How to buy real estate in Dubai through a foreign parent company?

Many holding companies accumulate cash over the years. Dividends from operating subsidiaries, asset disposals, undistributed profits… The amounts can become significant. Leaving these funds idle in a bank account is not always optimal.

Creating a subsidiary in Dubai allows this cash to be used to acquire real estate in a dynamic environment while maintaining a clear corporate structure. The parent company remains at the top of the organizational chart. It owns 100% of the shares in the Dubai subsidiary, which becomes the investment vehicle.

In practical terms, the foreign parent company establishes a company in Dubai. This subsidiary will be legally independent (it has its own legal personality, unlike a branch), but wholly owned by the holding company. It will have its own articles of association, bank account, and accounting records.

The funds required for the real estate investment will be provided by the parent company in two complementary ways:
- As share capital;
- Through a shareholder current account.

Once the subsidiary has been funded, it can proceed with the acquisition of the real estate property or properties in Dubai. The property legally belongs to the local company, not directly to the parent company.

The Dubai subsidiary will have to maintain full accounts. This means preparing a balance sheet and an income statement each year. This discipline is not an unnecessary constraint: it makes it possible to document precisely the value of the assets, rental income, expenses, and net profit.

A locally licensed auditor will have to prepare an annual report. This point is essential. It ensures the transparency and compliance of the structure. The parent company therefore has a clear and formalized view of its subsidiary’s financial situation.

At the same time, minutes of a general meeting will have to be drafted each year. This document approves the accounts, decides how the profit will be allocated, and formalizes important decisions. It provides legal protection and evidence of good governance.

This organization enhances the credibility of the structure with banks, partners, and, of course, the parent company.

One of the major advantages of this structure lies in the upstreaming of dividends.

Once the Dubai subsidiary generates profits - for example, through rental income or a capital gain - it can distribute dividends to its parent company. If the conditions are met in the holding company's country (France, Belgium, etc.), the parent-subsidiary regime may apply.

Under certain conditions, this regime allows the parent company to benefit from an almost total exemption on the dividends received. In practice, this means that the funds can be upstreamed with highly optimized taxation at the holding company level.

The structure then reveals its full value. The investment is made in Dubai, the profits are consolidated at the parent-company level, and everything remains fully documented.

Contrary to ideas circulating online, this is not about an “opaque arrangement.” Quite the opposite. This approach is based on classic corporate law principles: a holding company, an operating subsidiary, documented flows, and transparent accounting.

Another significant advantage concerns having a local presence.

Creating a subsidiary in Dubai makes it possible to appoint a local manager. The latter can obtain a residence visa linked to the company. For a director or representative of the holding company, this facilitates travel, property management, and the development of complementary activities in the region.

This subsidiary can then become a genuine foothold in the Middle East.