Can UAE Golden Visa Help In Tax Exemption? What Experts Say
According to the India-UAE tax treaty, anyone residing in the UAE for more than 183 days becomes a UAE resident and is taxed only on income earned in India, an expert explained.
The golden visa, or any other visa, gives permission to enter and stay in a country but it doesn’t change the tax laws pertaining to income earned from the country of origin, according to Ved Jain, managing partner at VJA Legal.
Jain emphasised that earlier, to get a golden visa, an individual was required to have an investment of around Rs 4.6 crore, similar to programmes in countries like the US, attracting foreign investments.
However, under the UAE's new scheme, Jain said that individuals can qualify with an investment as low as Rs 23.3 lakh.
"The aim isn’t direct capital infusion, but to engage high-net-worth individuals through nomination. This promotes them to spend their life in the UAE, and gradually contribute to its economy, culture, and scientific development," Jain added.
Jain explained that a tax residency is decided by where and how long an individual stays. "According to the India-UAE tax treaty, anyone residing in the UAE for more than 183 days becomes a UAE resident and is taxed only on income earned in India," he added.
On the contrary, Jain underscored that if someone resides in India with a golden visa for more than 182 days then they will be liable to pay tax on their global income.
Besides, golden visa gives ease to expand one's business along with global mobilisation, while applying for any international visa, according to Ankit Kapoor, chief operating officer at Asas Capital.
Range Of Applicants For Golden Visa
The Dubai golden visa attracts multiple range of applicants, including high-net-worth individuals and millionaires with global aspirations, according to Paresh Karia, chief operating officer at Acquest Advisors.
Karia mentioned that golden visa is preferred by Indians looking to expand their reach beyond India due to multiple reasons, including relatively easier eligibility compared to other nations' visa programme.
Though the scheme existed earlier as well, Karia highlighted that the surge in property sales was among the cause to overshadow the nomination route.
"Initially, nominations were reserved for personalities like Shah Rukh Khan and Rajinikanth. Over time, the category included young entrepreneurs, business leaders, and professionals who met specific criteria," Karia added.
