Relaxed thresholds, new opportunities: Exploring the updated Golden Visa program in the UAE for real estate investors

Golden visa: a new path to the UAE

The Golden Visa of the United Arab Emirates, initiated in 2019, has established itself as an outstanding opportunity for attracting global talent and investors. As noted in the review of Golden Visas in May 2023, this program offers long-term residency for various categories, including investors, entrepreneurs, specialists, and outstanding students. A key aspect of the appeal of this visa is the possibility of stable residency and access to a growing economy. This blog discusses the recent announcement regarding updated criteria for the 'investor verification visa' category, highlighting the changes and their implications.

Historical context: the category of visas for investor checks

To understand the recent changes, it is necessary to look at the original conditions of the 'investor visa checks' category. This category was originally designed for high-income individuals and required significant investments in residential real estate — no less than2,000,000 AEDApproximately544,588 US dollars). But the rules were also very specific: for real estate under construction, it was necessary to achieve50%completion and minimum investment in1,000,000 AEDabout272,294 US dollarsFor a burdened mortgage, a similar minimum payment is required. Although these conditions were available to many, many potential investors also remained excluded.

Recent changes: a new paradigm

The recent announcements from the UAE government in January 2024 bring significant changes to the conditions for real estate investment, particularly regarding investments in unfinished properties, those encumbered by mortgages, and the property appraisal process. Let's take a closer look:

• Real estate under construction:Now the investor just needs to obtain a No Objection Certificate (NOC) from the developer. This certificate should confirm the payment of any amount related to investments in real estate during the construction phase. The requirement for the cancellation of...50%The completion is a noticeable difference from the previous rules.
• Property encumbered by a mortgage:Investors are now also required to provide a No Objection Certificate (NOC) from the bank, confirming the payment of any amount, which replaces the previous minimum payment requirements.1,000,000 AED.
• Property valuation:The latest changes include the ability to take into account the current market value of real estate. The assessment must be at least2,000,000 AEDand leads to the fact that the decision on value is made exclusively by the Dubai Land Department (DLD), replacing the previously used method based on data in the title deed.

Consequences: why is it important?

These changes can significantly simplify the process of obtaining the desired Golden Visa, opening the doors of the UAE to a wider range of investors. The new conditions allow for a different approach to investments, enabling investors to invest in unfinished projects at any stage and freeing them from the obligation to achieve.50%Completion of the project.

Visa application: citizens of the United Kingdom

Alongside the changes in visa requirements in the UAE, there is a growing interest among British citizens in residency programs through investment. The driving force behind this interest is the economic difficulties in the UK, including issues with the cost of living, upcoming changes in tax legislation, and uncertainty in the political situation. A significant number of British citizens are considering alternative paths for their future plans. The revised conditions of the UAE Golden Visa present an attractive alternative for those seeking financial stability and a high quality of life outside the UK.

Don't miss the chance

Given the constantly changing regulatory environment in the UAE, stakeholders must act as quickly as possible. Changes in UAE immigration legislation often occur without prior notice, highlighting the importance of starting the application process early. The UAE continues to evolve as a hub of opportunities and stability. These significant changes to the Golden Visa program make the path to long-term residency in the UAE more accessible than ever. To determine your eligibility for the UAE Golden Visa for real estate investors, use Fragomen's free eligibility assessment tool.

Would you like to know more?

For more information on the requirements for long-term residency in the UAE, please contact Nofirata Mojidi, Senior Private Client Manager. This blog was published on January 30, 2024, and changes occur regularly. To stay updated on the latest immigration news worldwide, subscribe to our notifications and follow us on LinkedIn, X, Facebook, and Instagram.