Amendments for Applicants for Golden Visas in the UAE: What They Change
UAE immigration policy saw some of the most significant changes in recent years in October. Nikita Kuznetsov (Metropolitan Group) explained what they change for those who want to become a resident or get a Golden Visa in this country
Over the past couple of years, the demand for real estate in Dubai and in the UAE as a whole has grown significantly. Investors from all over the world have turned their eyes to the country, and the Russians are confidently among the ten most active of them - the neutral status of the Emirates in the current geopolitical situation played an important role here.
According to the Dubai Land Department, the third quarter of this year broke another record, becoming the most productive in history: more than 25.5 thousand transactions - up almost 14% compared to the previous quarter and 60% compared to the third quarter of 2021. Since the beginning of 2022, sales have jumped to 68,500 transactions worth about 184 billion dirhams (over $50 billion), almost 12% higher than the figure achieved in all of 2021.
The achievement of all new historical highs in terms of volume and value of real estate sales was largely supported by the Golden Visa program launched in 2019, which allowed expats to live, work, study and open a business in the Emirates without the need for a national sponsor. Since then, more than 65,000 applicants have successfully obtained 10-year resident visas.
The flexible rules for obtaining a Golden Visa through real estate powerfully support the business ecosystem of the country, as it allows you to build a business by carrying out long-term financial planning, which further encourages the exploration of business and investment opportunities. In early October, a package of amendments to the visa regulations, announced back in the spring, came into force and spurred an increase in the number of requests for resident visas for investment.
Let’s look at what gives the new order to investors.
Key changes
The new system, in particular, implies a simplified procedure for obtaining a “Golden Visa” for real estate investors. According to experts, this should have a positive impact on the economy of the Emirates and become one of the keys to its stable growth.
So, when buying real estate, a visa is issued for a period of two to ten years, depending on the amount of investment. In addition to permanent residence in the UAE, a resident visa entitles you to open bank accounts, obtain consumer loans and mortgages, conduct business in the Emirates, obtain the status of a UAE tax resident, medical care and health insurance, employment, long-term rent, and more. In other words, thanks to this document, a person gets the opportunity to use the entire social infrastructure of the emirate chosen for long-term residence.
Citizenship by investment in the UAE is still not available. But at the same time, the cost threshold for obtaining a resident visa, including the Golden one, has significantly decreased. You can apply for such a visa when buying one or more properties with a total value of 2 million UAE dirhams (about $545,000).
In the adopted amendments, the key point was precisely the lowering of the threshold for the value of acquired real estate - previously, the amount of investment had to be at least 10 million UAE dirhams. With investments in the amount of 750,000 UAE dirhams (about $204,000), you can now count on a two-year visa, which also allows you to open a bank account and make international payments without hindrance.
It is worth emphasizing that both one and several objects can be selected as an investment that gives the right to apply for a visa. The innovation is that these can be not only ready-made, but also projects under construction from an approved list of local companies, and obtaining a visa is possible with prior approval from the Dubai Land Department, depending on the project and the stage of readiness.
All the above is relevant for Dubai. When buying property in other emirates, for example, in Abu Dhabi, which is also becoming popular with investors, one should take into account the nuances of local legislation. Until recently, foreigners were only able to rent real estate here for up to 99 years, but since April 2019, foreign citizens have received the right to buy real estate in 100% ownership in specially designated areas - freehold zones. Investments in Abu Dhabi real estate worth AED 2 million or more are eligible for a ten-year investor visa under the new visa regulations.
Additional Benefits
In addition to the above, the amendments allow a Golden Visa holder to sponsor their spouse, parents (previously this was not the case) and children, regardless of their age and if they are not married. Previously, there was an age limit - up to 18 years.
It is also possible to sponsor any number of visas for domestic staff, and family members are allowed to remain in the UAE in the event of the death of the original visa holder before their residency expires.
The Golden Visa can be extended and remains valid no matter how much time the holder spends outside the UAE. Previously, the period of stay outside the UAE was no more than 180 days.
It is important to note that the procedure for buying property in the UAE is one of the most convenient and simple in the world, both from developers and in the secondary market. The authorities have simplified the procedure for entering the market for potential investors as much as possible. In particular, it is possible to complete a transaction remotely, which is especially important in cases where a purchase decision needs to be made quickly. Also, some of the largest developers in the UAE allow you to pay for the purchase of real estate using cryptocurrency.
However, it should be understood that a resident visa is not issued automatically after a transaction for the purchase of real estate, its receipt is a separate process that takes up to four weeks and involves the submission of a whole package of documents and the applicant’s presence in the UAE during the entire process.
Interesting fact: in a study conducted in the summer of 2022 by the online platform for expats InterNations, the Emirates became the world leader in terms of ease of obtaining residence visas. According to the results, 83% of respondents gave high ratings to visa regulation in the UAE, while the global average was 56%. Respondents also highly rated online government services, with 85% citing the widespread use of English as an advantage, agreeing that it is easy to live in the Emirates without speaking Arabic.
Investment potential of real estate
In terms of investment potential and the threat of market overheating, according to the results of the UBS Global Real Estate Bubble Index 2022, the Dubai real estate market is currently considered fairly valued. Between mid-2021 and mid-2022, there was a nominal price increase of 10% (slightly higher than in the luxury real estate segment), but now the market has only reached the levels of 2019 and is still 25% below the peak of the second quarter of 2014.
Even with the expansion of supply and increased prices, investment in real estate will remain promising. According to our analysts, in the next 9-12 months, the growth in volume and number of transactions will only increase, while prices will slow down - this is a normal situation for a healthy market.