21 07 2020

Commercial real estate acquisition through an offshore company


One of the biggest advantages in opening an offshore company is the possibility of real estate acquiring on it. For these purposes, not only offshore companies are used, but also local companies with required physical office or production. It is worth noting that the demand for commercial real estate is growing steadily, which makes real estate attractive for investment at any time. Compared to residential real estate, commercial leasing is a bit more profitable. Many entrepreneurs seek to start financial activities in the territory of the actively developing UAE. Arriving in the UAE and starting a business, all entrepreneurs need to rent or buy office or warehouse space for their commercial purposes.

Types of the most sought-after commercial real estate in the Emirates.

In the UAE, the following types of real estate have the greatest investment attractiveness:

    • Offices;

Year after year, the number of companies in the UAE is growing steadily, therefore, the demand for offices, warehouses and technical premises is also growing.

    • Hotels;

The United Arab Emirates is one of the most desirable and popular tourist destinations. Thanks to the excellent conditions for an unforgettable vacation, millions of tourists visit the UAE during the year to enjoy the incredible architecture and warm waters of the Persian Gulf. The Emirates are popular not only among tourists, but also among businessmen who need housing while visiting the UAE. For these reasons, the hotel business in the UAE is one of the most profitable.

    • Shopping malls;

It is important for many tourists not only to see local attractions and beauty, but also visit shopping centers to purchase branded clothing of world-famous brands, electrical equipment, etc. at a very good price. Also, entertainment centers are offered in shopping centers and increase the flow of visitors.

The nuances of acquiring commercial real estate through offshore in the UAE.

If you are buying commercial real estate through an offshore company, you bypass the Sharia law, based on which the UAE legislative base is built. If a person who owns a share of the company's capital dies, then the assets belonging to him are inherited in accordance with the laws of the country where the deceased had a citizenship.

It is also worth considering the following nuance - in order to buy real estate on the offshore in Dubai, it is necessary to register the company in the Jebel Ali FEZ. If you register an offshore in another Free Economic Zone, then buying a property in Dubai will not be available to you.

Let's move on to the documentation.

A person from the side of an offshore company need to provide:

   • company charter;

   • identity document;

   • certificate of registration of the company and a written decision of the board of directors for the acquisition of real estate.

The seller, in turn, needs to provide documents with the registered:

   • cost;

   • location and other data of the facility.

To carry out any operations related to real estate, you need to have a contract confirming the acquisition, and a certificate of ownership of real estate.