should be understood and aligned with each investor’s long-term goals and preferences when choosing the ownership structure. 2 - Analyzing Corporate Tax Aspects The new CT regime may impact real estate transactions, especially certain income from Immovable Property in a Free Zone subject to the 9% CT rate: 1. Income from transactions with non-Free Zone Persons in respect of Commercial Property (i.e. Immovable Property located in a Free Zone and used exclusively for a Business or Business Activity). 2. Income derived from residential units, hotels and other Immovable Property that is not Commercial Property irrespective of payor’s identity. 3 - Completing Efficient Due Diligence Considerations before finalizing any property purchase: - Verifying ownership and legal status with the respective emirate authorities to ensure clear legal standing, free from disputes or encumbrances. - Confirming legitimacy of ownership and seller’s authority to transact. 4 - Addressing Relevant Contractual Aspects Contracts and agreements must accurately reflect agreed terms including purchase price, payment terms, delivery date, specifically in off-plan purchases, contingencies for project delays. To mitigate uncertainties, explicitly include provisions for unforeseeable events (“Force majeure”), particularly relevant to off-plan projects that may face challenges linked to pandemics, governmental responses to crises or wars, or armed conflicts. 5 - Ensuring Proper Registration and Transfer of Assets Completing the registration and transfer of property ownership in accordance with UAE law: - Obtaining a title deed from the relevant land department (e.g. Dubai Land Department) in the property’s emirate. WWW.LAWYER-MONTHLY.COM 51
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