The Arab Emirates have become a very attractive destination for Latin Americans and so has residence in Dubai.
Residence in Dubai vs. Residence in Panama, which is better? Here we’ll see the pros and cons of these two countries.
Residence in Dubai, the largest and most highly populated city of the United Arab Emirates is all the rage among Internet Gurus and Youtubers. These days, it’s one of the most important trade centers of the world. Local authorities have implemented a program for granting residence through two mechanisms. How does one obtain this residence? Is it better than residence in Panama?
Dubai, a pearl of the Middle East
Dubai is situated on the Persian Gulf, between Abu Dhabi and Sharja. Dubai’s economy depends on income from financial services, real estate, tourism and trade. Urban development during the last decade has been impressive and can currently count on more than 500 skyscrapers. More than a few big multinational businesses have decided to transfer their headquarters to Dubai because of the tax advantages offered by the Emirate. Duty-free zones and special economic zones abound there. In addition, Dubai has signed more than 80 double taxation agreements, so that businesses and investors reach a better tax optimization.
How to obtain a residence in Dubai
There are two residence programs in Dubai. Of all of them, the one used most is registering a business in Dubai or in one of the multiple duty-free zones which operate in the United Arab Emirates. The visa of the owner / investor is valid for three years after the incorporation. It can be renewed once this period is over, when and if the business demonstrates a good financial situation.
The other mechanism for obtaining residence in Dubai is to purchase property. For this, you will have to purchase real estate at a minimum value of $275,000 American dollars. This type of visa is valid for two years and won’t allow you to work legally in Dubai. The main advantage of this mechanism is that it costs much, less than registering a business in Dubai.
Advantages of settling in Dubai
Dubai’s residential visa allows you to request a similar visa for your direct family members, like your spouse and children under the age of 18. From an economic point of view, there are various advantages. In Dubai, those who obtain residence through either of the two mechanisms already spoken about won’t have to pay income taxes. Nor will corporate taxes be applied to businesses or people who are fiscal tax residents in the Emirate.
Is Dubai better, or is Panama, as a trade center?
If you were one of those who are searching for a second residence, you might wonder “Which is more convenient? Residence in Dubai or residence in Panama? Both countries have programs for attracting foreign investors, but there are noteworthy differences.
The residence visa in Dubai has a maturity date and the authorities demand that you enter the Emirate at least once every six months, while residence in Panama can become permanent, since you only lose it when you leave the country for two consecutive years. Plus, obtaining residence in Panama costs 10 times less than in Dubai.
The cost of living is very different. It’s not by chance that they call Dubai “the city of luxury”. This spectacular urban area works well for big businessmen, who look for multimillionaire shops; however, it’s not for a medium sized-investor. Panama is very different. It also attracts big fortunes, however, it also offers options for those who don’t have a six-figure bank account.
Dubai and banks
These days, many banks prefer to neither send nor receive money from banks in Dubai or other Emirates. Many of these entities have been found involved in dubious negotiations, for which traditional banks look suspiciously at any connection to money originating there.
On the contrary, Panama has a better international reputation. Despite the country having been included in grey-lists and blacklists by different organizations, and the country’s name appears in the Panama Papers, one thing is certain: that with a Panamanian residence and a Panamanian bank account, you can move around the world without problems. If you want to obtain residence in Panama, consult with the Caporaso and Partners law offices. Our partners in Dubai can guide you through the process quickly and efficiently.