Why owners want property out of their personal name
Most Dubai property is bought in a personal name. That works well while the owner is alive and well. The difficulty comes later. When a sole owner dies, the property passes through a UAE court process, and bank accounts and title can be frozen until it is complete. Families living in different countries can spend months gathering attested documents before anything can be sold, let or refinanced.
Holding property through a foundation changes that. The foundation is a legal entity in its own right and does not die, so the founder's death does not transfer the property. The By-Laws set out who benefits and who takes decisions, and the foundation's council can act straight away.
The question we are asked most often is whether moving the property affects a Golden Visa. For many owners it does, so the order of steps matters.
The Golden Visa ownership rule
The property route to the 10-year Golden Visa requires property with a purchase value of AED 2 million or more. Dubai Land Department's service describes this as property wholly owned by the investor under the name of the applicant. GDRFA places a lien on the property to ensure continuity of ownership, and it cannot be disposed of during the residency period.
What this means in practice. Moving the property behind your Golden Visa into a foundation or company requires the lien to be released, and the visa then has no qualifying asset. Unless you have planned for it, you should expect the visa to be cancelled or not renewed. We are not aware of any official route that lets a foundation-held property support a property-route Golden Visa.
Two ways to restructure and keep your residency
1. Keep one qualifying property in your name and move the rest
If you own more than one property, keep AED 2 million or more in your own name to support the visa, and move the others into the structure. Many families do this with a main home kept personally and investment or holiday properties held by the foundation. The personal property can be covered by a registered will in the meantime.
2. Move to a different Golden Visa route first
The Golden Visa is not only available through property. Other investor routes include an AED 2 million deposit held with a UAE bank for at least two years, and routes linked to business ownership or tax contribution. Once residency is secured on a different basis, the property can move into the structure without leaving you exposed. Each route has its own conditions, so we confirm eligibility with you before anything is transferred.
In both cases, the visa position is confirmed with the authorities before the transfer, not after it.
Which entity can hold Dubai property
Dubai Land Department only registers freehold title to approved entities. Two are well established:
- RAK ICC companies, under an agreement between Dubai Land Department and RAK ICC, with a RAK ICC No Objection Letter.
- DIFC foundations, with a No Objection Certificate from the DIFC Registrar.
A common structure is a RAK ICC Foundation that owns a RAK ICC company, with the company holding the title. Where a company is owned by a foundation rather than by individuals, Dubai Land Department approval of the ownership chain is needed, which we arrange as part of the process.
What the transfer costs
| Item | What to expect |
|---|---|
| Dubai Land Department transfer fee | 4% of value for a sale. Transfers recorded as gifts to companies are listed at 0.125% (minimum AED 2,000), but whether that rate applies to your own structure is at DLD's discretion. Budget for 4%. |
| Title deed and trustee fees | Fixed administrative fees, higher for properties worth AED 2 million or more |
| Mortgage | Lender consent required, usually meaning repayment before transfer |
| Off-plan property | Developer No Objection Certificate, normally once a minimum percentage has been paid |
| Structure | RAK ICC Foundation around AED 35,000 all in, subject to complexity, with annual fees typically AED 12,000 to 15,000. Holding company costs are additional. |
Corporate tax: the trap to avoid
An individual holding Dubai property without a business licence is outside UAE corporate tax. A foundation is a taxable person by default. To stay outside the charge, the foundation should apply to the Federal Tax Authority to be treated as a transparent Qualifying Family Foundation, and keep meeting the conditions: identified individual beneficiaries, holding and managing family assets, and no business activity. Short-term holiday-home letting can look like a business, so how the property is used needs thought before the transfer.
The right order of steps
- Review your properties, mortgages, visa basis and family, and decide which properties move and which stay personal.
- Secure your residency: keep a qualifying property in your name, or move to another Golden Visa route first.
- Establish the RAK ICC Foundation and draft the By-Laws, including who benefits and who decides if you cannot.
- Incorporate the holding company and obtain the RAK ICC No Objection Letter and Dubai Land Department approval.
- Clear the property for transfer: lender consent, developer No Objection Certificate, and lien release if applicable.
- Register the transfer at Dubai Land Department and update service charges, utilities and insurance.
- Apply for Qualifying Family Foundation treatment and keep the structure compliant each year.
If you also own property in Spain, see holding Spanish property through a UAE foundation.