Dubai Bling: UAE's Golden Visa Has Rich Indians Changing Their Investment Strategy
From skipping immigration lines to saving tax, the visa offers Indians various perks.
Dubai has been an investment hotspot for the rich Indian for long. Top celebrities like Shah Rukh Khan, Salman Khan, Ranveer Singh own property in the city and there is a reason for it — Golden Visas. Investors who can invest a minimum of $550,000, which is a little over Rs 4.5 crore, in property are being granted 10-year golden visa in the United Arab Emirates.
The lure of a property in Dubai, Abu Dhabi, Ajman and other cities in the seven-emirates, with added benefits of the Golden Visa is showing in the Indian expat's behaviour as well. While the West has been a preferred get-away for Indians for decades, UAE has emerged as a popular alternative for several individuals.
According to the General Directorate of Residency and Foreigners Affairs in Dubai, the number of golden visas issued in all categories increased to 79,617 in 2022, up from 47,150 in 2021.
"(For) Indians wanting to own real estate—luxury real estate—property is easily accessible and available and there is a supply and demand and this has been consistent in the last several years," said Moin Ladha, partner at Khaitan and Co.
First, what is a golden visa and what are its benefits?
A golden visa is a residency-for-investment type of arrangement, wherein, individuals can obtain residency or even citizenship in another country by investing in its economy.
Moreover, it offers a gateway to better healthcare, business, education, and tax incentives. These perks, however, can differ from country to country.
What Makes UAE's Golden Visa Attractive?
Traditionally, the more popular destinations for these visas, such as Portugal, Malta, Greece and Singapore, provide visa-free access to over 150 countries if an individual is willing to shell out $100,000-$1 million.
"The proximity of UAE to India and similarity in cultures is one of the reasons why 30% of the expat community consisted of Indian residents. Therefore, UAE's golden visa has been very popular among Indian indivduals," Ladha explains.
What helps the UAE's case is that its a 10-year golden visa and it can be renewed after expiry and does not require any sponsorship, which is a requirement for visas in several western countries. Rather, the visa extends to family members and domestic help as well.
Apart from this, there is no residency clause that needs to be followed for eligibility. This means that one does not have to be a resident to apply for the visa, which is another prerequisite in western countries.
UAE is also among the top 30 countries in the world for ease of doing business, according to Henley and Partners. "The flexibility, the ease of operations and the support that is received in certain jurisdictions—that could be one of the key reason why an individual, for a type of business, for certain objectives could consider, evaluate and choose certain jurisdictions," Ladha said.
The country also has a favorable tax regime for investors—with no personal income, capital, net worth, or withholding tax (except for those levied in the domestic banking and oil sectors), and several double-tax treaties in place, Henley and Partners said.
The golden visa also does not take long to be issued. If one can fulfill the requirement, they can have the visa within five to 30 days.
Edge Over Other Golden Visas
Some other golden visas popularly sought by individuals include countries like Greece and Portugal.
While the golden visa offered by Greece has similar perks, it has a bar on the age of children eligible for the visa. Children of the applicant have to be under the age of 21 years to be eligible, according to Immigrant Invest. The UAE's golden visa does not have any such bar.
The visa also has to be renewed every five years, instead of the UAE's 10 years.
Golden visa for Portugal is more complicated. An individual has to invest a minimum 250,000 euros, under the support to art and restoring cultural heritage action to apply. Children under the age of 18 years are eligible for it. However, children of applicants between the age of 18-26 years have to be dependents, living with their parents or be studying in university to be eligible.
One also has to be residing in the country for seven days per year to keep their visa valid. The visa comes up for renewal a year after grant, following which, it has to be renewed every two years, according to Immigrant Invest.
Portugal's golden visa also has a longer issuance time, and takes between eight and ten months, according to Immigrant Invest.
While golden visas for Western countries still have their sheen, the UAE looks like it is emerging as a preferred choice. Some may even say if it's good enough for King Khan, its good enough for them.