One way to check the expiry date of your UAE visa is through the official website of the Federal Authority for Identity, Citizenship,

One way to check the expiry date of your UAE visa is through the official website of the Federal Authority for Identity, Citizenship, Customs and Port Security:

1. Go to the official ICA website.

The home page automatically opens in Arabic, but you can switch to English by clicking on the corresponding button.

2. Click on the Passport Information button.

Alternatively, one can proceed with a file number that can be found on a UAE residence visa in the upper right corner. Still, using passport details is quicker and easier and we would recommend going in this direction, as it described below.

3. Choose the type of search.

You should click on the Visa button in case you are in the country on:

If you have a retirement visa, residence permit or work visa in the Emirates, click on the Residency button.

4. Fill in the number and expiry date of your passport.

Note that the expiry date is filled in the dd/mm/yyyy format.

5. Enter your nationality.

In the case of multiple citizenship, state the nationality that your UAE visa is attached to. You just go down the list provided in the field in order to find your country. Then, you can either fill in the number that you will see next to it or simply click on the name of your country and the interface will complete the entry for you.

6. Confirm that you are not a robot and click on the Enter button.

Once you complete the procedure, you will be shown:

Check a UAE Residence Visa Status Using the GDRFA Portal

If you have a visitor’s visa or residence permit in Dubai, you can also check its validity status on the official portal of the General Directorate of Residency and Foreigners Affairs Dubai (GDRFA). Keep in mind, though, that if you have a visa to any other Emirate, you will need to use the procedure described in the previous section.

The reason for this is, the GDRFA portal is not only available for other Emirates in the UAE. In fact, they do not even have access to each other’s databases. The actual procedure is virtually identical to the previous one, and it is just as quick and easy too, but we will go through it in detail here for your convenience.

1. Go to the GDRFA official website.

2. Choose the type of inquiry.

You will be given a choice of entry permit and residence, and you need to click on the latter.

3. Pick the type of service.

Again, you will be shown a list of available services, and you need to click on the Residence Validity button.

4. Fill in your personal data, such as:

5. Fill in your immigration data, such as:

6. Confirm that you are not a robot and click on the Submit button.

Once you complete the procedure, the following data will be displayed on your screen:

The GDRFA also provides mobile applications for this purpose. This may be a convenient way to check your UAE visa status on the go, but then you will need to install the app in advance. Luckily, it is available for both Android and iOS devices. For accessing the application, users of Android devices need to download the APK extension file.

Once the GDRFA app is running, you need to make the following steps:

1. Register your profile in the application by typing in the required personal data.

2. Tap on the Services button.

3. Proceed to the Entry Permit / Residence Status Inquiry.

4. Tap on the Residence Inquiry button.

5. Fill in your personal and immigration data in the same manner as you would on the GDRFA website (see the instruction above).

6. Tap on the Inquiry button.

The app will show you the same information that you would see on the GDRFA portal (see the instruction above).

If you do not see a green tick at the bottom of the page after you submit the inquiry, it means that you have entered some data incorrectly and need to go through the fields once more to correct the mistake.

Grace Period and Fines

If you have checked the visa expiry date in one of the suggested ways and realised that the remaining period puts you on a tight schedule for visa renewal or departure, the problem might be fixed easier than it seems. There is a grace period in the UAE regulations allowing foreigners to stay in the country for another 30 calendar days with no penalties.

Keep in mind that the extra days are given for helping foreigners tackle unforeseen issues, pay the bills and prepare for the departure. If you have, in fact, an opportunity to depart before the expiry date, it is inadvisable to misuse the grace period just for leisure purposes.

It might happen that a foreigner has overstayed the grace period too. In such a case, the foreigner will be fined for visa regime violation. More specifically, the migration law determines a penalty for the visa violations that is depending on the length of an overstay period:

Needless to say, this is a considerable amount, which could explain why the Emirates immigration authorities do not enforce the visa regime by departations. The decision to overstay visa period or not, based on your personal circumstances, will rest with you.

Tranio Editorial All articles by this author

The article provides the guidelines on setting up a legal entity in the UAE and applying for a residence permit as a company founder. Further, it discusses the

The article provides the guidelines on setting up a legal entity in the UAE and applying for a residence permit as a company founder. Further, it discusses the advantages and downsides of main entity types for doing business in Dubai, in the UAE and worldwide in 2022.

Obtaining an Emirates ID card by starting up a business is one of the fastest ways to become a UAE’s resident. Entity incorporation takes from 2 to 8 weeks depending on company type. A residence permit by entity registration is issued for three years and may be repeatedly extended while the entity is validly operating.

Pros and cons of doing business in the UAE

Pros:

Cons:

Choosing type of legal entity

There are two main choices for starting up a legal entity in the UAE as a foreigner: mainland company or free zone entity.

Mainland company in the UAE

A mainland company is good for doing business in the UAE’s local market. It is a good fit for  restaurants, shops, beauty salons, and private hospitals.

Still, a local agent with UAE citizenship must represent the interests of a foreign investor. The agent has no share in the company and acts as a formal warrantor who interacts with the local authorities on behalf of the company.

Advantages:

Disadvantages:

Free zone entity in the UAE

A free zone entity is a boon for doing business online or outside of the UAE: consulting services, IT and media, trade, online education, etc. There are over 50 free zones in the UAE to choose from when opening this type of company.

Advantages:

Disadvantages:

Choosing free zone for entity incorporation

There are 50 Free Economic Zones in the UAE. Each free zone has its own public governance structure: a registrar, migration authorities, police, customs, healthcare facilities.

Two major free zones have their own courts. The legal system of Dubai International Financial Centre (DIFC) is based on English law: the DIFC court provides litigation and wills services at common law rather than Sharia law.

The Free Economic Zones have no single regulator neigher at the single Emirate’s nor at the UAE national level. Here is Tranio’s guidance on how to navigate between multiple free zones and choose the best legal residence for your entity.

What you need to know when choosing a free zone in the UAE?

1. Entity’s activity

Identify the free zones dedicated to your entity's business activity. Generally, the Free Economic Zones focus on certain business lines, such as trade, media, IT, education, manufacturing, logistics, startups, finance, design, healthcare. For instance:

2. Types of licences

Study the types of licences available for registration of your entity. A licence specifies the type of an entity’s business activity. Choose the type that covers your entity’s business activity to the maximum extent possible. Otherwise, if your entity is found to be conducting other types of activities, the regulator would impose a penalty or even block your entity’s bank account.

3. Office

One of the main documents required for entity registration and bank account opening is a lease agreement for a real – brick-and-mortar – office space or a shared co-working place. A bank representative can visit your office or request to provide a picture of the office.

An entity that engages in goods imports or export would need access to a seaport or airport. Moreover, such ad-hoc commercial facilities, as warehouses and retail shops, are not available in all the free zones. Dubai Airport Freezone (DAFZA) is one of the leading zones for importing and exporting companies. The first free zone in the UAE was established in the port Jebel Ali (JAFZA) in 1985 and is linked to 140 ports globally.

4. Residence visa

A residence visa is granted to the owner or entity's employee in the free zones. Some free zones impose additional visa requirements, e.g. procurement of health insurance. There are zones that require a deposit payment amounting to several salaries or return flight fares.

5. Budget

Estimate your costs: registration and licence fees and charges, lease payments for the first two years of your entity’s operations in various free zones. Consider visa charges, including charges of residence visas for shareholders and all the employees.

Further relocation costs might exceed the original incorporation budget by several times undermining the attempt to save up. Do not be unreasonably frugal while choosing a free zone if you really want to do business.

6. Authorised capital

Contribution of a particular amount to the authorised capital of your entity is one of the most common requirements for entity incorporation in the UAE. The minimum amount of the authorised capital ranges by free zone. Some zones do not impose minimum capital requirements.

7. Annual audit report

Free Economic Zones do not generally require the submission of financial statements or audit reports. However, there are some free zones where reporting is requested. For instance, submitting an audit report at the end of a financial year is compulsory in Dubai Multi Commodities Centre (DMCC). Only one of the UAE auditors approved by the DMCC may submit the report. Failure to submit an audit report timely is penalised.

UAE residence visa

There is no concept of a residence permit in the UAE legislation. The UAE authorities grant the foreigners settling down in the country a long-term residence visa similar, in fact, to a residence permit.

Foreigners obtain a residence visa for three years upon registration of a mainland company or a free zone entity. Such residence permit may be extended repeatedly while the entity is validly operating or as long as the visa holder is employed. Permanent stay in the UAE is not required but a residence visa might be cancelled if the holder stays away from the country for six consequent months.

The investor may act as a sponsor for his spouse and children that would then also get their residence visas. The investor who employs his/her parents or other relatives in the entity or obtains a golden visa may relocate them too.

Ani Muradyan All articles by this author

The UAE offers a programme of getting UAE residency (a long-term visa)

The UAE offers a programme of getting UAE residency (a long-term visa) by investment. The UAE programme has its specifics, allows for investment options, and imposes certain criteria on eligible investors in 2022.

