It was not long ago when investors across the globe were lured in to Dubai, tempted with life time residence visas for investing in the property market. After sucking billions of dollars worth of investments in unfinished, overrated projects, it was that there is no such thing as a free-lunch, that is, life time residence visa.
Obviously, investors were panicked, especially those who have moved to Dubai with their families, kids going to schools etc., and were trying to settle down. They were told that they have to renew their visas after every six months, going out and coming back to UAE.
Now, it is reported that the government of Dubai is studying the enforcement of a new residence visa system for property owners. Although the new legalities are unclear yet, it is said that property owners would be required to setup companies first and then register properties under them.
The costs associated with setting up a company to register the property under it could reach up to Dh40,000 a year.
If the property owner decided to sell their properties, they have to cancel the trade licence of the company and then cancel their residence too.
This new law may help Dubai government to generate more funds, but it certainly is not investor friendly and will discourage people from investing in the property sector.