Residence permit for investment in the UAE with a lack of funds

45-year-old Vladislav heads a construction company in the city of Krasnodar. By occupation and personal experience, I am well acquainted with the real estate market in Russia, but for a long time I thought about buying a home abroad. The priority was countries with developed tourism, to earn rental income, and it was also easier to obtain a residence permit for investment.

“I have been successfully investing in real estate in Russia for several years. There are several objects that I rent and it brings income. Started thinking about, to purchase real estate and citizenship in the United Arab Emirates. But if I understand the construction of houses and can quickly make a choice, that time for that, to delve into the intricacies of preparing documents. Somehow I mentioned this in a conversation with a business partner and he advised me to contact And Now Pleasure. I asked about his situation, got acquainted with the site and decided to use the recommendation ".

According to Vladislav, the whole family has long appreciated the benefits of recreation and the quality of life in the UAE. He knows that housing there is in demand., and real estate prices are rising rapidly.

Become an investor and get a resident visa in the UAE (analogue of residence permit), this means:

• free to enter the country,
• be able to get an education and work in the UAE,
• rent out property,
• pay no income tax (for individuals),
• open accounts in local banks with a minimum of documents.

The UAE is a country with a stable economy, high standard of living and developed tourism, so it's safe to invest in it. Rental yield is 5–8% per year, there are overseas property management companies.

Investor pre-screening

"I immediately liked, before starting work, the company checks the investor for “trustworthiness”.

Mandatory stage when applying for residency by investment in the UAE, this is a due diligence check of the investor and his family. Often our clients prefer to know in advance, will they pass it, is it worth spending time on the design of an investment package?.

Vladislav provided And Now Pleasure lawyers with personal data, and our representative conducted a confidential preliminary check. As a result of this review, we are confident that 99%, that the residence permit will be approved.

Property selection

“Together with the lawyer of the company, we started issuing a resident visa. But when I had already chosen an apartment in a promising location, It revealed, that it costs less 200 000 dollars. I really did not want to change the object and I decided to purchase 2 apartments in this building. Such accommodation is not only rented by tourists, but also businessmen, and specialists, working in the country under a contract".

To choose a property in the UAE, it is not necessary to come to the country. There is a verified base of objects according to which Vladislav chose housing remotely. It happened, that apartments on the territory of the international golf complex, In Dubai, cost less, than stipulated by the conditions under which the UAE provides a residence permit.

The value of the property was 168 000 dollars. Vladislav estimated the growth rate of real estate prices in Dubai, clarified with the And Now Pleasure lawyers the terms of mortgage lending in the UAE bank and decided to purchase two apartments for a total amount 338 000 dollars.

In September 2022 the cost of mortgages for residents in UAE banks was 4-6% per annum.

From his own funds, Vladislav paid 230 000 dollars, and on 108 000 dollars issued a mortgage for a period 10 years at the rate 4,5% per annum.

Total spent on the purchase of apartments in Dubai 354 494 US dollars:

• 338 000 dollars - purchase of apartments;
• 13 520 dollars - property transfer tax, 4%;
• 294 dollars - administration fee for both apartments;
• 2180 dollars - registration fee for both apartments;
• 500 dollars — title deed fee.

The average cost of renting such housing is approximately 15 500 $ in year. Vladislav will return the amount of the mortgage along with interest through 2,5-3 of the year, and the costs will pay off in about 5 years.

After coming out of the pandemic, analysts note the growth of emigration and the active recovery of the UAE economy. This leads to an increase in rental prices., which means that you can recoup your expenses even faster..

Preparation of documents for obtaining a visa to the UAE

“And Now Pleasure lawyers gave me a list of documents that need to be collected to obtain a residence permit. I prepared them and handed over to the company. Specialists took care of further translation and certification by a notary. All that was left was to fly to Dubai and get a mortgage.”

Regardless of how long the investor plans to apply for a resident visa, the bank has some stringent requirements:

• credit is granted for an amount not exceeding 50% from the cost of housing;
• The investor must deposit an amount not less than that, what was included in the program of a resident visa.

Registration of a mortgage in a bank in the UAE

1. Appeal — Vladislav applied for a mortgage,
2. Checking – the bank conducted Due Diligence of the investor and confirmed the amount and terms of the mortgage loan.
3. Confirmation – the investor received a NOC Letter No Objection Certificate in Arabic. In the certificate, the bank confirmed the conditions under which it provided the mortgage: an initial fee 230 000 $ and 108 000 $ loan amount under 4,5% per annum.

Registration of documents for real estate

After that, how the seller confirmed the payment, Vladislav received certificates, to be attached to the package of documents:

• Hand Over Certificate - an act of acceptance and transfer of a property,
• Completion Certificate - certificate of completion of the construction of the facility.

Together with these, Lawyers And Now Pleasure, attached documents from the bank and ownership:

• mortgage application;
• NOC Letter - certificate of no objection;
• Title Deed - evidence of ownership of real estate.

Medical examination and biometrics

“After officially becoming the owner of the property, passed a medical examination and passed biometrics in the company of And Now Pleasure representative”.

The visa policy of the UAE is as follows, that the investor must undergo a medical examination in a clinic in the country. It is necessary to do a fluorography and pass tests for the absence of dangerous diseases.

• Medical Fitness Certificate - we also attached the investor's health certificate to the package of documents.

Vladislav submitted his biometric data to the Department of Residence and Aliens Affairs.

Applying for and Obtaining a Resident Visa in the UAE

“The inspection by the department was carried out fairly quickly., for 6 days. I am especially pleased that there were no additional questions for me.. 31 May 2022 of the year, I got a resident visa".

Further, all documents were provided to the Dubai Land Department. And Now Pleasure lawyers have already done this, by proxy.

The review usually takes 5-7 days.. If department employees have additional requests, to their satisfaction is given up to 30 days. In our case, this was not required..

Here is the main list of documents required, to obtain a residence visa of an investor in the UAE for 3 of the year

1. copy of the international passport,
2. copy of birth certificate,
3. photo 3x4 cm,
4. mortgage application,
5. confirmation letter from UAE bank,
6. building completion certificate,
7. act of acceptance and transfer of the property,
8. proof of ownership of real estate,
9. certificate of no criminal record in the UAE,
10. health certificate,
11. copy of health insurance,
12. power of attorney for lawyers And Now Pleasure.

Registration of a UAE resident for investment took us a little more than two months

• 23.03.2022 Vladislav turned to And Now Pleasure.
• One day took a preliminary check of the investor.
• 4 day spent on choosing a property.
• 29.03.2022 signed an agreement for the provision of services for obtaining a resident visa.
• 6 Weeks collected a package of documents for a mortgage loan; issued a loan and documents for real estate.
• 4 days took a medical examination and the provision of biometric data. It took over 620 $.
• 6 days the department processed the visa application.
• 31.05.2022 Vladislav received a UAE resident visa for 3 of the year. Registration cost 1 043$.

The result of cooperation

"In the process of preparation and execution of papers, I realized how much And Now Pleasure lawyers made it easier for me to get a visa. I am satisfied with the work and plan further cooperation".

Vladislav shared, which is already in July 2022 of the year, the first tenants moved into the apartment, so real estate started to pay off. While he lives in Russia, but at any time can move to live in the UAE.

After obtaining a UAE residence visa from Vladislav, as an investor, there are advantages

• The right to visit the UAE at any time;
• The right to open accounts in any bank in the UAE on more favorable terms, than for foreigners;
• As a client of a UAE bank, he can shop abroad;
• Own housing in Dubai generates rental income, in addition to existing real estate in Russia.