UAE residency programme

The United Arab Emirates issues residency to investors contributing at least 205,000 US dollars into real estate. The investor and family obtain the resident’s status and may stay in the country permanently. UAE law has no such concepts as residence permit or permanent residency, so residents get a residence visa instead that is basically similar to a residence permit and is valid for a term from six months up to ten years.

A UAE residence visa may be extended an unlimited number of times: in fact, a foreigner may be a UAE resident all their life. However, A UAE residence visa may be extended only if the conditions of issuing it are still met, meaning that the real estate entitling to it has not been sold.

In April 2022, the UAE Cabinet simplified the long-term visa rules and reduced the real estate investment threshold for golden visas.

Advantages of the programme

Investment thresholds

Documents for residence visa

Eligibility requirements for investor

Ani Muradyan All articles by this author

The key feature of instalment plans from Turkish developers

The key feature of instalment plans from Turkish developers is that they can be issued even for completed projects. An instalment period of up to three years and a down payment of 25–50% are typical conditions for the Turkish market. You can get a discount of up to 20% for a purchase without instalments. In this article, we explain why a foreigner cannot get a mortgage in Turkey, why it is profitable to take an instalment plan and how to protect an investment by buying an apartment in a new building on an instalment plan.

Underlying reasons for instalments

The issuance of mortgages in Turkey to foreigners has been suspended. Formally, this is due to the new rules that came into force in January 2022 due to amendments to Article 13 of the Turkish Capital Circular. Now, in real estate deals, foreign buyers must exchange foreign currency for Turkish liras and receive a special exchange certificate — Döviz Alım Belgesi. A foreigner can register ownership of the property only with such a certificate (a complete guide from the Cadastral Administration). The amount of the convertible currency must correspond to the sale price indicated in the title deed (TAPU). When receiving a housing loan, part of the real estate cost is paid by the bank, and the new owner pays only the down payment.

Interest-free instalments from developers and a discount for a lump sum payment

Most Turkish developers provide instalment plans for up to three years. In some projects, instalments can be issued even if the facility has already been built and put into operation. The down payment can range from 25% to 50%. The residual amount is allocated to mandatory payments. Payments’ frequency depends on the agreement with the developer. Of course, there is an option to pay off early without any fees. Instalment is interest-free; however developers provide a tangible discount of 10–20%, if they receive the entire amount at once. 

The ownership of real estate is registered only after full payment by instalments. In some projects, you can use your property immediately after paying the down payment and after the construction’s completion.

Investment benefits of instalments in Turkey

Typically, the prices for new buildings in Turkey are denominated in euro or US dollars. The total cost and payment plan in instalment agreements are indicated in foreign currency: this is how developers protect themselves from inflation and the depreciation of the Turkish lira. From April 2021 to April 2022, the Turkish lira depreciated by 96% against the US dollar.

The real estate market in Turkey is now experiencing a real boom: according to the Reidin analytical agency, in March 2022, the average property prices in the country increased by 102% in Turkish liras. The March report of the Central Bank of Turkey shows an annual growth of 110% in the housing price index. In popular municipalities of Istanbul and Antalya, property prices increased by more than 170% in Turkish liras (Endeksa) or about 40% in US dollar terms.

The annual growth of average house prices in Turkey as of April 2022:

Keep in mind that these are average figures; a closer look at new buildings in the central regions shows an even more significant increase in prices. According to Turkish industry experts, developers and real estate agents, the prerequisites for further appreciation of real estate are still there. Read a detailed analysis of property prices in Turkey.

Therefore, from an investment point of view, during this rapid market rise in large municipalities such as Istanbul and Antalya, it is quite profitable to take an instalment plan: the loss of developer’s discount of 10–20% is covered by an increase in property value in the coming years. Especially when you consider that in Turkey the buyer does not incur significant additional costs when buying a property, except for the transfer tax of 2–4% and VAT, which can be returned after the transaction.

To obtain citizenship by investment, you will have to pay off instalments

In Turkey, you can obtain citizenship under the Turkish Golden Passport programme for investments in real estate from 400,000 US dollars. However, you can apply for citizenship only after registering property’s ownership. In most projects, this means paying off the instalment plan. Therefore, those investors who are interested in Turkish citizenship often do not apply for instalments or apply for a short period, if necessary.

The rules of investment citizenship in Turkey are changing: until 2018, investment citizenship cost more than 1,000,000 US dollars, then the threshold was lowered to 250,000 US dollars, and in May 2022 it was increased again to the current 400,000 US dollars for deals concluded after 13 June 2022. How long these new rules will last is unknown, so it’s safer to pay for the purchase right away.

There are rare exceptions: some large developers agree to issue a certificate of ownership to the buyer before the instalment is paid off in full. In this case, the property will be encumbered, but with an instalment agreement and a certificate of ownership, you can apply for citizenship.

Risks associated with instalment plans and the purchase of objects under construction

The Turkish government is interested in selling property to foreign investors. Foreign buyers of Turkish real estate are given a residence permit and citizenship. Also, in order to attract foreign investors, a subsidy programme was launched in April 2022 for companies that sell Turkish real estate to foreigners and develop in foreign markets. These subsidies cover up to 50% of the expenses of such companies.

Nevertheless, in order to avoid courts in a foreign state, one should minimise possible risks in advance and do everything by the book.

Risk no. 1. Fraudsters, bankruptcies and project freezes

There is an outdated opinion that in Turkey any unemployed person can engage in the sale of real estate, therefore, the risk of encountering fraudsters is quite high. True, a few years ago, there were such agents in Turkey. However, since 2018 the government has been taking active measures to combat illegal real estate trade. And from 1 September 2020, all real estate transactions must be carried out in the presence of a licensed real estate agent, whose activities and rates are regulated by the Cadastral Office (Tapu Kadastro Genel Müdürlüğü).

It is now mandatory for construction companies to work with authorised offices or organise their own sales offices in accordance with the law. Therefore, the problem of fly-by-night companies and unscrupulous realtors in Turkey has eventually been solved. Make sure that your agent or developer has a real estate trade permit (Taşınmaz Ticareti Yetki Belgesi).

Sometimes new construction companies attract buyers with low prices and then fail to cope with the project and go bankrupt due to a lack of sufficient experience. When choosing property in a project under construction, it is important to pay attention to the developer's experience and look at his portfolio, containing examples of completed projects. Experienced developers, who have been on the market for a long time, value their reputation and their business.

The very fact of payment in instalments is a protection against the risk of developer’s bankruptcy and freezing of projects at the construction stage, since the investor invests an amount proportional to the current project cost. If the developer goes bankrupt, the land with the unfinished project will be sold at the market price, and the proceeds will be returned to investors. Instalment payments in the contract should depend on the stages of construction.

Risk no. 2. The construction may be delayed

Most projects in Turkey are built quickly — within 1–2 years. According to the Turkish Statistical Institute data for March 2022, construction prices have risen by 103% in a year and by 9.6% in a month. Therefore, there is a high risk that contractors will exceed the estimate and the construction itself will be delayed due to the lack of funding.

The construction industry plays a key role in the Turkish economy, so the government supports developers: subsidises loans and reduces the tax burden during periods of crisis.

It is important to make sure that the contract specifies the completion date of the project as well as clauses on compensation in case of delays.

Risk no. 3. Changes in the project or cost after the contract has been concluded

Generally, sales in the project begin after obtaining a building permit and plan approval. Make sure the developer has the following documents:

Depending on the project’s stage, there may be different documents: at the construction stage, it is important to check the land rights and building permit, and for finished housing — the TAPU status. The Kat İrtifakı mark in TAPU means pre-registration according to the approved project plan and that the developer has yet to complete the second stage of registration. The Kat Mülkiyeti mark means that the apartment is finally registered in the housing stock. Depending on the construction’s type, other documents may be required, so it is very important that the deal is accompanied by a lawyer specialising in Turkish real estate.

The contract must exclude project changes without the buyer’s consent, indicate the final price and specify the procedure for notifications and confirmations of receiving instalment payments (dekont, makbuz).

In order to protect your interests, a lawyer should be involved in the deal, who will analyse the contract with the developer and warn of possible risks. All major real estate agencies have such lawyers. We cooperate with trusted Turkish lawyers specialising in real estate transactions.

Elena Milishenkova Chief Commercial Officer at Tranio

Risk no. 4. Low-quality construction

In 2021, the Turkish Ministry of Environment and Urbanism started the implementation of the Building Identification System (Bina Kimlik Sistemi). Each building will have a certificate, by which anyone can get information about it: from the materials used in its construction, the technical plan and the results of regular inspections to the list of residents.

By the end of 2022, it is planned to include 100,000 buildings in this system and release a mobile app for wide use. Developers in large cities, especially in Istanbul, are already building projects in compliance with all building regulations, pending the certification of buildings in the new system and the transparency that will follow.

Nowadays, many new buildings in Turkey appear on the market already finished or close to completion. This is not Germany, where everything is sold at the early stages of construction or even immediately after obtaining a building permit.

You can visit Turkey to see and touch everything with your own eyes and hands. Or at least look at the property during a video call with the manage

Elena Milishenkova Chief Commercial Officer

Alesia Razinkevich All articles by this author

I should warn you, my deal took place during a time of rapid change, not only in foreign policy and economics, but also in my personal life.

