Buying UAE property for tax residency

[yngmind]

Hey folks, I think I'm not the only one who wants to achieve freedom and don't want to live in the desert to save a few bucks on taxes.

So, I have an idea to purchase the cheapest UAE property, I've found something in Ajman for about 200K AED, which is $55k.

The idea is to hold that property, live in the UAE for 3 months in the hotels or Airbnb, and be considered a UAE resident, then just travel the world and not live anywhere for more than 5 months. In some cases, you can even live in your home country.

The second option would be to purchase a decent property and rent it out.
In that case, you will have a title deed, but probably utility bills will be in the tenant's name.
Can you use your property address in the tax forms even if it's rented out to a tenant?

The third option would be to rent the cheapest studio. Found something for 20k AED a year 5445 USD = $454 a month

Waiting for comments from anyone using some similar scheme.

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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
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[zzzzzz]

Do you already have UAE residence visa?

 

[Cloudbanck]

yngmind said:
Hey folks, I think I'm not the only one who wants to achieve freedom and don't want to live in the desert to save a few bucks on taxes.

So, I have an idea to purchase the cheapest UAE property, I've found something in Ajman for about 200K AED, which is $55k.

The idea is to hold that property, live in the UAE for 3 months in the hotels or Airbnb, and be considered a UAE resident, then just travel the world and not live anywhere for more than 5 months. In some cases, you can even live in your home country.

The second option would be to purchase a decent property and rent it out.
In that case, you will have a title deed, but probably utility bills will be in the tenant's name.
Can you use your property address in the tax forms even if it's rented out to a tenant?

The third option would be to rent the cheapest studio. Found something for 20k AED a year 5445 USD = $454 a month

Waiting for comments from anyone using some similar scheme.
Click to expand...

You do not actually need to buy or rent a property to be considered a resident in the UAE. You can get an Emirates Id anyway, and just stay at short term accommodations when you are in the UAE. It is also possible to open a personal bank account in the UAE with just your airbnb address.

It can be convenient to have a fixed address in the UAE (or outside your home country in general) though. And depending on your home country, you may be required to prove that you live abroad to get out of the tax net, and there utility bills and such may be useful. Australia requires this I believe, and Italy/Spain (maybe France) can be tricky when moving to a tax haven country. For most high tax countries though, it is enough to just tell them that you live abroad (typically you just fill in a new address on the tax authority's website), and actually live abroad with no significant ties to the high tax country you are leaving.

So it depends on what you are trying to achieve here, and what your home country is, or more precisely if you are a tax resident in a high tax country.

 

[manukahoney]

Long story short - yes, totally doable.
Renting will be the best option for you, as you don't need to spend time managing the property (the quality of building in UAE is a tad worse comparing with Western EU and especially when it comes to the cheapest options).

91 days in UAE with your visa (via company, gold visa or some other way), less than 180 days in any other country, as few days in your country as possible (depends on the country). No family, business or other ties to your previous country of residence.

 

[Ancova]

All above correct, however we can issue a tax certificate for a less amount spent in the UAE, also for previous years.

 

[wellington]

Ancova said:
All above correct, however we can issue a tax certificate for a less amount spent in the UAE, also for previous years.
Click to expand...

"we"?

There's a service for just renting and obtaining tax residence and a bank account?

All ears fire away.

 

[Ancova]

wellington said:
"we"?

There's a service for just renting and obtaining tax residence and a bank account?

All ears fire away.
Click to expand...

No, just obtaining a tax residency certificate if you are already a resident but cannot spend 90 days in UAE a year.

 

[yngmind]

zzzzzz said:
Do you already have UAE residence visa?
Click to expand...

I do

Cloudbanck said:
You do not actually need to buy or rent a property to be considered a resident in the UAE. You can get an Emirates Id anyway, and just stay at short term accommodations when you are in the UAE. It is also possible to open a personal bank account in the UAE with just your airbnb address.

It can be convenient to have a fixed address in the UAE (or outside your home country in general) though. And depending on your home country, you may be required to prove that you live abroad to get out of the tax net, and there utility bills and such may be useful. Australia requires this I believe, and Italy/Spain (maybe France) can be tricky when moving to a tax haven country. For most high tax countries though, it is enough to just tell them that you live abroad (typically you just fill in a new address on the tax authority's website), and actually live abroad with no significant ties to the high tax country you are leaving.

So it depends on what you are trying to achieve here, and what your home country is, or more precisely if you are a tax resident in a high tax country.
Click to expand...

To be a UAE tax resident, you need a place to live, to rent it or own it, and live for 3 months in the UAE, otherwise, to be considered a UAE resident, you need to live 6 months there according to a new law.

manukahoney said:
Long story short - yes, totally doable.
Renting will be the best option for you, as you don't need to spend time managing the property (the quality of building in UAE is a tad worse comparing with Western EU and especially when it comes to the cheapest options).

91 days in UAE with your visa (via company, gold visa or some other way), less than 180 days in any other country, as few days in your country as possible (depends on the country). No family, business or other ties to your previous country of residence.
Click to expand...

