Business Structures for Your Dubai Property Investment

Anyone considering property in Dubai will quickly discover there is more to it than just attractive apartments and penthouses. Behind the scenes, there is much more to consider, particularly concerning your business structure and opening a bank account. Certainly in 2025, the rules and requirements are stricter than ever.

If you wish to purchase property through a company, there are several structures to choose from. A commonly used option is an LLC (Limited Liability Company). This structure offers credibility within the local market but requires a local sponsor to hold 51% of the shares. In practice, many investors use contractual agreements to retain control.

An alternative is to establish a Free Zone entity. This allows for 100% foreign ownership and can expedite the process. However, not all Free Zones permit the direct purchase of residential property on the mainland. Nevertheless, with a smart structure, for example via a holding company, this obstacle can be circumvented.

Offshore companies are also utilised, primarily as a vehicle to hold property. They are less expensive and require less administration. Be aware: since 2022, there have been restrictions on access to local banking services for offshore entities.

What You Need to Know About Bank Accounts, Licences and VAT

Opening a corporate bank account in Dubai is considerably more challenging in 2025 than before. Banks have increased their requirements, which include a residence visa, proof of residential address (such as a utility bill), a clear business plan or proven track record, and a physical or virtual presence in the UAE. In addition, banks often enforce a minimum balance requirement.

Furthermore, the Dubai Land Department (DLD) prefers transactions to be conducted through local banks. International transfers can lead to delays in the issuance of title deeds.

For those wishing to rent out properties via platforms such as Airbnb, an official trade licence has been mandatory since 2023. You must also consider VAT registration if you generate more than AED 375,000 in annual rental income.

Buying property in Dubai may sound simple, but it is not just about the location or the view. To do it properly, one must also delve into the legal and financial structure. This helps to avoid surprises and ensures you remain compliant.