I should warn you, my deal took place during a time of rapid change, not only in foreign policy and economics, but also in my personal life. Over the past 6 months, I have managed to do the following: decide against buying an apartment in Turkey; change my mind and buy it under the influence of external circumstances; change my plans for this apartment; get a job in another country (not Turkey). Despite the changes, I tried to act in a balanced way at every step, so the investment, in my opinion, was an overall success. But first things first.

Episode 1, in which I did not dare to buy an apartment in Turkey in December 2021

I have been a software developer for 10 years and have been saving money for several years. I placed my savings on foreign currency deposits or invested through the stock market in shares of companies.

In December, against the backdrop of foreign policy and global economic tensions, stock quotes of many companies crept down and uncertainty began to spread in the stock market. Additionally, the dollar and euro’s rates of inflation increased. I began to consider more conservative assets, such as real estate. I already had an apartment in Moscow, so I did not consider it appropriate to invest in another one: the stock market taught me to diversify risks, including country risks.

I did not want to keep all my capital in one country and in one currency. However, I did not have an understanding of foreign real estate markets. And getting a grasp on real estate taxes in a foreign country seemed like a fulltime job in its own right. Turkey got my attention. I learned that on the one hand, real estate there was on the rise: demand was increasing and prices were rising. On the other hand, the Turkish lira was rapidly falling against the US dollar, and theoretically it was possible to gain on this exchange rate instability and buy real estate profitably.

I began my independent search for available properties on the Mediterranean coast near the Mahmutlar region beside Alanya. This place was recommended to me by my friends. It turned out that in coastal areas, prices for new real estate were denominated in euro, less often in US dollars, but not in Turkish liras, so I would not be able to profit on the exchange rate difference. And so I put the idea of Turkish real estate on the back burner, believing that the risks in the stock market were not high enough to start a reshuffle.

Episode 2, in which I was protecting capital from risks in March 2022

At the end of February, it became clear that I had a few days at most to manage my capital according to the old market rules as no one had any idea what would happen next. New sanctions and restrictions were being introduced in bundles each day and the rules on foreign exchange transactions were changing. It was because of this uncertainty that the risks increased. It was necessary to act quickly, so I returned to my most thought of scenario — Turkish real estate. Especially since there were no other options besides Dubai and Turkey left. With a budget of about 85,000 US dollars, Dubai was out of the question, so the choice became obvious.

At first I thought about visiting Turkey and searching for suitable properties myself, but I quickly realised that it was dangerous to buy in an unfamiliar country and market. After all, I would have to transfer tens of thousands of dollars, without having time to make sure that I was doing everything right. It seemed safer to contact a Russian company with experience in foreign markets. I had no one to consult with, so I went searching online. I found a lot of companies I knew nothing about. In order to avoid mistakes, I began to look for mentions of these companies in industry articles of reputable business titles such as Kommersant and Vedomosti. Tranio was frequently mentioned, even in old articles from 2014–2016. The logic was simple: if these titles were interested in Tranio's opinion on what was happening on foreign real estate markets, then I could count on getting reliable recommendations as well. And I was right. Sales manager Maria arranged a meeting for me with two trusted Tranio partners in Alanya: a sales office of one of the developers and a real estate agency.

On 5 March I flew to Alanya and went to look at the properties suitable for my request with the developer’s representative Gulnara. We looked not only at the projects of this developer, but also their partners. Finally, I made my pick and chose a project with good prospects: a three-room apartment in a residential complex under construction in the village of Demirtas, between Alanya and Gazipasa Airport. I learned that the village was being actively built up. Gulnara said that 40 large plots of land had been allocated in the village for multi-storey residential development.

In 5 years this place will become lively and there is a great potential for price growth. At the moment, it was quiet there, which was an advantage for me: I was going to live in my apartment from time to time and work remotely. I also planned to invite friends and relatives to live there for a small fee to recoup the maintenance costs, so that the apartment would not stay empty for long periods of time. The residential complex was located two kilometres from the sea and greatly resembled a hotel in terms of available services. It had a fenced area, outdoor and indoor swimming pools, a sauna and other delights for living and relaxing. The only difference was the lack of a breakfast service. 3 of the 5 buildings in the complex were occupied 3 years ago, in the other two, finishing was being completed. I made sure that there were actual people living in the residential complex, and that the entire infrastructure worked fine.

The management company of the complex assured me that the maintenance of my apartment would cost no more than 2,000 Turkish liras per month (approx. 800–1,000 euro per year), including utility bills and aidat (a monthly payment to the management company for the maintenance of common facilities and services).

Later, I learned that there were properties on the coast, intended exclusively for short-term rentals through a management company with an offer to receive a yield of up to 7% per annum in euro. Although interesting from an investment point of view, I would not buy such an object: firstly, I wanted to come to my apartment myself and invite friends and relatives, and secondly, there was no time to gain insight on guarantees of profitability.

The deal was made quickly: only 2 weeks passed from the moment of the first application to the payment of the deposit.

Maria Alkhazova Tranio’s manager

Episode 3, in which not all banks were agreeing to transfer a payment in March

During my first visit in early March, I paid for the booking and signed the sales contract. I was issued an invoice and returned to Moscow to prepare money to pay the entire cost of the apartment — 74,500 euro. At that time, no one had an unambiguous understanding of how to pay, including banks, although there were no formal restrictions on transfers to Turkey in order to pay for real estate. Until the very end, I was afraid that this opportunity would be closed. We had to act blindly. Maria helped a lot: she shared the experience of her other clients who bought property in Turkey at the same time as me. That’s how I met Sergey. Together we looked for ways to pay. Sergey issued a power of attorney for a lawyer through the consulate and was not afraid to close the deal completely remotely, perhaps because he is a tax lawyer by profession.

Although there were no legal restrictions on bank transfers to pay for property in Turkey, in practice, each transaction had to be acted upon empirically: some banks refused to make transfers for their own internal reasons, others were simply disconnected from SWIFT.

Therefore, the payment was one of the most difficult steps for the clients. We tried to consolidate the experience of our clients to determine the best options.

Maria Alkhazova Tranio’s manager

Some banks had maximum transfer limits, coincidentally the same ones where I had brokerage accounts. Other banks, mostly European ones, were wary of making transfers due to tight internal compliance as well as the new and still unsettled exchange control rules. I spent two weeks transferring money from bank to bank. Finally, at the end of March, Tinkoff Bank accepted the payment via SWIFT for processing, and 4 days later additionally requested a sales contract. 3 hours after I sent them the contract, the payment finally went through.

I transferred money in dollars, and the receiving party converted them first into liras, according to Turkish law about foreigners' transactions with Turkish real estate, and then into euro, since the cost of an apartment was denominated in euro. I lost about 500 euro on this conversion.

Episode 4, in which I became the owner and received a residence permit

For my next visit in mid-April, my agent and the developer's lawyers prepared a package of documents for registering the ownership of the apartment in the cadastral office. A few days later I received TAPU and became the full owner. While my apartment is being renovated and furnished, I have been living in the tourist area of Alanya for the second month, waiting for the 60-day visa-free stay to expire. With TAPU in hand, I applied for a residence permit in Turkey and after 3 weeks I received an ikamet card. This document is my identity card in Turkey for the entire duration of the residence permit. Now I can stay in Turkey without restrictions. The entire service associated with the choice, purchase, paperwork and even assistance in obtaining a residence permit was included in the cost of my purchase. I did not pay anything on top of that, except for the fee for the documents’ translation and notary services. Now the agency is helping me open accounts in resource-supplying organisations to pay utility bills.

According to Turkish law, real estate transactions must be carried out in the presence of a licensed real estate agent, whose activities and rates are regulated by the Cadastral Office.

The brokerage commission in Turkey — unlike most European countries — is paid by the seller, not the buyer.

Maria Alkhazova Tranio’s manager

If I chose to rent out my apartment, I would need a Turkish bank account. Not all banks opened accounts for Russians without a residence permit back then. From what I managed to find out, in April this was possible at Deniz Bank.

This required a Turkish tax number (issued online using the international passport number), a deposit of 10,000 Turkish liras, which cannot be spent within a month, a commission of 700–800 Turkish liras, and a copy of the registration page from the Russian internal passport. By the way, you can link your Internet banking to a Russian phone number. With a Turkish residence permit, you can open an account with any bank in Turkey.

In Alanya I use the MIR card of a Russian bank. In shops and gas stations with terminals of the popular banks, such as Ziraat, Turkye Bankasi and Isbank, you can pay with this card. But one cannot do without cash here as not all banks work with the MIR system. You can withdraw money from ATMs of these banks without any problems though. The Russian rouble exchange rate is now greatly strengthened in Turkey. In May, the Turkish lira cost about 3.7 Russian roubles; it was possible to withdraw at the rate of about 4. In comparison, in mid-March, ATMs issued the lira for 10–13 roubles. It all depends on the US dollar’s exchange rate. The Turkish lira sank during this time, while the Russian rouble, on the contrary, strengthened.

