20/01/2025

Everything You Need to Know About Commercial Property in Dubai

Whether you're looking to invest, lease, or expand your business, understanding the commercial property landscape in Dubai is essential. In this blog post, we’ll cover everything you need to know about navigating Dubai's thriving commercial real estate market.

What types of commercial property are available in Dubai?

There is a vast range of property types to cater for every business in Dubai. From office space to warehouses, restaurants and everything in between.

Can I buy and rent out a commercial property as an overseas resident?

Yes, you are able to purchase and/or rent the property on a freehold basis as an overseas investor or expat.

Do I need a trade licence to have a business in Dubai?

Yes, you will need a trade licence to legally conduct any form of business activity in the UAE. Each business entity must be registered and possess a valid trade licence from the relevant local authority. 

Do I have to pay VAT on commercial property in Dubai?

Yes, the basic rate of VAT rate is 5% and applies to most goods, services and properties. As a commercial real estate owner, you will be subject to mandatory VAT if the value of your taxable supplies exceeds AED 375,000. If you're a registered VAT taxpayer, you can usually recover the VAT paid on expenses related to the property. 

Can I get a commercial mortgage?

Yes you can! Although rates vary from a residential mortgage, you can obtain a mortgage for a commercial space as an individual or as a business entity.

What are free zone licences?

A free zone licence in Dubai permits a company to operate within a designated geographical area with specific tax and trade regulations. There are currently 26 free zones across Dubai.

What is the difference between a mainland licence and free zone licence?

The fundamental difference between the two is the geographical scope. A free zone company cannot do business outside of the free zone they have registered in. This restriction does not apply to mainland companies who have permission to operate everywhere in UAE. Mainland businesses have broader market access and can work with local and international customers.

What are the benefits of starting a business in a free zone? 

One of the many benefits of operating in a free zone is that they offer tax incentives, including corporate tax exemptions and no capital gains tax, along with the ability to be fully owned by foreign investors.

What are the benefits starting a business in a mainland zone?

Having a mainland licence gives you unrestricted market access, with no limitations on conducting business across UAE and beyond. A mainland business licence signifies increased credibility in the UAE and, not to mention, there are no visa limits in the mainland.

Do I need a certain size office for a visa allocation?

Within a free zone area, you generally need 9 square meters per person for an office, and 15 square meters per person in warehouse.