Buying Property in Dubai Through a Company: Which Entities DLD Accepts, and the Cost

You can buy Dubai freehold property through a company, but only through an entity the DLD accepts: Dubai mainland and free-zone companies, JAFZA offshore companies, DIFC and ADGM entities including foundations, and, by some accounts, RAK ICC companies. The company pays the same 4% DLD transfer fee, and moving a unit you already own into a company is a new transfer that normally attracts the 4% again.

Key takeaways

• The entity must be on the DLD's accepted list and, for offshore vehicles, bring a No Objection Letter from its home registrar.
• A DIFC foundation is the vehicle lawyers now reach for most for a family holding, mainly for succession and confidentiality.
• Putting an existing unit into your company counts as a sale for DLD purposes, so budget for another 4% unless the DLD grants a restructuring waiver.
• Rent earned through a company falls under UAE corporate tax: 0% up to AED 375,000 of taxable income, 9% above, and residential rent does not count as free-zone qualifying income.
• Banks lend to companies on commercial terms, typically 75% to 80% of value at most, and underwrite the company rather than you.

Which entities the DLD registers

Foreign individuals can already buy freehold in their own names, as our post on whether foreigners can buy property in Dubai explains in its section on buying in a company name. The company route adds rules of its own. Rupee figures in this post use AED 1 = about Rs 26.1.

Treat RAK ICC with care. Because the sources conflict, confirm with the DLD or a registration trustee before forming one for a Dubai purchase. Where RAK ICC ownership is accepted, one requirement quoted is that its registrar will issue the NOC only if the company is in good standing and has only individual shareholders.

Documents and approvals

Expect the trustee office to ask for:

• the certificate of incorporation or trade licence, and the company's commercial registration and tax numbers;
• the memorandum and articles of association;
• a board resolution authorising the purchase and naming the signatory;
• passport copies of every shareholder and director;
• for an offshore or out-of-Dubai entity, the No Objection Letter from its registrar;
• Arabic translations and attestation for anything issued outside the UAE.

The title deed then issues in the company's name. The 4% DLD transfer fee and the usual trustee charges apply exactly as they would to an individual.

Moving a unit you already own into a company

This is where many owners get a nasty surprise. Any change in the legal owner, even to a company you own outright, is a transfer. Lawyers' and brokers' guides say the 4% fee applies, calculated on the transaction value or the DLD's valuation. A reduction or waiver is possible only by application, typically in a genuine restructuring where the beneficial owners are identical on both sides, and one guide stresses that no exemption is automatic.

A worked example

Deciding late costs AED 80,000, about Rs 20.9 lakh, on a flat worth about Rs 5.22 crore. If a company is the right structure, set it up before you sign the sale agreement.

Running costs and corporate tax

Registrar's fees are the smaller part. The 2026 RAK ICC schedule charges AED 3,250 to incorporate a company for a year and AED 3,950 to renew it for a year, about Rs 1.03 lakh, and a registered agent's fee comes on top, often more than the registrar's. Guides put a first year with an agent at AED 10,000 to AED 15,000. A DIFC foundation's registration fees are a few hundred dollars a year, while legal drafting is quoted at around AED 12,000.

Tax is the bigger change. Our guide to property tax in Dubai explains why an individual collecting rent in their own name is outside UAE corporate tax under Cabinet Decision No. 49 of 2023. A company is different:

• It is within the corporate tax system and must register and file, even if it owes nothing.
• Taxable income up to AED 375,000 is taxed at 0%, and the excess at 9%.
• Small business relief lets a company with revenue of AED 3 million or less elect to be treated as having no taxable income. Sources disagree on the end date: some say tax periods ending by 31 December 2026, others that it has been extended to 2029.
• A free-zone company does not get the 0% qualifying-income rate on residential rent. Residential property income is non-qualifying wherever it is.

On a portfolio producing AED 500,000 of taxable income, tax would be 9% of the AED 125,000 above the threshold, AED 11,250, about Rs 2.94 lakh, unless small business relief applies.

Mortgages for a company buyer

Banks do lend to companies, but they underwrite the company: its financial statements, its ownership and why it holds the property. Expect board resolutions, and in practice shareholder guarantees for a small holding company. Published commercial mortgage limits run at 75% to 80% of value, and each bank sets its own. If you need a loan, talk to the bank before choosing the vehicle. Our guide to a Dubai mortgage for non-residents covers the personal route for comparison.

Is it worth it? Who it suits and who it doesn't

• It can suit families holding several units who want one vehicle to pass on, co-owners who want shares they can transfer without re-registering the flat, and owners who value keeping their names off the title deed.
• It rarely suits a buyer of one flat for personal use or modest rent. The annual fees, a corporate tax registration, harder mortgages and the risk of a second 4% outweigh the benefits.
• Succession is the strongest argument, but a registered will can also solve it. Compare the two in our guide to wills and inheritance for Dubai property before forming anything.

For Indian buyers

A resident Indian can buy a Dubai flat in their own name with money sent under the Liberalised Remittance Scheme, and guides treat a home bought for personal use or rent as permitted. A company is harder. Under the Overseas Investment Rules, 2022, overseas direct investment in a foreign entity engaged in "real estate activity", defined as buying and selling real estate, is barred, and resident individuals may invest only in operating entities. A company or foundation that exists mainly to hold a flat does not fit those rules comfortably. Take FEMA advice before you form one, and report the holding in Schedule FA either way. Our note on tax on Dubai property for Indian buyers covers the reporting.

Frequently asked questions

Can an offshore company own property in Dubai?

Only an offshore company from a registrar the DLD accepts. JAFZA offshore companies can own property in approved freehold areas under JAFZA's 2018 regulations. Sources disagree on whether a RAK ICC company can hold Dubai property directly, so confirm with the DLD first. Companies from other offshore jurisdictions generally cannot register a Dubai title.

Do I pay the 4% DLD fee again to move my flat into my own company?

Usually yes. A change of legal owner is a transfer, even when you own the company, so the 4% fee applies on the value. A reduction or exemption may be granted on application in a genuine restructuring with the same beneficial owners, but nothing is automatic. Deciding on the structure before you buy avoids the second fee.

Does a company pay corporate tax on Dubai rental income?

A company is inside the UAE corporate tax system and must register. Taxable income up to AED 375,000 is taxed at 0% and the rest at 9%. Residential rent is not qualifying income for a free-zone company, and small business relief may help where revenue is AED 3 million or less.

Why do people use a DIFC foundation for Dubai property?

Mainly succession and confidentiality. The foundation holds the title, so the property does not pass through a probate or inheritance process when the founder dies; its own rules decide who benefits. A 2017 memorandum with the DLD lets DIFC foundations own freehold in designated areas. Registration fees run to a few hundred dollars a year.

Can an Indian resident buy Dubai property through a company?

It is difficult. The Overseas Investment Rules, 2022 bar investment in a foreign entity engaged in real estate activity, and resident individuals may invest only in operating entities. A company that exists to hold a flat sits badly with those rules. Buying in your own name under the remittance scheme is the straightforward route.

If you are weighing a company or foundation for a Dubai purchase, Realty Hunting can help you compare the costs before you sign anything.