Episode 5, in which I reevaluate my purchase after purchasing it

The irony of my situation is that during this short period of time my plans have changed dramatically. I will soon move to a permanent place of work in Bulgaria. It turns out that I don't really need a Turkish residence permit anymore and I will not be able to visit my new apartment often. However, it is still nice to have a safety cushion of a Turkish residence permit, according to which you can live almost on an equal footing with citizens of the country and even open a business. If I had to choose a property with my new circumstances in mind, I would still choose Turkey. Except that I would look for properties for short-term rental with a guaranteed yield.

Nevertheless, I am satisfied with my investment: there is no such uncertainty anymore, and I have become calmer. In the foreign policy context, I consider Turkey a stable country due to its dependence on international tourism, which employs millions of people. It is beneficial for Turkey to keep its balance in foreign policy waters and maintain good relations with other countries. Turkey's favourable geographic location makes the country a link between Europe and Asia with extensive trade and international maritime and land logistics. I think it is unlikely that relations between Turkey and Russia will deteriorate.

At the same time, I understand that markets develop in cycles. Now real estate in Turkey is becoming more expensive, the demand is high, in particular among Russians. Gulnara said that she alone sold 6 apartments to Russians in Alanya and its surrounding area in one month, and there are many agents there.

I think that in 1.5–2 years the situation may change in the opposite direction: there will be either stagnation or a recession, and then I will have to wait another 10 years until the next rise so that I can sell profitably. I don’t know yet when I will sell, I will focus on the state of the market, there is nowhere to rush.

What I could do, I did: I chose a promising object in a promising area. Perhaps I will rent out this apartment on a long-term basis to local residents through the management company of the residential complex.

Alesia Razinkevich All articles by this author

This article provides an overview of the property market in Dubai for investment purposes. In particular, Tranio will explain

This article provides an overview of the property market in Dubai for investment purposes. In particular, Tranio will explain about the legal framework for foreign investment and the role of national regulatory arms, as well as discuss main investment schemes, the potential yields and tax rates in the Dubai real estate market.

Dubai is now rapidly recovering from the recent pandemic restrictions, and its real estate sector is more active than ever, commissioning on average between five and six thousand new objects per month. In addition, the government is doing its best to facilitate the process by relaxing the legislation and motivating foreigners to invest in off-plan projects.

The actual demand for new commercial and residential property is growing too, especially among foreign investors, and prices for luxury real estate are on the rise. In the following sections, we will briefly highlight the most significant reasons to invest in Dubai property and describe the best locations to do it in 2022.

Relevant Statistics

1. In the last twelve months, foreigners bought more than 20,000 private property objects, which is the highest since 2014.

2. Foreign direct investment (FDI) in the luxury real estate sector increased by 130% over the same period, breaking the UAE's all-time record.

3. According to reports from the major property development companies in Dubai, their profits are currently growing at the average rate of 250% per year.

4. Annual data on the capital inflow in Dubai shows that foreign nationals have invested most in high-end real estate of Business Bay and Jumeirah Islands.

Highly regulated industry

Dubai’s government has done a great deal improving the market transparency and the service quality for property investors in the recent couple of years.

For one, the Emirate keeps updated its digital real estate registry processing the transactions with off-plan and ready properties in Dubai and providing a smooth experience of market research to potential investors from all over the world.

For two, a remote deal in the Dubai real estate market is a comfortable visit to a one-stop-shop for online property search, booking and sales contracts, title deed registration, property management, utility bills or tax payments. The latter is rarely needed, as Dubai retains a zero-tax on income and capital gains, inheritance or gifts, as well as real estate and gold.

For three, the Emirate has considerably extended the areas of new-build properties available for freehold ownership by foreign nationals. In addition, the financial terms of such investments have been made very lucrative indeed. For example:

Regulatory arm – Real Estate Registration Agency (RERA)

In an attempt to stimulate foreign direct investments in the Emirate’s residential property market, the Dubai Land Resources Department has founded the Real Estate Regulatory Agency, commonly known as RERA, to provide the following legal and administrative services:

Real estate investment management and promotion center

While RERA deals primarily with legal and administrative matters, the Real Estate Investment Management and Promotion Unit of the DLD is focused on stimulating and facilitating actual investments, equally responsive to local and foreign investors. This department plays a significant and invaluable role in:

Convenient Mortgage Terms

They have also made it a lot easier and more profitable to take mortgage loans from local banks. As a result, the total capital gains from these loans jumped up by nearly 80% in 2021, breaking a six-year record so far. The most significant changes include the following:

1. The mortgage loan can constitute as much as 60% of the purchased property's total market value.

2. As a foreign resident, if you stay in the country permanently, the maximum amount of your mortgage loan will be increased even further to 80% of the purchased property's total market value.

3. By far the best gift from the state is that you can now apply for and receive a loan even before you sign a property transfer agreement. In other words, you can first get the money and then start searching the market, which makes the process a lot less complicated, and enhances your purchasing capacity too.

Immediate residency

Investing in Dubai property is also an easy way to obtain permanent residence in the UAE. All you need to do is purchase real estate for at least one million UAE dirhams, and you will get the so-called real estate owner visa.

Another condition is that, if you have taken a mortgage loan from a local bank, you must pay back at least 50% of it first. The terms for the actual duration of the residence permit thus obtained break down as follows:

In addition, the UAE Immigration Department provides special conditions for the elderly foreign residents. Basically, you will get a permanent residence permit, which is called a retirement visa, if you are:

Attractive rental yields

Dubai’s developers maintain the high quality of construction and design, especially in the case of upmarket private property. For example, the luxury space for each dollar invested is one of the largest in the world.

In addition, investments in the local property are also quite lucrative, compared to other large cities around the world. The local rental yields are quite high, reaching up to 10% in some cases, which is one of the best figures by international standards.

Rent-to-own scheme

Often called a rent-to-buy deal, rental purchase refers to a notarised agreement that the tenant will be paying the rent until he is ready to buy the property, which he can do at any point in time. Typically, the terms become much more lucrative for the tenant in such a case, often allowing him to save at least one-quarter of the future down payment.

Rent-to-own transactions are practised increasingly more often in Dubai these days. Such deals are actually quite beneficial for landowners and developers as well, since they allow the seller to attract potential buyers who otherwise would not have sufficient funds for an adequate down payment.

Favourable tax conditions

Rental yields are also totally exempt from both income and capital gains taxation in the UAE. The rental interest rates, on the other hand, are between 3% and 5%, which is pretty low by international standards.

The repayment terms are fairly flexible and may be extended to as long as 25 years under certain conditions. And as a cherry on top, there will be no stamp or property tax to pay.

Dubai's overall high standard of living and comparatively reasonable price list for real estate have made it the prime target for transnational property investment in 2022. Besides, the UAE government has made everything possible to make such foreign investments exceptionally convenient and profitable.

High rental yields, low tax rates, excellent choice of high-quality properties and accessible immigration procedures make the Emirate a highly anticipated destination. In the section below, we will briefly describe the six locations in Dubai that have been most favoured by foreign investors in 2022.

Best Areas for Investment in 2022

Business Bay

This skyscraper haven constitutes a downtown commercial district of Dubai. It consists of business and residential buildings, as well as numerous parks, entertainment centres and canals.

Dubai Creek Harbour

A natural seawater inlet, Creek Harbour is particularly favoured by foreign investors and tourists alike. It is located near a large wildlife sanctuary where you can watch thousands of migratory birds and many fish and mammal species.

Dubai Marina

Located in Dubai West, Marina is all made of canals that stretch for three kilometres along the Persian Gulf. This upmarket suburb is second in luxury to the city centre only.

Dubai Hills Estate

This luxury estate has become the most popular place of residence in the local expat community. It is located in the vicinity of the famous Dubai Hills Mall and the country's best golf course.

Emaar Beachfront

Conveniently nested between Marina and Jumeirah, this neighbourhood boasts a very well-developed infrastructure and is currently the best location for an off-plan property investment in Dubai.

Palm Jumeirah

Constructed as an archipelago of man-made islands, Jumeirah has joined the list of Wonders of the World, and you can even see it from outer space.

Tranio Editorial All articles by this author

The following article provides the guidelines on how to cancel a residence visa in the UAE in a case of different visa types and revocation

The following article provides the guidelines on how to cancel a residence visa in the UAE in a case of different visa types and revocation reasons. Tranio will explain what kinds of documents are required for visa cancellation, where to apply for it and how long it can take. The duration of the cancellation proceedings may vary in different cases. Following the instructions below you can save your time and energy when revoking your Emirati visa.

Whether you come to stay in the UAE with a work visa, on the grounds of permanent residence by investment or as a member of the main applicant's family, you will be issued the so-called residence visa, which is a renewable residence permit, effectively. This permit will have to be cancelled in case you decide to terminate your permanent residency in the country, which means being absent in the Emirates for more than half a year.

If you apply for the residence visa as an investor in UAE real estate, you will be fully independent of any local representatives: that is, the application and cancellation will be your responsibility. In all other cases, you are legally obliged to seek a local guarantor, formally called sponsor, and it is this person or legal entity that will apply for a residence visa on your behalf, and cancel it too, if required.

