Buying Property in the UAE Through a Company vs Individual

Dubai’s real estate market has become one of the world’s most active hubs for cross-border investment, attracting billions in foreign capital each year thanks to the city’s stability, strong yields, and position as both a regional base and a global lifestyle destination.

While it’s well known that foreigners can purchase freehold property in designated areas. Less familiar is the fact that they can do so either as individuals or through a recognised company. This distinction shapes not only the immediate costs and compliance requirements but also how an investment is managed and passed on over time.

This article examines those differences in detail, weighing the practical and regulatory considerations against longer-term factors such as inheritance planning and exit strategy.

Overview of ownership options

When people talk about freehold property in Dubai, what they usually mean are the designated zones open to foreign buyers. In practice these zones cover most of the city’s most popular neighbourhoods, from Downtown to the Palm, and the list has only expanded over time. UAE and GCC nationals are free to buy anywhere, but international investors are given two main routes: registering property in their own name or holding it through a company.

Most buyers still choose the straightforward path of individual ownership, with the title deed issued directly to them as a natural person under Dubai Land Department rules. Using a company is less common, yet it is an option that changes how the asset is treated for tax, succession, and compliance. That could mean a mainland firm, a free zone entity, or an offshore special purpose vehicle, each with its own costs and consequences. It is a distinction that tends to be overlooked at the point of purchase, yet it can have a lasting impact on how the investment is managed.

Individual ownership: Key features

Most overseas buyers choose to buy as an individual, mainly for ease of financing and the convenience of a straightforward process. In designated freehold zones, expats can purchase property outright and secure a title deed once the transfer is registered with the Dubai Land Department. Registration and transfer fees typically amount to about four per cent, and transactions are usually processed without delay, which explains why this route dominates the market.

Financing also tends to be easier. Banks are used to lending against property held in a person’s name, and mortgage terms are generally clearer and more accessible than when the asset sits inside a company. The main drawback lies in succession. Unless a will is registered, local inheritance rules apply, which can complicate matters for families. There is also less scope to structure ownership in ways that suit tax planning or long-term holding strategies. For many buyers this isn’t a deal-breaker, but it’s worth weighing against the convenience of the set-up.

Company ownership: Key features

Buying through a company is less straightforward than holding property in your own name, yet it opens up options that some buyers find useful. Special purpose vehicles can be set up in free zones or offshore jurisdictions such as JAFZA, DIFC or ADGM, giving the owner shares in the company rather than direct title to the property.

The trade-off is cost and administration. Licences must be obtained and renewed, and compliance has to be maintained. In return, assets can be ring-fenced, shares can be issued to family members, and succession can be managed with greater certainty. Some investors also value the added privacy or the ability to fold the property into broader tax planning. For those building a portfolio or managing cross-border holdings, this type of structure can justify the extra steps.

Succession and estate planning

The choice between holding property directly or through a company also shapes how succession is handled. Holding property in your own name means inheritance follows Sharia rules unless you have a registered will in place. For many expatriates this makes a DIFC or ADGM will a practical safeguard, as it allows them to set out how assets should pass to family members.

Company structures work differently. Ownership lies in the shares, which can be transferred on death or gifted during a lifetime. This can reduce uncertainty and give investors more control over succession. It also allows families to plan for continuity, since shares in a special purpose vehicle can be passed down in a more straightforward way than bricks and mortar.

Both routes can be effective, but they point to different priorities. Individuals often rely on wills to protect their heirs, while investors building portfolios sometimes favour holding companies to keep succession simpler.

Taxation and compliance

For individuals, property income is untaxed. There’s no personal income tax and no capital gains tax, so any rental yield or sale proceeds are kept in full.

Company structures follow different rules. The UAE’s corporate tax applies in principle, but most passive real estate income is exempt. The distinction between mainland and free zone entities can shape how these exemptions are applied, which is why investors often take advice before settling on a structure.

Compliance is also heavier for companies. Audited accounts, annual filings and other regulatory reports are part of the package. While these obligations add cost and oversight, they can also give investors a clearer financial record and, in some cases, access to banking or financing options that are harder to secure when holding property in a personal name.

Choosing the right route

In practice, the split is easy to see. Individual ownership is the default for most smaller buyers and end-users, who value simplicity and lower costs. Company structures are more often used by family offices, institutions, and high-net-worth buyers who want greater flexibility in management, structuring, and succession.

The real question isn’t which route is possible, but which aligns with the investor’s aims. Those seeking a straightforward purchase may find an individual title sufficient. Those building larger or longer-term positions often benefit from holding through a company. In both cases, early legal and tax advice helps ensure the structure works as intended.