Dubai has revised the residency framework for company owners, shortening the initial free‑zone visa from three years to two while keeping the mainland visa at three years. The changes are tied to new tax obligations and a push to encourage mainland business activity.
Free‑zone vs. mainland company visas
| Aspect | Free‑zone company | Mainland company |
|---|---|---|
| Initial residency period | 2 years (Emirates ID + visa) | 3 years |
| Tax regime (2023 onward) | No corporate income tax, no VAT on most activities | 9 % corporate income tax and 5 % VAT |
| Financial reporting | No mandatory audits or financial statements | Audits and regular reporting required |
| Reason for change | Shortening the visa makes free‑zone ownership less attractive, steering entrepreneurs toward mainland entities that now contribute tax revenue. | Visa length unchanged to retain appeal despite added tax burden. |
Green Visa (5‑year residency)
The Green Visa targets company owners and high‑earning residents. Key eligibility points:
- Salary requirement – The applicant must show a monthly salary of at least US $4,000 (or the equivalent in AED). Because the salary is set by the owner’s own free‑zone company, it can be declared at the required level in the employment contract.
- Education requirement – A bachelor’s degree or recognized diploma is mandatory. Authorities have indicated that lacking this qualification may require a higher salary or greater company capital, though exact thresholds are not publicly detailed.
- Company type – The visa is available to owners of free‑zone companies; mainland owners can also apply if they meet the salary and education criteria.
- Upgrade path – Holders of the initial two‑year free‑zone visa can upgrade to the five‑year Green Visa by meeting the salary and education conditions. The visa can be renewed every two years if the upgrade is not pursued.
Golden Visa (10‑year residency)
The long‑term Golden Visa is granted to investors who meet one of the following:
- Real‑estate investment – Purchase of property in Dubai valued at AED 2 million (≈ US $545,000).
- Other qualifying investments – Not detailed in the source, but typically include substantial business ownership or specialized talent.
Practical considerations for prospective applicants
- Salary declaration – Since the salary is self‑determined, it must be realistic and supported by a proper employment contract to avoid bank‑account opening issues. Advisable to set the salary at US $4,000–5,000 per month for Green Visa eligibility.
- Bank account opening – Proper documentation (employment contract, salary proof) usually enables account opening within a day; informal providers may suggest lower salaries that can cause delays or rejections.
- Tax implications – Mainland companies will be subject to the 9 % corporate tax and 5 % VAT from 2023 onward. Free‑zone entities remain tax‑free but now have a shorter initial residency term.
- Visa renewal strategy – After the initial two‑year free‑zone visa, owners can:
- Extend for another two years under the same terms.
- Upgrade to the five‑year Green Visa if salary and education criteria are met.
- Switch to a mainland company to retain a three‑year visa while accepting tax obligations.
- Invest in qualifying real estate to obtain the ten‑year Golden Visa.
Risks and caveats
- Regulatory volatility – Dubai frequently updates visa rules; non‑compliance can lead to visa denial or revocation.
- Documentation accuracy – Inaccurate salary declarations or missing educational credentials can result in application rejection.
- Tax exposure – Choosing a mainland company brings mandatory tax reporting and compliance costs that free‑zone owners avoid.
- Investment thresholds – The property‑based Golden Visa requires a substantial capital outlay (≈ US $545,000), which may not be feasible for all applicants.
Overall, the revised visa structure encourages entrepreneurs to consider mainland incorporation for longer residency and to contribute to the UAE’s emerging tax base, while still offering pathways—through salary levels, education, or real‑estate investment—to secure longer‑term residency for free‑zone business owners.