Remember that you will need to cancel your UAE residence permit formally even though its validity period is limited by default. Failing to apply for visa cancellation, you might have trouble trying to re-enter the country in the future.

However, before we go into specific details for each case, we would like to stress that you will receive your Emirates Identity Card together with a permanent residence (PR) permit, no matter what type of residence visa you obtain. And you should keep in mind that this card will also have to be cancelled under any of the procedures described below.

The ways to submit the application are the same in all cases, which is why we will explain them in a separate section at the end of this article.

Cancelling a UAE work visa (Labour Card)

In the case of a work visa, your employer serves as your sponsor, and you will need to notify him of your intention to terminate your permanent residency in the country. There is now a new law that stipulates that he cannot object to such a decision of yours, unless it violates some terms of your contract with him.

Next, it is him who will need to apply to:

1. The General Directorate of Residency and Foreigners Affairs for a cancellation of your residence visa;

2. The Ministry of Human Resources and Emiratisation for a cancellation of your work permit, called Labour Card in the UAE.

Cancelling a UAE work permit in case of changing jobs

If you merely want to change employers without actually leaving the country, you will still have to go through a basically identical procedure, since your residence permit is attached to your work visa. In other words,

And you do not have to leave and re-enter the country in the process.

Family residence visa cancellation in UAE

If you come to the UAE with your family, they will receive PR permits too, and you will be their formal sponsor, no matter what type of visa you have. Therefore, you will need to apply for the cancellation of their residence visas before your sponsor does his part of the job.

All you need to do is submit the application to the GDRFA in the way you would in all other cases. This part of the process is pretty straightforward, and there will most likely be no complications at all.

Residence visa cancellation for a person outside UAE

In general terms, one cannot revoke the Emirati residence visa from abroad unless the applicant has been residing outside of the country for at least half a year. But once a visa holder has been absent for six months, his or her residential visa will be terminated automatically, and the foreigner will be allowed to apply for the cancellation too.

In other words, if this is your scenario, just wait for the automatic termination of your visa and then apply for its cancellation, which you must do in any case, as we have mentioned in the introduction. The advantage of cancelling it this way, if you happen to be overseas at the time, is that you do not have to send your passport to the Emirates.

According to the recently amended legislation, a foreigner needs no visa sponsors when the residence permit is obtained by investment in the UAE real estate sector. In other words, you will be able to go through the process on your own in any of the ways described in the relevant section below.

Required documents of UAE residence visa cancellation procedure

1. Passports of a main visa applicant and his/her family members;

2. Emirates ID of a main applicant and his/her family members;

3. Cancellation letters from a main applicant and his/her family members;

4. In the case of a working visa:

How to Submit the Documents for Visa Cancellation

Basically, your choices are pretty much the same as in any other application to a government authority in the UAE:

1. Applying in person – in this case, in the GDRFA and MoHRE;

2. Asking a reliable legal agent or your own attorney to do the job for you;

3. Submitting an application online via one of numerous services, such as ICP or Sharjah. Usually, we recommend GDRFAD for the following reasons:

Visa cancellation costs and duration

The cancellation process normally takes a couple of days, plus one more day in the case of a work visa. Your sponsor will pay your cancellation fee for you, and you will have to pay 110 dirhams for each family member. And if you do it via the GDRFAD online service, you will pay:

Once the application is submitted, you might receive a notification that the documentation package is incomplete. You will have to send the required documents within a month from the date of application; otherwise, it will be cancelled automatically, and you are back to square one. And if the package is fine, you will receive a notification of it and the cancellation certificate via e-mail.

Your cancelled residence visa in the UAE will still be valid for another thirty days; after that, the authorities can charge fines for overdue stay with the following rates:

What to remember before cancellation of UAE residence visa

Preparing for the residence visa cancellation you need to make sure for that the following preparations are finished:

1. You should pay all your utility, medical and schools bills, as well as repay your bank loans if you have any;

2. Settle all financial matters with your employer and sign a confirmation letter that all due payments have been made;

3. Legally, your bank account has to be closed too, unless you only change employers.

Tranio Editorial All articles by this author

The UAE is known for its liberal taxation system. Low taxes

The UAE is known for its liberal taxation system. Low taxes and no income tax have become yet another reason why Dubai turned into one of the financial centres of the Middle East and continues to attract entrepreneurs from all over the world.

This does not really mean that there are no taxes in the UAE. Residents, for instance, are charged VAT, and banks and oil and gas companies are subject to corporate tax on their profits. On top of that, residents pay additional fees, ranging from business licence renewal fees to administrative fees on the purchase of real estate.

Tax Residency in UAE

Foreign citizens pay taxes in the Emirates if they have become tax residents in the country. The status of a tax resident applies to those foreigners who are living in the UAE for 183 days per year. In order to legally stay in the country for an extended period of time, a foreign citizen must obtain a residence visa in the Emirates.

There are double taxation avoidance agreements between the UAE and 92 other states. The double taxation avoidance means that the citizens receiving income in both countries of the agreement will only be taxed in one of them. Thus, foreigners earning income in the UAE pay taxes either in the home country or in the Emirates, but never in both countries. Even if taxes were overpaid by mistake, a foreign national may apply for a refund if the tax agreement had been signed before the tax payment. 

Income Tax in UAE

In the UAE, there is no income tax neither for individuals nor for companies in the vast majority of business fields. The exceptions are subsidiaries of foreign banks and foreign oil and gas producers.

Foreign oil and gas companies in the UAE are taxed at 50% and branches of foreign banks at 20%.

In all other industries, employees are paid the exact same amount as stated in their job contracts, and business owners pay no profit taxes on the company’s earnings.

Taxes for Legal Entities in UAE

Zero-rate income tax does not imply that there is no deduction to the state for doing business or working in Dubai.

Local companies and self-employed residents must regularly renew their business licences. A licence fee is paid every year in a range between 2,000 and 6,000 US dollars depending on the type of licenced activity.

Free zone employers also pay a monthly contribution ranging from 5.83% to 8.33% of an employee's salary to a pension fund. The contribution depends on the number of years of service.

Effective since July 2022, foreign workers employed by the UAE government will be able to receive a state pension. Previously, pension payments were only available to UAE nationals.

In 2023, the UAE will introduce a corporate income tax for the first time. The country's tax rate will be 9% for taxable income in excess of 375,000 UAE dirhams (102,000 US dollars). If a company earns less than this amount, however, it will not be subjected to profit tax. According to the UAE Ministry of Finance, this is done to support small businesses and start-ups.

Taxes for Individuals in UAE

The UAE’s new income tax law will not affect natural persons. The finance ministry announced that individuals will not need to pay income taxes on the earnings from employment, real estate, share investments or other personal income sources unrelated to trade or business in the UAE. The new income tax will also not apply to foreign investors doing no business in the country.

Value Added Tax (VAT) in the UAE

In 2018, the UAE introduced a VAT of 5%. The Emirati government attributed the VAT introduction to the fact that the county needs to reduce dependence on oil and other hydrocarbons as the main source of income. 

VAT is levied both on companies registered in the free zones and on companies from the UAE's local territory (mainland).

Property Taxes in Dubai

There is a transfer tax of 4% on property price for the real estate purchase. The tax amount is shared equally between the property buyer and the seller.

Along with the transfer tax, the buyer pays an administrative fee of 540 dirhams (147 US dollars) and a registration fee, which varies from 2,000 to 4,000 dirhams (545 to 1,089 US dollars) depending on the value of the property.

Dubai residents do not pay income tax when renting out their accommodation. Instead, there is a municipal levy, which is usually paid by the tenant as part of the utility bill. In Dubai, its rate is 5% of the annual rental value for residential properties and 10% for commercial properties.

There is no annual housing tax, gift or inheritance tax.

VAT is only payable on commercial property transactions.

Detailed information about property taxes in Dubai may be found in this article.

Tax on Accommodation in Dubai for Tourists

In the UAE, hotels and other tourist facilities may charge additional fees to visitors. The UAE state portal lists the following charges:

In Dubai, tourists are charged a tourist fee of 7 to 20 dirhams (1.91 to 5.44 US dollars) per night, depending on the hotel category.

Anastasia Nikitina All articles by this author

In April, at the start of sales in a boarding house under construction in Alanya, Tranio's clients and employees bought several apartments in the 50,000–60,000 euro price range with a rental yield of 7% per annum in euro. 

One apartment went to our regular client, an investor from Russia. The second one was bought by the commercial department’s employee. The third one was bought by our colleague from the editorial office, Anya, and her mother. Anya recounts her reasons for moving

In April, at the start of sales in a boarding house under construction in Alanya, Tranio's clients and employees bought several apartments in the 50,000–60,000 euro price range with a rental yield of 7% per annum in euro. 

One apartment went to our regular client, an investor from Russia. The second one was bought by the commercial department’s employee. The third one was bought by our colleague from the editorial office, Anya, and her mother. Anya recounts her reasons for moving assets from Russia to Turkey and tells about a rush demand for quality real estate in this price range.

