Real Estate Company Formation.
Holding property within a company and acting as a broker for property owned by others are two separate structures. In both, the country is decided by where the property is, the company's ownership of property and tax.
Real Estate Formation Decided by Four Criteria.
What decides is where the property is, whether the company can acquire property, the account into which rental income is paid and the type of activity.
Country of the propertyTitle registration and taxes on property are subject to the rules of the country where the property is located.
Registration of the property, the fees paid on purchase and the annual taxes are subject to the rules of the country where the property is located; where the company is formed does not change these rules. The decision is therefore in most cases made starting from the property: first the property, then the company.
Company ownership of propertyNot every type of company can be registered as a property owner in every country.
Whether a free zone company in Dubai can register Dubai property in its own name depends on the arrangement between the Dubai Land Department and the relevant free zone. In the UK, holding property within a Ltd company is a common structure. In Northern Cyprus, the acquisition of immovable property by foreigners is subject to Council of Ministers permission; the company structure is assessed before the permission process.
Account into which rent is paidIf rent is paid into the company account, both income and expenses appear in the company's accounting records.
If the property is held within the company, the party to the lease and the account into which rent is paid belong to the company; maintenance, insurance and management expenses are tracked in the same records. Paying the rent into a personal account removes the purpose of holding the property within the company.
Brokerage activitySelling or letting property owned by others requires a separate licence.
Holding your own property within a company is an investment structure; selling or letting property owned by others is brokerage. In Dubai, sales and leasing brokerage requires a licence from RERA, which is part of the Dubai Land Department, and an application card for employees. The activity description is made at the formation stage according to this distinction.
Property Location and Country Selection.
A summary first: the country matching your situation is indicated below. A comparison of the three countries follows.
The property is in the UK
Holding the property within a Ltd company is common; rental profit is subject to corporation tax, and an Annual Tax on Enveloped Dwellings (ATED) return is filed every year for residential property worth more than £500,000.
The property is in Dubai
Registration in the company's name depends on the free zone's arrangement with the Dubai Land Department; the free zone is therefore chosen at the formation stage.
You will act as a broker in Dubai
Sales and leasing brokerage is carried out with an RERA licence and an application card for employees.
You also want residence with the property
The only country where a residence visa application can be made through the company.
| Criterion | Dubai | United Kingdom | Northern Cyprus |
|---|---|---|---|
| Structure and formation | Free zone or mainlandThe choice of mainland or free zone determines both the registration of the property and the brokerage licence. | Limited · Companies HouseRental profit is subject to corporation tax; for residential property worth more than £500,000, the company files an ATED return every year. | Free Port · limitedA Free Port company pays customs duty and VAT in the domestic market; the exemption has no effect for property in Northern Cyprus. |
| Residence / visa for the team | Residence visa through the company | Company formation does not provide residence | Company formation does not provide residence |
| Tax framework | 0% up to AED 375,000, 9% aboveOn net profit; free zone companies included. | 19-25%, depending on profit19% up to £50,000, 25% above £250,000; a gradual transition in between. | 0% on business outside Northern CyprusFor a Free Port company; sales to companies within the Free Port are also exempt. Normal tax rules apply to sales to a local company within Northern Cyprus. |
| Setting up a real estate company in Dubai | Setting up a real estate company in the UK | Setting up a real estate company in Northern Cyprus |
The tax cells are a general framework, not a personal opinion.
Formation cost, typical timeline and bank channels are not included in this table: as they do not depend on the industry, they are presented in the full comparison of the three countries. Compare the Three Countries by Criteria
You can send us the location of the property, your ownership plan and how the rental income will be paid; the structure is assessed together.
Request an AssessmentBrokerage with an RERA licence
Setting up a real estate company in Dubai
Dubai has two separate structures: holding property in the company's name and acting as a broker for property owned by others. Each requires a different licence and different registration.
- Registration of a free zone company as a property owner in Dubai depends on the relevant free zone's arrangement with the Land Department; the free zone is chosen at the formation stage.
- Sales and leasing brokerage is carried out with an RERA licence, which is part of the Dubai Land Department.
- The only country where a residence visa can be obtained through the company.
Restrictions to note for Dubai3 items
- Presence in the UAE is required for the visa and biometrics; this step cannot be carried out by proxy.
- In addition to formation, a licence renewal cost arises every year. The second-year renewal should be planned from the start.
- Registering property in the company's name is not possible in every free zone; the free zone is chosen before registration.
A common company structure for property
Setting up a real estate company in the UK
In the UK, holding property within a Ltd company is common and formation is carried out remotely. Rental profit is subject to corporation tax; a separate return is filed every year for high-value residential property.
- Holding property within a Ltd company is common; a separate company can be formed for each property.
- The lease and the income are in the company's name; expenses are tracked in the same records.
- No travel to the UK is required at any step of formation.
Restrictions to note for United Kingdom3 items
- Company formation does not provide a right of residence. Immigration is a separate process.
- Those holding residential property worth more than £500,000 within a company file an ATED return every year and pay tax according to the value band; exemptions are claimed through the return.
- The approval rate at traditional banks is low for non-resident partners; in practice, we start with a payment institution account.
Property in the domestic market, no exemption
Setting up a real estate company in Northern Cyprus
Property in Northern Cyprus is a domestic market activity: the tax exemption of a Free Port company does not apply here. The acquisition of immovable property by foreigners is also subject to Council of Ministers permission; the structure is assessed together with the property.
- An Eastern Mediterranean location.
- Contract and accounting practices are similar to those in Turkey, so the compliance process is short.
- If the property is outside Northern Cyprus, the tax exemption of a Free Port company for activity outside Northern Cyprus applies.
Restrictions to note for Northern Cyprus3 items
- Rental and sales income from property in Northern Cyprus is a domestic market activity; the Free Port tax exemption does not apply.
- The acquisition of immovable property by foreigners is subject to an application to the Ministry of Interior and Council of Ministers permission.
- It is not an EU member and is not the same country as Southern Cyprus.
Our Services for Real Estate Investors
The criteria above decide the matter; the services below cover putting that decision into effect. All of them are services we currently provide.
- Company formationThe company that will hold the property or act as a broker is formed according to the property's registration conditions and the licence; the activity description is made according to this distinction.
- Accounting and reportingRental income and property expenses are tracked in the monthly accounting records; filings and annual financial statements are prepared in the same cycle.
- Banking and payment systemsWe prepare the application file for the corporate account into which rental income will be paid and manage the process.
- Visa and residenceIn Dubai, the residence visa through the company, the medical test and the Emirates ID steps are included in the formation plan.
The scope, timeline and fee of the service vary by country; details are on the relevant country page.
Frequently Asked Questions.
This depends on the rules of the country where the property is located and on your tax position; personal opinions are not given through the site. The function of a company structure is to bring the lease, the income and the expenses together in a single set of accounts.
Whether a free zone company can register Dubai property in its own name depends on the arrangement between the Dubai Land Department and the relevant free zone. The free zone is therefore chosen at the formation stage, together with the property.
Sales and leasing brokerage requires a licence from RERA, which is part of the Dubai Land Department; the activity under the licence cannot be carried out without an employee application card.
The company's rental profit is subject to corporation tax. A company holding residential property worth more than £500,000 files an ATED return every year and pays tax according to the value band; in some cases an exemption is claimed through the return.
No. Property in Northern Cyprus is a domestic market activity and the Free Port tax exemption does not apply here. The acquisition of immovable property by foreigners is also subject to Council of Ministers permission.