As a foreigner buying a business in Dubai or elsewhere in the UAE:
- Own most businesses outright.
- Use your shares to get a residence visa.
- Take salary and dividends free of personal income tax.
- Pay 0% corporate tax on the first AED 375,000 of profit.
- Some activities still restrict foreign ownership.
- The Golden Visa depends on your capital in the company, not the price you paid.
- Buying a company means inheriting its past.
A company whose revenue has never gone above AED 3 million can elect to pay no corporate tax at all until the end of 2029.
You can own 100%
Since early 2021, foreigners can fully own mainland companies without an Emirati majority shareholder or a local agent, though activities with strategic impact still need approvals. Free zone companies have always allowed 100% foreign ownership.
Many businesses set up before 2021 still have a local shareholder or a nominee arrangement. That’s fixable, but fix it as part of the deal, not afterwards. See how nominee arrangements trap buyers.
| Route | What qualifies | What it means when you buy | Validity |
|---|---|---|---|
| Investor or partner visa | Shares in a licensed UAE company | Usually the first visa a buyer gets; tied to the licence staying active | 2 or 3 years, renewable |
| Golden Visa, investor | Licence + MOA showing your capital is at least AED 2M, or a tax letter showing the company pays at least AED 250,000 a year; capital must be yours, not a loan | Judged on your capital in the company, not the price you paid | 10 years |
| Golden Visa, entrepreneur | Owner or partner of a registered SME in an approved sector with at least AED 1M annual revenue, approved by the Ministry of Economy or a local authority | A buyer becomes an owner, but approval isn’t automatic | 5 years |
The investor visa is for a sole or majority owner, and the partner visa for one of several shareholders. There’s no published federal minimum; advisers commonly cite a share value of around AED 72,000 for mainland companies as a practical norm. Confirm it for your case.
01The price you pay isn’t your capital
For the investor Golden Visa, the official requirement is a licence and MOA showing your capital is at least AED 2 million. Say you pay AED 2.5 million for a company whose MOA shows AED 300,000 of share capital. On paper your capital is AED 300,000, so you don’t qualify through that route yet.
Ask a setup adviser whether a formal capital increase makes sense, or qualify another way.
02Borrowed money doesn’t count
The invested capital has to be fully yours, not a loan. A bank-financed purchase won’t qualify on the financed part.
Run ICP’s eligibility check. It shows which route fits your situation.
Two details that matter when you buy:
- The standard investor visa stays tied to an active trade licence. If the business closes, your visa basis goes with it.
- The Golden Visa is more flexible. Holders can stay outside the UAE for more than six months, don’t need a sponsor, and can sponsor their spouse and children.
Tax: what you keep
Small Business Relief: check the history, not just this year
A company can elect to be treated as having no taxable income, so it pays no corporate tax, for tax periods ending on or before 31 December 2029 (Ministry of Finance; extension to 2029). The conditions are stricter than most buyers assume:
- Revenue, not profit: revenue must be AED 3 million or less.
- Every period counts: the test applies to the current tax period and every previous one. Once a company goes over AED 3 million, it can never elect the relief again, even after a bad year.
- Not automatic: it’s elected on each year’s corporate tax return. The company still has to register and file.
- Free zones: a free zone company using the 0% qualifying free zone regime can’t also elect it.
When you buy a company, its history comes with it. Ask for every corporate tax return filed so far and check the revenue line before you count on the relief.
| Business | Revenue | Profit | Corporate tax |
|---|---|---|---|
| Café | AED 2.4M | AED 420,000 | AED 0 with Small Business Relief (if revenue has never passed AED 3M); AED 4,050 without (9% × 45,000) |
| Trading company | AED 6M | AED 900,000 | AED 47,250 (9% × 525,000) |
Why buy instead of starting from scratch
- Revenue and customers from day one.
- Staff already employed and on visas.
- A licence, premises and fit-out in place.
- A trading history. That helps with banks, which run strict checks before opening corporate accounts. Expect the bank to re-verify you as the new owner.
- A possible route to the entrepreneur Golden Visa. A business already above AED 1 million in revenue may support an application from you as its owner, subject to approval. A new company has no revenue to show.
The trade-off is that you inherit everything. Read our buyer due diligence guide and how staff gratuity transfers in a sale before you sign.
How to buy from abroad, step by step
Common questions
Can a foreigner own 100% of a business in Dubai?
Yes. Most mainland activities have allowed full foreign ownership since 2021, and free zone companies always have. Activities with strategic impact still need approval.
Does buying a business give me a UAE residence visa?
Owning shares in a licensed company can support an investor or partner visa. A Golden Visa needs more: AED 2 million of your own capital in the company, or an SME with at least AED 1 million in revenue and official approval.
Does paying AED 2 million for a business get me a Golden Visa?
Not by itself. The investor route looks at your capital as shown in the company’s MOA, and that capital must not be borrowed. The purchase price doesn’t count unless it’s reflected there.
Do I pay tax on dividends from my UAE company?
Not in the UAE. There’s no personal income tax and no withholding tax on dividends, but your home country may tax them.
Is Small Business Relief automatic?
No. It’s elected on each corporate tax return, and the company’s revenue must have stayed at or below AED 3 million in every tax period so far.
- 01u.ae: Golden visa
- 02ICP: Golden visa eligibility check
- 03Ministry of Economy: Golden visa conditions for entrepreneurs
- 04u.ae: Full foreign ownership of commercial companies
- 05Ministry of Finance: Small Business Relief decision
- 06The National: Small Business Relief extended to 2029
- 07Qaspro Global: Small Business Relief eligibility guide
- 08Clyde & Co: UAE corporate tax overview
- 09Business Dubai: UAE investor visa requirements
- 10Pinsent Masons (Out-Law), guide to UAE corporate acquisitions
This article is general information, not legal, tax or immigration advice. Visa and tax rules change; confirm your case with ICP, GDRFA, the Federal Tax Authority or a qualified adviser.
