According to ‘Al Bayan’ newspaper, Dubai authorities plan to introduce a new residence visa system for real estate investors.
A government official was quoted by the daily as saying “authorities are discussing ways of granting owners of properties in the emirate, residence visas based on transparent rules and legislation”.
The new rule, when announced, it is expected to boost the property sector. However, real estate professionals express concerns about the costs involved. The costs for setting up a company, including maintenance and ownership fees, to register a property under it could go up and this could put off buyers.
The official commented: “the new mechanism suggests that property owners to establish a company in the free zone and then the company will own the property which will let the property owner who owns the company to obtain a residence permit based on ownership of the company, not the property.”
However, property owners must meet specific requirements to be able to establish the company. So far, only Jebel Ali Free zone offshore companies are authorized to own properties in Dubai.
As understood from the article, the “new” residence visas will be valid as long as the ownership of the company is registered and renewed.
