How to Retire for Investments in Real Estate in Dubai

0
954
How to Retire for Investments in Real Estate in Dubai

Dubai is a world-class tourist destination known for its luxurious lifestyle, plenty of sunlight, developed social infrastructure, and high-quality real estate. The city offers perfect conditions. And that is why it enjoys the attention of foreign nationals of retirement age who want to spend their last years on the seashore around exceptional amenities and a variety of entertainment.

Specialists of AX Capital, a leading real estate agency in Dubai, the UAE, have prepared useful information for foreign pensioners planning to purchase real estate and move to a sunny city.

Reasons to retire and buy a property in Dubai

Many reasons to retire in this emirate are as follows:

  1. Pleasant weather. Dubai is a city where the sun shines all year round. Everyone who does not like rain, snow, and cold dreams of moving here. In summer, the temperature can rise to 40 degrees, so locals spend a lot of time swimming in the sea and enjoying refreshing drinks.
  2. Strong economy. The city can boast steady GDP growth and the strongest economy in the Middle East. The Emirati currency is strong and stable when tied to the US dollar and the euro. But the main economic advantage of the city is the fact that residents’ incomes are not taxed.
  3. High level of security. In the previous year, Dubai was recognized as the world’s safest city. In a recent study conducted by Gallup Global Law and Order 2021, the UAE also ranked first in this indicator, as about 95% of residents said they felt safe walking alone at night. The latest statistics show that the local police recorded a decrease of 31.3% in the number of crime reports compared to the previous year. In early 2022, 14 innovative projects were also introduced to make the emirate safer for the population.
  4. Comfort and luxury. The emirate has everything you can imagine. Snowboarding in the summer? Playing golf on an Olympic-sized course? Camel rides, safaris, luxury shops and luxury cars – it is never boring here. In this amazing city, pensioners can make their dreams come true, for which they did not have enough time when they were young. There is contactless delivery everywhere, affordable services, and air conditioners to enjoy even the hottest days.
  5. Cultural diversity. Representatives of more than 200 nationalities live and work in Dubai. Thanks to this variety of cultures, the city holds different events and festivals all year round, from Christmas to Eid al Adha, from Diwali to Ramadan. Locals are used to this festive atmosphere. There are also various religions, so you can find many mosques, churches, temples and other religious institutions in the city.
  6. A wide range of property for sale in Dubai. When it comes to housing choices, the emirate is second to none. Luxury beachfront villas, sun–drenched apartments overlooking the water canal, thriving cottage communities with family amenities – the list can go on forever.

Retirement guide in Dubai

Persons of retirement age who want to spend their best years, free from work and other tedious duties, in a sunny emirate, can use one of the following ways.

Applying for a pension program

Expat pensioners can now enjoy a luxurious lifestyle in the city through the recently launched Retire in Dubai program. This visa scheme, developed in cooperation with Dubai Tourism and the Director General of Resident and Foreign Affairs (GDRFA), provides foreign nationals with a 5-year residence permit. Persons aged over 55, as well as their spouses and dependents, can use this program if they meet one of the following criteria:

  • monthly income of AED 20,000;
  • a fixed-term deposit of AED 1 million to an Emirati bank;
  • real estate investment for AED 2 million (the residential property must be located in the emirate and put into operation);
  • savings and real estate investment valued at AED 2 million.

A foreigner can extend his 5-year visa if he continues to meet the financial requirements. It is important to note that pensioners must have health insurance from a local or international institution.

Applying for a Golden visa

Expats who want to retire and purchase flats in Dubai can also apply for one of the UAE’s long-term or golden visas. There are several categories for which foreign pensioners can apply if they meet the necessary criteria.

Individuals who have invested AED 10 million in real estate, establishing a company or a partnership with an existing or new company can get a 10-year visa. A 5-year visa is granted for the purchase of real estate for AED 5 million. However, the property you have purchased cannot be mortgaged or borrowed. It must also remain the property of the buyer for at least 3 years.

Creating a company or investing in an existing business

In addition to long-term visas, foreign pensioners can also get a 3-year partner visa. It is issued to emigrants who own shares worth at least AED 72,000 in an existing company or create a business with the same capital. Holders of this type of visa can continue working in the UAE even after retirement.

A foreigner can apply for an investor and entrepreneur visa after obtaining a trade or commercial license. But keep in mind that the above minimum investment amount applies to companies on the mainland of Dubai.

Expats can also set up a company in Dubai’s freehold zones. The size of the minimum authorized capital may vary depending on the zone.

Investments in off-plan properties for sale in Dubai

Another option for people planning to retire in the city is a 3–year investor visa, which is issued to foreigners who have invested AED 1 million or more in real estate or off-plan projects in Dubai. It allows pensioners to enjoy benefits of opening a bank account, obtaining a driving license, and issuing an Emirati identity card. Moreover, holders of this visa will also be able to sponsor their family members.

However, there are several conditions that must be met to obtain a 3-year investor visa. The property must be put into operation and suitable for living. The visa is issued not for the current market value of a housing unit, but for the amount paid for it.

Persons who own several apartments for sale in Dubai for at least AED 1 million or joint property with a spouse can also apply for a visa. However, if the residential unit is jointly owned with someone who is not a foreigner’s spouse, the share of his property must be at least AED 1 million.

Also, foreign pensioners can apply for a 3-year visa with mortgaged property, but only if they have paid 50% of the mortgage and received a Certificate of no objection from the bank.

Assistance in buying villas for sale in Dubai

Ax Capital offers in its catalog a wide range of luxury real estate of various configurations and price categories. Contact the highly qualified specialists of AX Capital, the leading real estate agency in Dubai, to get help in choosing the best property that will match your capabilities and preferences, support during the transaction and high-quality after-sales service.