What are the legal grounds for acquiring a resident visa to the United Arab Emirates? What advantages does it bring? For how long is the visa valid? We discuss these and other related questions in the text below.
What is a resident visa to the UAE?
Foreign nationals can become citizens of the UAE only in exceptional cases but they can acquire resident visas to legalize their prolonged stay in the country. The visa acts as a residence permit. It allows a foreigner to visit the UAE as often as he/ she likes, to live, work, open bank accounts, and register business companies in the country. The visa validity term can be between 1 and 10 years depending on how it has been acquired.
Key characteristics of a resident visa to the UAE:
- It is available to buyers of real property in the UAE and to foreign investors. Besides, outstanding scientists, scholars, and artists can qualify for resident visas. Visas are also issued to students, freelancers, and some other categories of people.
- The visa can be extended multiple times.
A resident visa also allows obtaining an Emirates ID, a card that carries personal data of the holder.
Advantages that the resident visa brings
The visa brings multiple advantages and we will point out the most significant of them.
High quality of life
According to international ratings, the UAE is among the top 5 most comfortable countries for living. The social infrastructure is superb in the country.
Favorable business climate
Government grants are available to companies working in the areas of medical technologies, IT, and construction. Mohammed bin Rashid Foundation supports small- and medium-size businesses in the Emirate of Dubai. Foreign nationals are eligible to apply for grants to the Foundation if they are engaged in investment activities in the UAE.
A resident visa also makes it possible to open bank accounts in the Emirates. The banking system is extremely stable in the country and an account with an UAE bank gives wide opportunities for international money transfers.
Tax benefits
Personal income is tax-exempt in the UAE. Corporate profit is taxed at 9% if it exceeds 375,000 dirhams.
In addition to that, companies can reduce their taxes if they are registered in a Free Zone in the UAE. The VAT is not payable in Free zones and neither are customs duties. Besides, corporate profits can be tax-exempt for 15 to 50 years.
Affordable medical services
The most advanced medical clinics are found in Abu Dhabi, Dubai, and Sharjah. While medical services are free for citizens of the UAE, foreign residents have to buy medical insurance policies. The policies cover medical treatment not only in state clinics but in private ones as well.
High quality education services
There are 70 universities in the United Arab Emirates and three of them are among the best universities in the world.
Good mortgage conditions for foreigners
Mortgages are available to those foreign nationals who wish to buy residential or commercial property in the UAE. The maximum mortgage amount is 10 million dirhams. The main requirement that you have to meet to be eligible for a mortgage is as follows: 20% of the price has to be paid out of your own pocket. The interest rate will depend on the amount and the term of the loan.
Who is eligible to apply for a resident visa to the UAE?
The following categories of foreigners are eligible to apply for resident visas in the UAE:
- Entrepreneurs investing in local business or opening their own companies in the UAE (please note that registering an offshore company in Dubai will make you qualified for a resident visa);
- Buyers of real estate in the country;
- Salaried specialists employed by local companies;
- Freelancers who can prove having a monthly income of US$ 5,000 or more;
- Students attending local colleges and universities;
- Specialists in different areas with exceptional skills;
- Outstanding scientists and artists;
- Pensioners (above 55) with a monthly income of at least 20,000 dirhams;
- Members of local residents’ families.
Conditions and specific requirements for obtaining a resident visa to the UAE
The conditions that you will have to meet when applying for a visa will depend on the route that you choose.
Resident visas for buyers of property in the UAE
Buying a piece of real estate in the Emirates is one of the surest ways of acquiring a resident visa. You can buy commercial or residential property in Abu Dhabi or Dubai whose value is at least 2 million dirhams (about US$ 545,000). You can buy completed property or property under construction (if the developer holds a proper license). Mortgages are available is you make a 50% down payment.
The visa is valid for 10 years. It can be extended as long as you hold the property in your possession.
Required application documents:
- Purchase agreement;
- Ownership certificate;
- Letter from the Land Department confirming the value of the property;
- Credit agreement (if you have taken out a mortgage);
- Passport copy, a valid visa, and medical insurance policy;
- Marriage certificate (if applicable);
- Police clearances from the UAE and your home country;
- If children above 18 are added to the application, documents are required to prove that they are not married;
- Color photograph цветное фото 3х4 (the background has to be white).
The process of acquiring a resident visa consists of several steps:
- Preparatory stage;
- Acquisition of a tourist visa to the UAE;
- Purchase of property;
- Medical examination;
- Due diligence procedures.
When extending your visa, you have to collect all the required documents again and have a new medical examination.
Please note that foreign nationals are eligible to apply for visas for the members of their core families too including the spouse, unmarried sons below 25, and unmarried daughters of any age.
Resident visas for investors into business in the UAE
You can set up a company in the UAE to qualify for a resident visa. Your have the following choices:
- Open a mainland (local) company. In some business areas, co-ownership of a local person is not required any longer so the company can be 100% yours. A local company is eligible to apply for any type of business license. Small offline companies such as barbershops, for example, are popular with foreigners seeking legal residence in the UAE.
- Open a Free Zone company. Free Zones in the UAE offer serious tax benefits but the scope of business activities is limited in each Zone.
If you register a company in the UAE, the visa is going to be valid for 2 to 3 years. You can extend its validity term to 5 to 10 years if you invest at least 500,000 dirhams (about US$ 136,000) into business. When applying for a resident visa, you will have to submit the company registration certificate, the bank statement, and a copy of your business license.
Many foreign entrepreneurs do not want to go through the hassle of registering a company in the UAE. Instead, they choose to invest into one of the local companies that already exists. You can qualify for a 10-year resident visa if you buy shares of a local company paying at least 2 million dirhams. To prove the purchase, you will have to supply the share certificates and a letter from the bank.
Why can an application for a resident visa be rejected?
There can be only two main reasons why your application for a visa can be rejected in the UAE:
- You have committed a crime in the country;
- You have obtained a tourist or a working visa before but you have never used it to visit the UAE.
You can improve your chances of obtaining a resident visa to the UAE if you apply for professional assistance in the matter. The application document package has to be neat and tidy.
