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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[zzzzzz]

Do you already have UAE residence visa?

 

[Cloudbanck]

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

It can be convenient to have a fixed︉ address in the UAE (or outside your home country in general) though. And depending on︊ your home country, you may be required to prove that you live abroad to get︋ out of the tax net, and there utility bills and such may be useful. Australia︌ requires this I believe, and Italy/Spain (maybe France) can be tricky when moving to a︍ tax haven country. For most high tax countries though, it is enough to just tell︎ them that you live abroad (typically you just fill in a new address on the️ 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]

"we"?

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

All ears fire⁠ away.

 

[Ancova]

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

 

[yngmind]

I do

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

Thanks buddy, best answer here

 

[Ancova]

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

 

[yngmind]

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

 

[USDT]

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]

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

 

[Wellington]

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

 

[Ancova]

Works as well

 

[Nomado]

Interrested by the info as well.


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

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

Did you pick one of your 3 scenarios?

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

 

[zzzzzz]

How about using bank statement with residential address in UAE? Or do they want︄ 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]

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 ?

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

 

[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]

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 guess︀ having one doesn't hurt, but I've understood from UAEs perspective, you need a 6 months︁ 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 the︃ UAE from one of the more aggressive countries, eg Spain, Italy, France. Then they will︄ 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 are︆ moving out of these countries , you should first register in a third country, not︇ the UAE directly.