Thanks buddy, best answer here

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[Ancova]

yngmind said:
I do


To be a UAE tax resident, you need a place to live, to rent it or own it, and live for 3 months in the UAE, otherwise, to be considered a UAE resident, you need to live 6 months there according to a new law.


Thanks buddy, best answer here
Click to expand...

There are exceptions which we can get without people spending 90 days here.

 

[yngmind]

Ancova said:
There are exceptions which we can get without people spending 90 days here.
Click to expand...

I don't really need a tax certificate, and UAE doesn't issue it for my country 🙂

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[USDT]

Ancova said:
There are exceptions which we can get without people spending 90 days here.
Click to expand...

How much time will be required to spend in the UAE if I use your assistance?

 

[Ancova]

You only have to come once every 180 days to keep your visa active.

 

[USDT]

Ancova said:
You only have to come once every 180 days to keep your visa active.
Click to expand...

what about if I have a 10-year Golden Visa?

 

[wellington]

Is Fred still a recommended person? or Person non-grata?

 

[Ancova]

usdt said:
what about if I have a 10-year Golden Visa?
Click to expand...

Works as well

 

[Nomado]

Ancova said:
There are exceptions which we can get without people spending 90 days here.
Click to expand...

Interrested by the info as well.

yngmind said:
Hey folks, I think I'm not the only one who wants to achieve freedom and don't want to live in the desert to save a few bucks on taxes.

So, I have an idea to purchase the cheapest UAE property, I've found something in Ajman for about 200K AED, which is $55k.

The idea is to hold that property, live in the UAE for 3 months in the hotels or Airbnb, and be considered a UAE resident, then just travel the world and not live anywhere for more than 5 months. In some cases, you can even live in your home country.

The second option would be to purchase a decent property and rent it out.
In that case, you will have a title deed, but probably utility bills will be in the tenant's name.
Can you use your property address in the tax forms even if it's rented out to a tenant?

The third option would be to rent the cheapest studio. Found something for 20k AED a year 5445 USD = $454 a month

Waiting for comments from anyone using some similar scheme.
Click to expand...

I am also a uae resident but traveling around full time (ie passing by Dubai every 6 months to keep the visa alive).

I am also brainstorming about the same scenarios of buying/renting in the uae at the moment. But I don't plan in living there so the cheapest would be the best.
My primary goal would be to have access to a personal utility bill at any time. It's too stressfull to not be able to provide one when a broker suddently decides to ask me for one....

Did you pick one of your 3 scenarios?

Just an idea: would it be possible to rent an appartement together with other members in the same situation so we split the rent ? How easy would it be to change the names on the utility bills from time to time ?

Last edited: Dec 17, 2023

 

[zzzzzz]

smurff said:
Interrested by the info as well.



I am also a uae resident but traveling around full time (ie passing by Dubai every 6 months to keep the visa alive).

I am also brainstorming about the same scenarios of buying/renting in the uae at the moment. But I don't plan in living there so the cheapest would be the best.
My primary goal would be to have access to a personal utility bill at any time. It's too stressfull to not be able to provide one when a broker suddently decides to ask me for one....

Did you pick one of your 3 scenarios?

Just an idea: would it be possible to rent an appartement together with other members in the same situation so we split the rent ? How easy would it be to change the names on the utility bills from time to time ?
Click to expand...

How about using bank statement with residential address in UAE? Or do they want utility bill only?

I'm wondering how people in shared housing (with roommates) provide utility bill? Or, what if you live for free with someone who owns the place?

 

[Nomado]

zzzzzz said:
How about using bank statement with residential address in UAE? Or do they want utility bill only?
Click to expand...

I could try with a bank statement. Does anybody knows if banks in uae ask for supporting documents when updating the residencial address of the personal bank account online ?

zzzzzz said:
I'm wondering how people in shared housing (with roommates) provide utility bill? Or, what if you live for free with someone who owns the place?
Click to expand...

I wonder too. Maybe a letter from the guy having his name on the utility bill saying that you live with him in his flat should work?

Last edited: Dec 26, 2023

 

[zzzzzz]

Is TRC + 3 months in UAE needed only if you want to use DTT and prove you were tax resident in previous year in UAE and not your home country? Or also in case when you cut residential ties with home country, becoming tax non-resident and not coming back for +5 years (tourist visits only)?

 

[Cloudbanck]

zzzzzz said:
Is TRC + 3 months in UAE needed only if you want to use DTT and prove you were tax resident in previous year in UAE and not your home country? Or also in case when you cut residential ties with home country, becoming tax non-resident and not coming back for +5 years (tourist visits only)?
Click to expand...

Definitely not in the second case. And usually not in the first case either. It is just not common that TRCs are requested at all, but it depends on which country claims you as tax resident.

DTTs usually don't mention TRCs, but I guess having one doesn't hurt, but I've understood from UAEs perspective, you need a 6 months TRC for it to be useful for DTT. (The 3 month one is just "domestic")

One situation where a TRC could be useful is if you move directly to the UAE from one of the more aggressive countries, eg Spain, Italy, France. Then they will ask you to prove that you live and are a tax resident in the UAE, just to accept to register you as having moved out. But anyway, if you are moving out of these countries , you should first register in a third country, not the UAE directly.