizenship in exceptional cases, such as for individuals who have made significant contributions in the fields of science, business or culture.