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The UAE remains one of the most attractive real estate markets in the world — driven by a diverse international population, investor-friendly policies, and rental yields that consistently outperform London, Singapore, New York and Hong Kong.
Traditionally, many investors used offshore companies to purchase property in Dubai and Abu Dhabi. But in 2025, the landscape has changed:
This article explains how property ownership works today, why offshore companies are no longer the default option, and why DIFC Family Foundations have become the most popular structure for holding UAE real estate – particularly for families, international investors and high-net-worth individuals.
Offshore companies (e.g., RAK ICC, BVI, Cayman) have historically offered:
While these advantages still apply, offshore companies face new realities:
Offshore entities are not UAE-resident for tax purposes – but rental income, capital gains, and operational profits from UAE property are now subject to UAE corporate tax unless a specific exemption applies.
Many UAE banks require:
Some now refuse mortgages to offshore companies entirely.
Offshore companies typically require:
This can slow down inheritance transfers dramatically.
Not all offshore companies can own property in every freehold area.
They must be from approved jurisdictions (e.g., RAK ICC, JAFZA Offshore, DIFC).
For these reasons, savvy investors are moving toward onshore private wealth vehicles – specifically the DIFC Family Foundation.
The New #1 Structure for UAE Property Ownership
Over the past 24 months, the DIFC Foundation has become the most popular vehicle for:
And most importantly – applying for tax exemption under the UAE Corporate Tax Law.
A DIFC Foundation is a legal entity created under DIFC law that allows individuals or families to hold and protect assets. It acts similarly to a trust, but with a stronger legal structure and clearer governance.
Key functions for property owners:
Unlike a company, it has no shareholders – only a founder, council and beneficiaries.
This makes it extremely stable for long-term wealth management.
This is the game changer.
Under UAE Corporate Tax Law (Federal Decree-Law 47/2022), a DIFC Foundation used for family wealth can apply for “Family Foundation Transparency Treatment”, which:
Once approved, the foundation is treated as a transparent vehicle, meaning:
…are attributed to the individual beneficiaries – who, as natural persons, pay 0% tax on passive income under UAE law.
This exemption is not automatic – you must register for corporate tax, and then apply for the exemption through the Federal Tax Authority (FTA), and the structure must meet strict criteria.
Knightsbridge Group handles this process end-to-end.
Offshore property-holding companies pay 9% corporate tax on UAE-source income.
A DIFC Family Foundation – once approved – pays 0%.
A foundation avoids:
Assets pass seamlessly according to the foundation charter.
Property held in a foundation is legally separate from:
Most UAE banks:
This is a major advantage.
DIFC operates under:
This makes it safer than Caribbean or remote island offshore entities.
A DIFC Foundation may purchase any freehold property in Dubai (subject to DLD process), including:
DIFC Foundations are approved ownership structures by both:
0% Tax (If Family Foundation Exemption Granted)
The single biggest benefit.
Full foreign ownership
No local partner required.
Lifetime succession structure
No probate.
No forced-heirship rules.
No cross-border legal complications.
Confidentiality
Your name does not appear on title – the foundation does.
Strongest asset protection in the region
A foundation ring-fences assets from personal risk.
Onshore credibility (not offshore uncertainty)
Banks, regulators and institutions prefer onshore DIFC vehicles.
Ideal for multi-jurisdictional families
Foundations work perfectly for families with:
| Feature | Offshore Company | DIFC Foundation |
| Corporate Tax | 9% on UAE property income | 0% (if exemption granted) |
| Succession | Requires share transfer | Automatic inheritance |
| Privacy | Medium | High |
| Banking Ease | Moderate/Declining | Excellent |
| Asset Protection | Good | Excellent |
| Regulatory Strength | Varies by country | World-class (DIFC) |
| Best for | Simple holdings | Family wealth + long-term strategy |
Knightsbridge Group is one of the region’s most experienced advisors for:
Our expert team handles everything:
With over 200+ years of combined advisory experience, we provide a complete, future-proof structuring solution for investors and families around the world.
Your structure is just as important as the property you buy.
If you want:
…then a DIFC Family Foundation is the optimal solution in 2025.
Speak to Knightsbridge Group today to begin structuring your UAE property holdings the smart, compliant and tax-efficient way.
We look forward to guiding you.
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Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.
Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.
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