United Arab Emirates (UAE). Dubai

Residency / Citizenship through Real Estate Purchase

Yes, residency is available. When purchasing property worth from 750,000 AED (204,000 USD), the investor receives a 2-year visa. When purchasing property from 2 million AED (545,000 USD) — a 10-year Golden Visa. Obtaining citizenship is practically impossible; it is granted in exceptional cases by a decree from the ruler.

Language

The official language is Arabic. English is used for everyday business and general communication. The emirate has Russian-speaking agencies, schools, kindergartens, and medical centers.

Visa Regime

Citizens of CIS countries have a visa-free regime for 90 days within a 180-day period. For long-term residence, a residence permit is required (obtained through real estate, business, work, or study).

Standard of Living (2025)

The UAE ranks in the top 30 for quality of life worldwide (Numbeo Quality of Life Index 2025). Dubai is one of the safest megacities on the planet (the crime rate is extremely low), with developed infrastructure, healthcare, and education.

Economy. Currency

Dirham (AED) has been pegged to the US Dollar since 1997 at a rate of 1 USD = 3.6725 AED. The currency is stable, with no volatility for dollar investors.

Inflation in the UAE for 2024 was below 2% (1.7%), with local peaks in Dubai around 3%. The forecast for the entirety of 2025 is approx. 2%, with possible local deviations up to 2.5–2.8%. One of the lowest rates in the MENA region.

The UAE economy is actively diversifying: oil constitutes 27% of the country's GDP, while in Dubai it's less than 2%. Key sectors are tourism, finance, logistics, IT, and construction.

Dubai's GDP Growth: 3.8% in 2024, forecast for 2025 — 3.5–4.2% (according to Dubai Statistics Center, Emirates NBD Research, Betterhomes).

Tourism: 18.7 million tourists in 2024, with 19+ million expected in 2025. Tourist inflow supports demand for rental and hotel formats.

Real Estate Market Volume in 2024 reached approximately 144 billion USD (> 200 billion USD, according to experts). Foreigners accounted for approx. 44% of buyers in 2024 (leaders: India, United Kingdom, Russia, China, Pakistan); according to some sources — up to 58% depending on the transaction type and area (Knight Frank, DLD).

From 2020 to 2024, the average price growth for housing in Dubai was 35–50%, especially in the villa, super-luxury, and secondary market segments.

In 2025, growth is slowing but continues: in the second quarter, the market showed +6% quarterly growth and +18% year-on-year (Betterhomes, Q2 2025), with activity particularly high in the off-plan segment, where prices have risen by +12.5% since the beginning of 2023.

In the premium segment, there is increased competition and sensitivity to quality, but there are no signs of a sharp overheating — the secondary segment shows stable demand. In affordable housing, price growth is moderate; local corrections are possible in the second half of 2025, especially against the backdrop of a large volume of new housing supply (up to 70,000 units in H2 2025 alone).

Buying, Owning, Renting, and Selling Real Estate in Dubai: Taxes and Fees

Freehold

Foreigners can acquire full ownership rights in over 60 zones.

VAT

·         0% on the secondary market

·         5% included in the price of ready properties from the developer

·         0% on off-plan (if handover occurs within 3 years after construction)

Service Charges: From 10 AED/m² (standard apartments) to 110+ AED/m² (super-luxury)

Annual Property Tax: None

Capital Gains Tax: None — no tax is levied on profit from sale.

Registration Fee (DLD): 4% of the transaction amount, usually paid by the buyer.

Trustee Office Registration Fee:

·         2,000 AED + 5% VAT (up to 500,000 AED)

·         4,000 AED + 5% VAT (over 500,000 AED)

DLD Administrative Fee: 580 AED — for property title deed registration.

Income Tax: None — rental income is not taxed.

Tax on Sale: None; property transfer is accompanied by the standard 4% DLD fee.

Rental Tax: None; the tenant pays a municipal fee of ~5% (included in the rental contract, does not affect the owner).

Dubai. Investment factor

Dubai offers a strong currency, zero tax burden, a transparent market, and genuine rental demand. The emirate provides investors with a rare combination of security, profitability, and ease of entry. It is a market where one can operate according to international rules, with capital protection and predictable conditions.

However, as in any fast-growing market, it is important to understand the locations, carefully select developers, and account for operational expenses. This is especially true for high-budget projects where ROI may be below average.

ROI:

·         6–8% in the ready property segment (secondary market, studios, and 1BR in JVC, Arjan, Business Bay)

·         Up to 10–12% in the off-plan segment (villas, townhouses, and apartments in Dubai South, MBR, Al Furjan)

Risk:

Low-Medium. Currency and tax risks are absent. The main risks are related to location selection, choice of developer, and correct yield calculation considering service charges.

Taxes:

·         Upon Purchase: 4% registration fee

·         On Ownership: no property tax

·         On Rental Income: 0% income tax

·         Upon Sale: 0% capital gains tax

 

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