Investing in real estate in the UAE is traditionally regarded as one of the most reliable and transparent ways to preserve and grow capital. The acquisition of real estate in Abu Dhabi is permitted in the name of an individual or a legal entity, provided the applicable regulatory requirements are met.
One of the structures that can be used in practice to hold real estate in Abu Dhabi is an international business company registered with the Ras Al Khaimah International Corporate Centre (RAK ICC). Below is an overview of the key features of such a company, as well as the factors that make it a potentially convenient instrument for owning real estate in the capital of the UAE.
Key features of a RAK ICC company (Ras Al Khaimah)
A RAK ICC company is an international business company registered in the Emirate of Ras Al Khaimah in accordance with UAE legislation. One of its practical advantages is that the company is incorporated within the UAE jurisdiction, which, as a rule, allows avoiding complex and costly consular legalisation of corporate documents when dealing with local authorities and banks.
RAK ICC companies are well known to UAE banks and registration authorities, which significantly simplifies interaction with local institutions, including the opening of bank accounts and registration of property ownership, subject to compliance with the current requirements of the relevant emirate and registration authority.
From a tax perspective, RAK ICC companies are not subject to UAE corporate tax unless they have taxable activity in the UAE. At the same time, it should be noted that ownership of real estate and rental income may, in certain cases, fall under other regulatory regimes (for example, VAT or municipal fees), depending on how the property is used.
With regard to financial reporting, RAK ICC companies are not required to submit audited financial statements to the UAE government authorities, unless such reporting is required by banks or counterparties.
Advantages of using a RAK ICC company to own real estate in Abu Dhabi
- Ownership structure. An RAK ICC company may have one or more shareholders, which allows flexible allocation of ownership interests in the real estate asset among investors.
- Confidentiality. When registering ownership rights to real estate, information about the company’s shareholders is generally not disclosed in the property's title documents, providing an additional level of confidentiality.
- Asset management. Holding real estate through a company simplifies asset management. Decisions regarding the disposal of the property are taken at the level of the corporate bodies. Property management may be delegated to a third party under a limited Power of Attorney, duly executed in accordance with applicable requirements.
- Estate planning. The use of a corporate structure allows for a more flexible approach to inheritance planning, as shares in the company – rather than the real estate itself – form part of the estate, which often simplifies legal procedures.
Possibility of acquiring real estate in Abu Dhabi in the name of an RAK ICC company
In accordance with the current real estate registration rules in Abu Dhabi, companies registered in the UAE, including RAK ICC companies, may acquire and own real estate in specifically designated zones approved for foreign ownership, subject to compliance with the requirements of the Abu Dhabi Department of Municipalities and Transport (DMT).
It should be noted that the list of such zones, as well as the requirements applicable to corporate structures, may change. Therefore, the possibility of registering real estate in the name of an offshore or international company must always be verified in advance on a case-by-case basis.
How to register a RAK ICC company and acquire real estate in its name
Before initiating the company registration and property acquisition process, it is recommended to obtain professional advice. We assist clients at all stages – from company incorporation to property registration.
In general terms, the procedure includes:
- collection of a basic set of documents (passport copies, confirmation of ownership structure, selection of the company name);
- registration of the RAK ICC company (usually takes 3 to 5 business days);
- preparation of corporate documents for using the company as the property owner;
- support of the property acquisition transaction and registration of ownership rights.
After completion of the registration process, the company may be used as the owner of real estate in Abu Dhabi, subject to compliance with the applicable regulatory requirements.
