Insights · AXD Real Estate Dubai
Can I Buy a Dubai Property Through a GmbH or Holding?
Can I buy a Dubai property through a GmbH or holding?
Yes. The Dubai Land Department accepts three acquisition structures: personal direct acquisition, RAK ICC offshore company, or German GmbH. Personal is the standard for individual investors; RAK ICC is the customary holding form for multi-property portfolios; the German GmbH is not privileged for real estate gains due to § 8b KStG (German Corporate Income Tax Act, participation income exemption) and leads to double taxation.
Structure comparison for DACH HNWI
| Structure | DLD acceptance | Setup costs | Suitability |
|---|---|---|---|
| Personal (natural person) | Standard | 0 | Single property, clear tax transparency |
| RAK ICC offshore holding | Recognized (Companies Regulations 2018) | USD 2,500–4,500 + USD 1,500–2,500 p.a. | Portfolio from 3+ units, estate planning |
| UAE free-zone company (DIFC, ADGM, JAFZA) | Only with explicit real estate license | USD 8,000–15,000 + p.a. | Operating structures, tax residency possible |
| German GmbH or UG | Accepted with apostilled HRB extract + POA | High (ongoing double taxation) | Rare — § 8b KStG does not apply to real estate |
Why the German GmbH rarely fits
§ 8b KStG exempts participation income between corporations at 95%, but applies only to a limited extent to real estate gains from third countries. Rental income of a Dubai subsidiary flows into the GmbH subject to the full 15% corporate income tax plus trade tax — on the UAE side, since the UAE Corporate Tax Law 47/2022, an effective 9% burden above AED 375,000 profit is added. Direct acquisition by the natural person remains the tax-clean default structure for DACH HNWI. A RAK ICC holding is sensible when portfolio consolidation or estate planning are the priority — for this, the complementary solution of the DIFC will exists.
What the DLD requires
- Memorandum of Association in English translation, apostilled
- Power of Attorney to managing director or authorized representative, notarized — see Power of Attorney Dubai
- Certificate of Incorporation or UAE Trade License
- KYC proof of the Ultimate Beneficial Owners (from 25% share)
- For German companies: HRB extract not older than 3 months
Sources
- RAK ICC, Business Companies Regulations 2018
- UAE Federal Decree-Law 47/2022 (Corporate Tax)
- § 8b Körperschaftsteuergesetz (participation income exemption)
- Dubai Land Department, Procedures Guide for Corporate Buyers
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