Approximately 4,300 Indian millionaires are expected to move abroad by 2024, with most of them preferring to relocate to Dubai, UAE, according to a recent report on private wealth migration by Henley & Partners. Here’s an overview of how the Golden Visa program works.
Application process
The most popular way to apply for a UAE Golden Visa for long-term residency in Dubai is through a property investment. A minimum of AED 2 million (around US$100,000) is required. ₹An investment of Rs 4.57 crore is required to be eligible for the Golden Visa.
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“Golden visas are valid for 10 years and can be renewed thereafter. Once the requirements have been met, pending initial approval of the application, the successful applicant is issued a six-month multiple-entry visa and travels to the UAE to apply for an ID card and undergo a medical check-up,” explained Rohit Bhardwaj, Country Director for India and Head of Private Clients at Henley & Partners.
“Then full approval is obtained and the person receives the residence visa. The processing time for the residence application is more than two months,” he added.
Purchasing real estate in Dubai also involves paying a Dubai Land Department (DLD) fee of 4% of the property value. “This fee must be paid immediately at the time of registering the property,” says Karan Batra, a chartered accountant who operates in India and Dubai.
Other costs vary from AED 4,000 ( ₹91,000) to AED 4,500 ( ₹1.02 lakh), which includes government processing fees. Often, real estate developers in Dubai take care of these costs to attract buyers. In fact, Golden Visas can be obtained directly with the help of real estate developers, who offer support throughout the process. You can also consult with consultants and advisors for further assistance.
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Certain qualified individuals can also apply for the Golden Visa, without the need to make an investment. “The Golden Visa programme is also aimed at individuals with specialised talents and skills, including scientists, senior executives, researchers and creative professionals. This emphasis on attracting top-level talent has driven the popularity of the visa,” said Abhishek Menon, Executive Partner for the Middle East and Africa at Multipolitan, a global migration platform.
The issuance of Golden Visas is regulated by the General Directorate of Residency and Foreigners Affairs (GDRFAD) in Dubai.
There are other options too, but they are not allowed under the Foreign Exchange Management Act (FEMA), which is overseen by the Reserve Bank of India (RBI). For example, the Golden Visa now allows borrowing to buy a property, but FEMA does not allow it because it means leveraging foreign currency. Even buying under-construction properties is in a grey area. “If the construction work exceeds the LRS payment, it can be considered a contingent tax liability, which could violate FEMA regulations,” said Vijay Thirumalai, co-founder of Goldwater Technologies, a wealth technology platform focused on global mobility.
A fixed deposit of AED 2 million in a specific bank is also an option, but it is also in the grey area now.
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“It seems that investment in overseas fixed deposits is not specifically covered in the list of permitted investments. At the same time, it is not covered in the list of investments that are not allowed,” said Prakash Hegde, a Bengaluru-based chartered accountant.
The Golden Visa cannot directly lead to citizenship. To apply for an Emirati passport, one must live in the UAE for at least 30 years and citizenship can be granted to those who have demonstrated exceptional service. In addition, proficiency in Arabic is mandatory.
Benefits of the Dubai Golden Visa
Obtaining a ten-year renewable long-term residency in Dubai can be an option for wealthy Indians looking for a second home in an international hub like Dubai. For business owners with international operations, a Golden Visa can prove useful as Dubai is well connected globally. For a Golden Visa holder, starting a business in Dubai is easier. Also, a Golden Visa holder can open a bank account remotely.
After obtaining the Golden Visa, one can live, work and study in Dubai or other cities in the UAE. Dubai also offers various tax benefits for people who earn a salary in Dubai or those who run a business. For example, there is no personal income tax in Dubai. The corporate tax rate on profits in Dubai is 9%, but in certain free trade zones there is no tax at all.
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Additionally, a Golden Visa holder can stay outside the UAE for more than six months without worrying about their residency visa losing its validity. Other residency visas require the person to re-enter Dubai within six months to ensure the visa remains valid.
Golden Visa holders can sponsor family members, including spouses, children and even domestic staff.
Should you opt in?
Dubai’s Golden Visa program was launched in 2019, largely to boost demand for its rapidly developing property market. The Golden Visa can be useful for global entrepreneurs seeking greater tax efficiency and better connectivity with the rest of the world. It also offers a valuable option for wealthy individuals looking for a second home close to India.
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