Since the summer of 2021, Anya and her mother have been searching for housing in a warm climate, where they could spend the winter and which they could rent out for the rest of the year, earning income. The family lives in Ufa, Anya works remotely, and her mother is about to retire. They planned to invest around 50,000 euro in this project — such were the proceeds from selling two small investment apartments in their hometown.

Over several months of unhurried searching, Anya and her mother figured out several common problems with housing in warm coastal cities: heating, infrastructure, and rent management. For example, in Bulgaria, where the average winter temperature is about 5°C, there are many residential complexes without central heating. Even a small apartment is expensive to heat. In order to rent out resort real estate in the summer, you need to take into account the peculiarities of local legislation, look for tenants yourself or give up to 40% of rental income to management companies. 

At the same time, such a management company cannot be easily found everywhere — this applies to any country. Therefore, the family began to consider modern residential complexes with attractive infrastructure for tenants and their own management company. After the declaration of Bulgaria and Greece as unfriendly countries, the choice narrowed down to Turkey.

Decision needs to be made fast due to a rush demand in Turkey

Two managers worked with Anya and her mother: Inna from Tranio and Gulnara, our partner's consultant in Turkey. Inna defined the search criteria and helped Anya's family evaluate properties, while Gulnara searched for new options and sent details: project descriptions, apartment layouts and prices.

After three weeks of searching, a project under construction was found in Kargicak (Alanya), which met all the criteria. Anya booked it and made a deposit on the same evening. At the same time, two more apartments in this project were booked with Tranio’s help: one was bought by an employee of the commercial department of Tranio; the other — by our client, an investor from Russia.

Investment with a 7% annual rental yield

The main advantage of the project was the guaranteed rental income condition, which was included in the purchase agreement. The developer's management company provided the owners with an annual yield of 7–10% in euro, depending on the purchase volume. For Anya and her mother the investment yield will be 7% per annum.

The project’s concept is a five-star boarding house with basic medical care for the elderly. On the upper floors of the complex, 56 full-fledged apartments of various sizes are being built, and on the lower floors — a swimming pool, restaurant, library, sports complex, SPA and recreational areas for guests. The complex is located in the Kargicak area at the foot of the mountains, the beach can be reached in 5–10 minutes by a free shuttle service that runs every 30 minutes.

The developer plans to complete the project in March 2023 and provides buyers with instalments for this period. The first payment of 30% can be made within a month after the deposit, and the remaining amount — in instalments of 10% until the construction’s end. At the same time, a guaranteed yield of 7–10% is accrued to buyers immediately after making a full payment, even if the apartment is not yet ready for rent. Such conditions are justified by the demand for rent: by April 2022, the management company has already received more than 700 preliminary applications for accommodation; most of them are from elderly people from Finland and Sweden. 

According to the contract, it is the management company’s responsibility to maintain the apartments, pay utilities and taxes, as well as search for and move in tenants. Guaranteed rental yield under the contract is the net profit of the owners, which will be paid every six months. 

An important feature is that the owners will receive residential apartments equipped with appliances and furniture, and not commercial apartments, as is often the case in similar projects in European countries. Such a property will be easy to sell in a few years with an increase in value.

According to the management agreement, the owners are not allowed to live in their apartments, as those are intended for rent. Anya and her mother, as the owners of Turkish real estate, have the right to obtain a residence permit in Turkey and live there without time limits, use medical services, and even get an official job. Investment income of about 4,000 euro per year will be enough for a comfortable stay in Turkey during the winter. In addition, the developer made a gift to investors: 2 months of free accommodation in one of the developer’s finished projects. Anya and her mother plan to travel to Turkey at the end of summer 2022, stay in the developer's apartment and visit the construction site. 

Payment went through Tinkoff by a SWIFT transfer 

Anya and her mother distributed the proceeds from the sale of Russian apartments among dollar and euro deposits in three banks: VTB, Absolut Bank and Raiffeisen Bank, and partially cashed out in March 2022. In order to pay for the purchase of an apartment in Turkey, the family deposited funds in accounts in Tinkoff Bank. Anya sent a 1,000 euro payment for the reservation from her euro account to the developer’s Turkish account by a SWIFT transfer.

Investors’ risks are minimised

The project is being constructed by a Turkish developer from Alanya with more than 30 years of experience. The company specialises in coastal residential complexes with hotel infrastructure and is running several projects in parallel in 2022. The Turkish government is attentive to the real estate and construction industry, and supports it, calling it strategic. At the international MIPIM conference, Turkish Minister of Environment and Urbanism Marat Kurum noted that the construction sector played a key role in the country's economy. 

Developer has provided a TAPU in Turkey (certificate of ownership), a building permit and a site plan:

If Anya and her mother ever want to withdraw from the investment, the developer guarantees to buy back the property at the purchase price. However, real estate prices in Turkey are rising and in a few years such an investment apartment can significantly increase in value. The owners will be able to sell the apartment to other investors at the market price.

Investment as a new hope

Along with two successful investment projects in Russian construction with a yield of 15–18% per annum in roubles, the family also had an unsuccessful experience of investing in Russia. At the end of 2019, Anya and her mother bought a third investment apartment, the construction of which was supposed to be completed in December 2020. Due to the COVID–19 pandemic and the subsequent rise in construction costs, the completion of the project is still being delayed. The owners have not received compensation and are currently suffering losses due to the issued mortgage, which they have had plans to pay off after the sale of the finished apartment, exiting the investment.

Another misfortune was related to rent: before the sale, one of the apartments in Ufa was rented out to unscrupulous tenants; the resulting damage to the apartment exceeded the rental income. Although owners are not fully insured against troubled tenants anywhere, in most European countries, including Turkey, the rental market and management companies are better developed than in Russia. 

The family no longer plans to reinvest in Russian real estate.

Diana Imamgaiazova All articles by this author

These are the takeaways of Tranio’s tenth annual survey, conducted in late 2021 among 256 experts from 40 countries. The respondents shared their end-of-year recaps, forecasts and expectations for 2022.

Over the ten years that Tranio have been conducting market expert surveys, cross-border investors have gained more experience and developed stronger acumen.

Many of our clients already understand the rules of the investing game in the target market where they buy property, keep their yield expectations realistic, get surrounded by a team of advisors, and are on equal footing with local investors as a result. It was a rare case just a decade ago.

George Kachmazov Managing Partner at Tranio

Golden visas facilitating market rebound

Over half of the respondents (54%) saw foreign buyers ramping up or surpassing their previous level of activity. However, 17% of those surveyed believed that by the end of 2021, the situation would be the same or even worse than it had been at the outbreak of the COVID-19 pandemic.

The countries that offer residence-by-investment programmes (golden visas in Spain and Greece, golden passports in Malta, etc.) saw a faster market rebound than those regions that have no similar programmes. 40% of respondents in the countries offering golden visas or passports, compared to just 28% in the other states, believe that foreign buyers have become more active than before the COVID-19 pandemic outbreak.

During the COVID-19 pandemic, many found it difficult to adapt to the mandatory travel restrictions, so investors showed more interest in the programmes and products allowing for freer international travel.

George Kachmazov Managing Partner at Tranio

Based on the survey findings, we calculated the market recovery index for cross-border real estate investments in selected countries. The index value was set from 0 (if all the respondents chose the most pessimistic answer) to 1 (if all chose the most optimistic answer). Portugal reaches the highest market recovery index of 0.87, followed by Spain with an index of 0.86. Germany and Thailand close the list with an equal market recovery index of 0.29.

According to respondents in the Tranio survey, local buyers expressed more demand amid decreasing cross-border transactions in 2020–2021 in each of the countries reviewed.

All Tranio partners note increased interest from local buyers. Some of our partners targeting only foreigners before have now started to work with local clients as well.

It is still difficult to travel to other countries, yet money has to be invested somewhere so investors can tap into their local markets.

Marina Filichkina Head of Sales at Tranio

Average transaction value for housing at €354,000

The survey findings allow for an estimation of the median budget of residential property sales by foreign buyers. The median budget averaged over all the reviewed countries amounts to €354,000, with material deviations in each state. Housing is the most expensive in France (with a median budget of €1,000,000) and the USA (€933,000), and the cheapest in Turkey (€200,000).

House prices and the market recovery index correlate: on average, the median budget is higher in countries where the markets bounce back better in 2021.

European buyers most active and clients from Russia and China outflowing

The majority of respondents (62%) believe that Europeans are the most active buyers acquiring property outside their home countries. This view is shared by 100% of respondents in France, 91% in Spain, and 90% in Italy.

The second most active in 2021 are buyers from Russia and the neighbouring C.I.S. countries (42%), followed by investors from the Middle East, China, the USA, and Israel. Some respondents note that market players from Canada, India, the Balkan States, Australia, Brazil, Egypt, and the SAR were also active.

Survey findings identified an interesting inter-country trend: the more active Europeans are said to be, the less active buyers from Russia and the C.I.S. are. This trend was most visible in Turkey, where 73% of respondents reported high activity from Russian buyers, while only 18% reported activity from Europeans. On the contrary, only about 17–19% of respondents in France, Spain, and Italy said buyers from Russia were active in the property market.

