Since the enactment of the Dubai International Financial Centre`s (DIFC) pertinent REIT regulations in 2006 the DIFC has allowed the creation of REIT trusts or corporations within its perimeter. As DIFC-based property funds and REITs are now considerably gaining in investors` interest, it is time to take a closer look at the determining factors and available options. Dubai`s DIFC has established itself as the region`s prime financial jurisdiction, offering a robust common law legal framework and thus becoming the domicile of choice for many property fund structures.
Offering political and economical stability, double taxation treaties with more than 60 jurisdictions worldwide besides an environment that is free of income and corporate taxes (exceptions are few), the United Arab Emirates (UAE) exhibit some generally desirable strong points for the set-up of estate and succession planning solutions.
Embedding real estate assets within corporate structures has been practiced for years for a variety of reasons.Whether it is to shield assets from the owner`s private sphere and thus contain i.e. liability risks, whether it is to pass on assets to certain persons or legal bodies possibly bypassing succession laws; reasons are diverse and go well beyond the regularly-cited tax evasion.