Golden visa advantages: The UAE's strategic move to attract HNW professionals and investors

The United Arab Emirates’s (UAE) impressive upward trajectory continues, with the region attracting an increasing number of ultra- and high-net-worth individuals. In this article, Nathan Taylor, an Associate Director in our Dubai office, looks at why the region is so popular.

In the five years since the UAE government introduced its new immigration regime, the ‘Golden visa’ policy has paid dividends with thousands reported to have used it to relocate to Dubai, Abu Dhabi and the other emirates. The number of visas issued by the General Directorate of Residency and Foreigners Affairs in Dubai reached a record 158,000 in 2023.

The Golden visa is a long-term residence permit enabling foreign talents to live, work or study in the UAE while enjoying exclusive residency benefits. The requirements vary depending on the type of residence desired and who is applying, with specific rules depending on what work the applicant does, and the skills and expertise they can contribute. Investment fund investors, for example, may be granted a 10-year Golden visa without a sponsor and with special conditions attached, including relating to the amount of capital they can invest.

People in other employment categories can also apply, including real estate investors, those with ‘special talents’ such as doctors, scientists and people who specialise in science or engineering, along with entrepreneurs, outstanding students and graduates, and humanitarian pioneers.

A new five-year residence permit was introduced earlier this year, with the Green visa also designed to attract global talent. No sponsor is required, there are longer grace periods after the visa’s expiry and is open to skilled employees, freelances and investors or partners.

The reasons for wanting to relocate are best categorised as:

UAE’s economic opportunities
The Golden visa regime continues to attract skilled professionals, and there is a vibrant recruitment market in Dubai. Individuals looking for career advancement will find a competitive job market with opportunities to earn a higher income than many other countries. 

While we are seeing individuals from all over the world relocating here, there is a current trend for people relocating from the UK, Europe and Asia in particular.

Tax benefits
The absence of federal or personal income tax across the UAE is a significant draw for individuals, particularly those on a high income looking to relocate from a country where they are taxed at the higher level of between 40% and 50%. This lack of personal tax means that even on a Golden visa, there is an opportunity to maximise earnings.

Lifestyle and culture
There are many cultural and educational elements adding to the emirates’ appeal. Along with many world-class private schools, Dubai and Abu Dhabi in particular scored highly on stability, infrastructure and education in Forbes’ 2024 Best Cities to Live in the World report[1]. Living here provides so many leisure experiences – whether you want to shop, eat at award-winning restaurants, world-class sport or concerts there really is something for everyone.

Praxis in the UAE
Under UAE law, Dubai and Abu Dhabi each have their own Financial Free Zone, with laws and regulations in line with international standards. The Dubai International Finance Centre (DIFC) is an independent jurisdiction within the UAE and an advanced financial center with a unique legal and regulatory framework based on principles of common law. Marking 20 years, the DIFC was launched in 2004 as part of the emirate’s strategic vision to diversify its economy and attract inward investment.

From its beginnings in 2015, the Abu Dhabi Global Market (ADGM) is now one of the world's largest financial districts, covering 14.38 million sqm[2]. Having attracted the world’s top tier financial services businesses and professionals, it has an established network of the world’s leading lawyers, tax advisers and trustees, including Praxis, who provide a comprehensive range of financial services.

Having established an office in Dubai in 2009 and in ADGM during its infancy, Praxis is one of many global financial services businesses to have invested in relocating experienced staff from other international financial centres. Having started my financial services career in Jersey in 2006, I spent a significant amount of time travelling to the Middle East to meet private clients and their advisers prior to relocating to Dubai in 2022 and now also holding a Golden visa. Joining fellow Jersey expat, Dan Toft, and other senior colleagues with international private wealth and corporate services experience across London, Ireland, Malta and Singapore, we are an example of how the emirates attract talent from all over the world.

We are proud of our history in the region, being the first company granted a trustee licence by the ADGM Financial Services Regulatory Authority in 2016, making us one of only three businesses licenced to provide trust services in the jurisdiction. The following year, we were the first fund administrator authorised in the ADGM to offer a full suite of fund administration services and in 2021, we further expanded our services to include Corporate Service Provider (CSP) activities under a new framework.

After relocating to the UAE in early 2022, I subsequently successfully applied for a Golden visa using the streamlined process that facilitates ease of access for eligible individuals. The process involves applying through the Federal Authority for Identity and Citizenship (ICA) or Dubai's General Directorate of Residency and Foreigners Affairs (GDRFA) portals. I provided relevant documentation demonstrating my eligibility, which included proof of my professional achievements. The system is designed to be user-friendly, with clear guidelines and support available, ensuring that qualified applicants can secure their long-term residency with relative simplicity and efficiency and the whole process took less than one month to complete.

Dubai real estate trends

UAE real estate broker Allsopp & Allsopp’s latest Dubai property market report[3] showed ‘impressive growth’ across all residential sectors, with over 72,500 millionaires now living here. Under the Golden visa scheme, a real estate investor looking to purchase a property valued at a minimum of AED2m (GBP425,000 at time of writing) can apply for a 10-year renewable Golden visa, with spouse, children and parents able to be sponsored. With real estate investors often looking to establish a foundation or special purpose vehicle (SPV) to hold their asset, we are seeing an increase in interest in our corporate services, in line with the widely reported growth in the real estate sector.

Along with the structuring options in the region, as an independent global group, our clients also have access to our multi-jurisdictional expertise. Our team has built a wealth of experience and commercial insight working with real estate professionals in all sectors of the market – both offshore and onshore.

Conclusion

Using the Golden visa regime to relocate is fast and simple, with living here providing many lifestyle and financial benefits. Alongside these, the emirates have attracted a first-class financial services infrastructure able to support high-net-worth relocators in all aspects of their professional and personal lives.

Find out more about our corporate services and private wealth services.

Please note that this article is intended to provide a general overview of the matters to which it relates. It is not intended as professional advice and should not be relied upon as such. Any engagement in respect of our professional services is subject to our standard terms and conditions of business and the provision of all necessary due diligence. © Praxis 2023

Golden visa details correct as at August 2024. Please refer to the UAE government website for the latest information.

[1] https://www.forbes.com/sites/laurabegleybloom/2024/06/26/the-20-best-cities-to-live-in-the-world-ranked-in-a-2024-report/

[2] https://www.adgm.com/about/overview

[3] https://www.allsoppandallsopp.com/dubai/about-us/news-videos/1395-The-Allsopp-&-Allsopp-Dubai-Property-Market-Report-for-H1-2024!