Property buyers from the Middle East stayed most visibly active in Turkey (55% of respondents), Cyprus (38%), and Greece (32%).

Investors from China were the top property buyers in the USA (71% of respondents) and the top three in Portugal (30%). US nationals were the top two buyers in Portugal (40%).

The most significant decline in cross-border investment activity by nation was among Russian and Chinese investors who were singled out by 38% and 28% of respondents, respectively. Nevertheless, some respondents reported a considerable outflow of buyers from Europe, the Middle East, and India.

The diminishing activities by Russian-speaking buyers were most marked in Spain and Italy (stated by 65% of respondents in each of the countries) and Montenegro (57%). Conversely, Russian-speaking buyers remained almost the same in Cyprus (the reduction is specified by only 8% of respondents) and in Turkey (by 9%).

Acquisitions by the Chinese declined sharply in Greece (noted by 61% of respondents) and Cyprus (50%). However, the business landscape was quite the opposite in the USA, France, and Montenegro, where not a single respondent noted the outflow of Chinese property buyers.

Property investment from Europeans declined the most in the Turkish market (marked by 64% of respondents), the USA (50%), and Latvia (40%).

There is a moderate degree of correlation between transaction value and the predominant investment choices of foreign buyers. The outflow of Russian and Chinese property buyers was most salient in the high-end foreign markets and was less evident in the affordable markets, whereas European buyers exited the affordable foreign markets in the first place.

As the outflow of foreign buyers in 2020–2021 was primarily connected with the COVID-19 restrictions, cross-border activities by buyers might be expected not just to bounce back but also to exceed the pre-pandemic level as the restrictions are lifted — the pent-up demand will revive the market.

George Kachmazov Managing Partner at Tranio

Interest in golden visas grows most strongly in Portugal and declines in Latvia

In 2021, the average number of investors willing to obtain a golden visa or passport in the countries offering such programmes rose by 1.2 times in comparison to the previous year. According to our respondents, Portugal stands out among the offering states, with the average interest in the residence-by investment programme doubling compared to the year 2021. Portugal is followed by Montenegro with a 1.5-fold increase over the same period of time.

As of 2022, Portugal no longer issues residence permits for investments into residential properties in coastal locations, including Lisbon and Porto.

The Montenegrin golden passport programme was expected to be suspended in late 2021, but was extended until the end of 2022 at the last moment.

So investors had to speed up property acquisitions in both countries, seizing the moment when the programmes were still valid as before.

Elena Milishenkova Chief Commercial Officer at Tranio

According to the survey participants, interest in golden visas did not develop only in two countries in 2021: Cyprus retained the level of the previous year, and interest in Latvia went down by 38%.

Interest in golden visas and the market recovery index are reported to be tightly interconnected, which upholds the underlying assumption that residence permits and golden visa programmes helped the market to navigate through the crisis.

Online transaction availability facilitating market recovery

International travel restrictions have brought about a growth in online transactions. The survey respondents estimate that foreign property buyers closed an average of 23% of transactions online without visiting the country of property acquisition in 2021. Portugal leads the way again, with online transactions making up 42% of the overall breakdown.

Our clients buying rental apartments now more often tend to close transactions remotely rather than in person in the country of purchase.

Newly developed apartments in districts with high rental yields are almost all sold out at the earliest construction stages when there is nothing to look at on the construction site.

Elena Milishenkova Chief Commercial Officer at Tranio

The number of remote acquisitions correlates with the market recovery index. This leads us to the assumption that the availability of online transactions, in addition to golden visas, is yet another driver of cross-border sales.

Other factors, alongside border closures, boosted online transactions in 2021. In particular, 44% of respondents say that buyers opted for a remote transaction because they were willing to buy real estate before price growth. Another 42% of respondents note that sellers have been more actively using digital to show properties by conducting e-viewings or filming drone videos of properties.

Fear of price hike is thought to be the main motivation for online transactions in Thailand (reported by 100% of respondents), Montenegro (83%), and Cyprus (78%), whereas the importance of a digital property show is noted especially in France (80%), Turkey (64%), and Italy (61%).

Most survey participants in Portugal (67%) believe that remote property purchase gained traction as clients made acquisitions to obtain residence permits. This survey option also tops the list in Greece, chosen by 44% of respondents.

About 80% of all Tranio clients who bought their properties remotely in 2021 were looking for golden visas or golden passports.

Marina Filichkina Head of Sales at Tranio

The property market rebounded faster in 2021 in countries where sellers were more actively showing their properties online. This conclusion is underpinned by the strong correlation between the responses about online transaction drivers and the market recovery index.

Property market players optimistic about the future

60% of respondents believe that the international property market would be more active in 2022 than before the COVID-19 pandemic. 68% of respondents anticipate this in the countries offering golden visa programmes.

We expect that the balance in sales of different types of property will be tipped as the property market recovers. For example, investors in short-term rentals would now be looking more often for long-term rental properties.

Elena Milishenkova Chief Commercial Officer at Tranio

Similar to the market recovery index, we have calculated the expert optimism index in the cross-border property investment market of the selected countries, showing expectations for the 2022 market. The optimism index has a maximum value of 1 in the USA, where 100% of respondents believed in the best-case scenario at the end of 2021. The optimism index exceeds 0.67 in all countries except Thailand, where 40% of respondents anticipate another pandemic or yet another severe crisis in 2022.

Similar to the market recovery index, we have calculated the expert optimism index in the cross-border property investment market of the selected countries, showing expectations for the 2022 market.

The optimism index has a maximum value of 1 in the USA, where 100% of respondents believed in the best-case scenario at the end of 2021. The optimism index exceeds 0.67 in all countries except Thailand, where 40% of respondents anticipate another pandemic or yet another major crisis in 2022.

We identified a correlation between the expert optimism index and online transaction drivers. The expert optimism index is higher in countries that facilitate online transactions through laws or other state measures. However, it is lower in countries where banks are more willing to open accounts remotely.

I believe the online transaction trend is here to stay for the long term. Many investors acquired investing know-how to choose counterparties and make major investment decisions and will be keeping up this business acumen after the COVID-19 pandemic.

George Kachmazov Managing Partner at Tranio

Rostislav Chebykin, Editor-in-Chief All articles by this author

Dubai and Abu Dhabi are two of the UAE’s largest cities that are the most popular among international investors. In general, Dubai is more attractive for expats who account for about 85% of its population. Abu Dhabi, in its turn, is more often сhosen for property investment by Emirati nationals and those from the neighbouring Gulf countries. Nevertheless, Abu Dhabi's property market can also be of interest to foreign investors from other regions.

In this article, we will take a look

Dubai and Abu Dhabi are two of the UAE’s largest cities that are the most popular among international investors. In general, Dubai is more attractive for expats who account for about 85% of its population. Abu Dhabi, in its turn, is more often сhosen for property investment by Emirati nationals and those from the neighbouring Gulf countries. Nevertheless, Abu Dhabi's property market can also be of interest to foreign investors from other regions.

In this article, we will take a look at the key parameters of the two emirates’ markets: residential property prices, average yields and return on investment. We will also compare the residency programmes in the two emirates.

Dubai leads in terms of supply and pace of construction

As data from the Dubai Land Department shows, the volume of construction in the emirate is increasing every year and has not even declined much due to the COVID-19 pandemic. Already in the first quarter of 2022, 15,441 units have been completed in Dubai. 30,019 units were built in 2020 and 29,180 units in 2021.

In Abu Dhabi, construction volumes are not as high. Accordingly, the number of units on the market is limited. In the first quarter of 2022, less than 200 units were completed, according to CBRE. Another 9,588 units are expected to be completed by the end of the year. During 2021, 4,182 new housing units were built in the emirate.

The Dubai government also has high-flying plans for the emirate’s development. By 2040 it is expected that:

Abu Dhabi’s economy is still more oil-dependent than that of Dubai, so the emirate’s main goal is to overcome its economic dependence on oil and develop other sectors. Abu Dhabi’s Land Department also aligns with the government’s urban development plan, which is still aimed at laying the groundwork for urban planning, construction and transport.

Real estate value: Dubai is overtaking the rate of the price increases

Both Dubai and Abu Dhabi have urban areas where foreigners are allowed to buy property and those available only for UAE citizens.

According to the latest CBRE report, the average price of a flat in Abu Dhabi in March 2022 was 2,969 US dollars per square metre. The average price of a villa, on the other hand, was 2,409 US dollars per sqm. It is worth noting here that compared to Dubai there is less English-language analytics available where the Abu Dhabi market is concerned. 

Residential property prices in Abu Dhabi have risen by 1,5 over the past 12 months by March 2022. At the same time, flat prices have risen by 1.6% and villa prices by 1.1%. 

Rental cost

The rental cost in Dubai has risen by 19.1% over the past year. In May this year, the average annual rental price for a flat was 22,729 US dollars, while a one-year rent of a villa constituted an average of 67,976 US dollars, according to CBRE calculations. 

