Introduction:

It is no secret that the UAE has been attracting investors and foreign talent throughout recent decades. With this in mind, in 2019, the UAE government has announced the golden visa program for wealthy or highly skilled foreign nationals to remain legally in the country and ensure the future of their families and their businesses. Depending on the applicant's eligibility category, this visa has a validity period of 5–10 years. Furthermore, if one meets the requirements, one can apply on his/her own, without the need for a local sponsor.

The Golden Visa Program:

The UAE Golden Visa allows foreign individuals to live, work, and study in the UAE without the need for a national sponsor or the ownership of a business on the UAE's mainland. Furthermore, it allows for an application for a 10-year or 5-year permit. Upon expiry, the visa would be extended as long as residents continue to meet the terms and conditions of the visa.

The Golden Visa (10-year visa):

In order to obtain an Investor Golden Visa for 10 years in the UAE, one must invest at least AED 10 million in the public sector and meet one of the following requirements:

     - A minimum AED 10 million investment into a domestic investment fund;

     - Establishing a business in the UAE with a minimum capital of AED 10 million;

     - Partner with an already-established UAE-incorporated business or launch a new business with a minimum AED 10 million in share capital.

     - Investing a minimum of AED 10 million in any area, with the condition that non-real estate sectors account for at least 60% of overall investment.

Furthermore, when investing, one must ensure that:

     - The money invested cannot be financed with a loan.

     - You maintain the investment for a minimum of three years.

    - AED 10 million of financial solvency should be maintained. As per the experience of professional consultants within the jurisdiction, a letter from the bank in Arabic should mention that the applicant cannot use this deposit amount for 3 years, and if the applicant uses it then the bank should notify immigration.

The Silver Visa (5-year visa):

Investors who fall into the following categories are eligible to apply for a 5-year residence visa:

• Entrepreneur: Entrepreneurs seeking to launch a new business or grow an existing one in  the UAE can apply for a five-year Silver Visa. The entrepreneur  must invest at least AED 500,000 in expanding their business in the UAE.

• Investors: Prior to investment, one has to ensure that:

        - The investor should invest in a property with a gross value of at least AED 2 million.

        - The money invested cannot be financed with a loan.

        - The property should be maintained for a minimum of three years.

Benefits of Golden Visa:

     - Entry visa for six months with multiple entries to proceed with residence application.

     - Growing property market making the Golden Visa program an excellent investment choice for those who apply.

     - A visa that is self-sponsored since an employer is not necessary.

     - Ability to stay outside the UAE for longer than the standard six-month limit to maintain their residency visa validity.

     - Sponsoring their family members, including spouse and children regardless of their ages.

     - Large expat community ana rather safe place to live.

Conclusion:

The introduction of the UAE Golden Visa program is a great initiative to make the UAE amongst one of the top destinations for business and investment. The opportunity may be worth taking into consideration as it is something that can allow applicants and their families to live their lives to the fullest in the region. The UAE has opened up its doors to businesses and investment from the rest of the world, encouraging them with free trade zones, 100% capital repatriation, and limited corporate taxation. In a nutshell, the Golden Visa scheme in the UAE is an excellent platform for investors and entrepreneurs to unlock the growth opportunities of their respective businesses.

D’Andrea & Partners Legal Counsel and PHC Advisory Tax & Accounting (companies of DP Group) offer full-scale legal, compliance, and tax advisory support and consulting to businesses willing to or already conducting business both in mainland UAE and the Free Zones. For more information or in case of any questions, please feel free to contact us at info@phcadvisory.com.