In Abu Dhabi in 2021, the average annual rent for a two-bedroom villa was 30,492 US dollars (or 2,541 US dollars per month), while three and four-bedroom villas were 36,481 US dollars and 57,172 US dollars respectively, according to ValuStrat.

The average annual rent for a one-bedroom flat in the capital last year was 13,885 US dollars (or 1,157 US dollars per month), and for a one-bedroom flat it was 21,780 US dollars. For two- and three-bedroom flats, the tenants paid 31,581 or 43,560 US dollars respectively.

Comparison of yields

Bayut Real Estate Marketplace has calculated the return on investment for villas in Dubai and Abu Dhabi for 2021. According to Bayut, the most profitable districts of the two cities are these:

Residence visas for investment in Dubai and Abu Dhabi

In both emirates, foreigners can obtain a residence permit for purchasing real estate: in the UAE such permit is called a residence visa. Dubai issues several types of residence permits for the purchase of real estate:

As for Abu Dhabi, it offers only one residence permit program for investment. For purchasing real estate in Abu Dhabi, a foreign investor can obtain a Golden Visa for five years for a property worth from 545,000 US dollars.

Starting from September 2022, new legislation will come into force, and for an investment of $545,000 foreigners will be able to get a Golden Visa for 10 years instead of 5 years. It will be valid throughout the UAE and therefore applies to both Dubai and Abu Dhabi.

A residence visa is available for the investor’s family members as well: the spouse, sons under the age of 25, daughters of any age, if they are not yet married, and parents of the investor. 

Anastasia Nikitina All articles by this author

Dubai is the capital of the eponymous emirate, the largest of the seven emirates of the country in terms of population. The city is home to 3.5 million people. Notably, about 85% of Dubai’s residents are expats.

From the end of 2020 to April 2022, Dubai’s population increased by 100 thousand people. Attracting new residents is one of the main goals of the emirate’s government. City officials expect that in 20 years 5.8 million people will live in Dubai. Concurrently, the expansion

Dubai is the capital of the eponymous emirate, the largest of the seven emirates of the country in terms of population. The city is home to 3.5 million people. Notably, about 85% of Dubai’s residents are expats.

From the end of 2020 to April 2022, Dubai’s population increased by 100 thousand people. Attracting new residents is one of the main goals of the emirate’s government. City officials expect that in 20 years 5.8 million people will live in Dubai. Concurrently, the expansion of the city area and the construction of new urban areas continue.

Downtown Dubai: the tourist centre

Downtown Dubai is the central area of the city, where the main attractions are located: the Burj Khalifa, the Dubai Mall — the world's largest shopping centre, the singing fountain and the Dubai Opera. Due to so many famous places, there are always a lot of tourists in Downtown. 

Downtown has a well-developed residential and transport infrastructure: there are many shops and restaurants, a metro line and bus routes. There is a small green park in the centre of the district. Urban planning and development of the area was carried out by the development company Emaar. 

From Downtown, it is easy to get to the main business centres of the city: the Business Bay area, the DIFC free economic zone and the Dubai Internet City technology park. On the other hand, Downtown is located relatively far from the city beaches: at a distance of a 20-minute car drive. There are also no schools in Downtown, only kindergartens.

Property prices in Downtown are among the highest in the city. In March 2022, the cost of housing in the area was 5,920 US dollars per square metre, which is 84% higher than the city average.

Downtown is classified as a freehold zone, which means that foreigners can buy property in the area.

Business Bay: the business district

This area of Dubai is one of the major financial centres in the Middle East. It is located on the bank of the Dubai Canal, between the Downtown and Jumeirah areas. Most of the area's development is reserved for office and retail space. Nevertheless, there are also many residential complexes located in Business Bay. 

Typically, young professionals and bachelors, office workers and entrepreneurs settle in Business Bay. Almost 18 thousand companies are registered in the region. However, there are very few parks and playgrounds here.

Business Bay has its own metro station, and many bus routes pass through the area. As well as from Downtown, from Business Bay it is easy to get to other centres of economic activity: the DIFC free economic zone and the Dubai Internet City technology park.

Occasionally young families also choose Business Bay. For them, this area is more attractive than Downtown because there are more kindergartens and primary schools here. While there are no schools for older children in the district itself, the neighbouring areas have many preparatory and secondary schools, including prestigious international schools like GEMS and Safa British School.

In 2022, the average cost of real estate in Business Bay is 3,967 US dollars per square metre.

Dubai Marina: a comfortable life in the centre

Dubai Marina is a coastal area near a man-made bay, next to the Palm Jumeirah. This district is built up with skyscrapers, which form a recognisable silhouette of the city. Among them are the Cayan Tower, twisted by 90 degrees, and the Princess Tower. 

Dubai Marina is home to a variety of residential and commercial buildings, as well as the Marina Mall and the Marina Walk — a scenic 7-kilometre-long promenade. The beach is within walking distance. There are two metro stations, bus and tram routes in the area.

This prestigious district is very convenient for living: there are supermarkets, local grocery stores, gyms, beauty salons, clinics, kindergartens — all within walking distance from any residential building. 

The disadvantages of the area include the lack of schools, heavy traffic during rush hour and high noise levels. The housing prices are quite high as well. The average price per square metre in Dubai Marina is 3,748 US dollars. The median price for a one-bedroom apartment is 340,321 US dollars.

Jumeirah: the elite coastline and islands

Jumeirah is a coastal region best known for its artificial island of Palm Jumeirah. Hotels and private villas occupy most of the island. The famous Atlantis Hotel and a large water park are located here. However, there are few grocery stores and restaurants outside the hotels on the island; there is also no public transport other than a monorail connecting the island to the mainland. 

Life in the main part of the Jumeirah region looks completely different. The prevalent buildings of the district’s continental part are low-rise villas. Families often choose to settle here. Jumeirah has a well-developed residential infrastructure with many supermarkets, schools and clinics. Large green parks are located in this area: Safa Park and Jumeirah Beach Park. In close proximity is the Persian Gulf coast with its city beaches and water sports opportunities.

The easiest way to get around the district is by taxi or your own car. The nearest metro station is far from the coast, near Sheikh Zayed Road.

Jumeirah is considered an elite area and real estate prices reflect that. The average price per square metre here is 8,912 US dollars. It should be noted that the average cost of housing is so high due to the extremely expensive high-end villas on the coastline. The median price for a one-bedroom apartment in Jumeirah is 191,668 US dollars.

Part of Jumeirah is classified as a freehold zone. Therefore, there are certain locations where foreigners can buy housing in this district, such as Jumeirah Heights and Jumeirah Lake Towers.

MBR City: “a city within a city” on the lagoon

Mohammed Bin Rashid Al Maktoum City (also known as MBR City) is named after the current Prime Minister of the United Arab Emirates. It is a 12–15 minute drive from Downtown. 

MBR City is an ambitious city-within-a-city project that has everything you need for a comfortable living. Several large green parks, a shopping mall, an amusement park, a golf club, and a racing club are located here. There are also two international British schools in the district.

MBR City has a relatively low building density for Dubai and so it has enough space left for parks, gardens and courtyards, which is rare in Dubai. In the centre of the district there is a man-made lagoon with a 14-kilometre-long embankment, with jogging and cycling paths.

Many buildings in MBR City are still under construction, so it can be difficult to move into a finished apartment quickly. There is no metro line in the area yet, but there are bus routes. MBR city is located close to the main streets of Dubai: Sheikh Zayed Road and Al Khail Highway.

MBR City is one of the largest freehold zones in Dubai, which means real estate is available for purchase by foreigners.

Dubai Creek Harbour: a new symbol of the city

On the bank of the Dubai Creek there is another massive project: a 550-hectare area called Dubai Creek Harbour. 

The developers of the district have tried to arrange a very comfortable life for both singles and families with children. There are numerous parks and gardens, swimming pools, gyms, playgrounds, nurseries and kindergartens in the area. The prevalent development here consists of modern skyscrapers. 

It takes 10–15 minutes to reach Downtown from Dubai Creek Harbour by car.

The symbol of the area is the white Dubai Creek Tower, which is inspired by the Hanging Gardens of Babylon. It was supposed to be completed in 2022, but due to the COVID–19 pandemic, its construction was temporarily put on hold. A shopping mall larger than the Dubai Mall, hotels, restaurants and a marina with a yacht club will be built near the Tower in the future.

The builders of the Tower see it as a new symbol of the city and compare it to the Eiffel Tower in Paris.

Foreigners are allowed to buy residential property in Dubai Creek Harbour. 

Deira: a historic district

Deira is located in the east of Dubai, next to the neighbouring city of Sharjah. Previously, before the start of large-scale construction in Dubai, Deira was the business centre of the city. 

There are a lot of historical sights in Deira, for example, the Heritage House — one of the oldest buildings in the UAE, which was built in 1890. There are also many traditional oriental bazaars in the area.

Families with children most often settle in this district, so there are many clinics, kindergartens and schools in Deira. There are three metro stations here as well, and at one of them the Red and Green metro lines intersect.

Deira is considered one of the areas with the most affordable prices for living. However, this district does not classify as a freehold zone, so foreigners cannot buy housing here.

Anastasia Nikitina All articles by this author