Real estate business in the UAE demands precise alignment between license scope, jurisdiction, regulatory approvals, and operational substance from the outset. Whether brokerage, property management, development, or holding, the setup must comply with emirate-specific rules, particularly Dubai's Real Estate Regulatory Agency (RERA) under the Dubai Land Department (DLD) for brokerage and related activities. As of February 2026, 100 percent foreign ownership applies in most commercial real estate activities across mainland and free zones, but regulated operations like brokerage require mandatory RERA registration, training, and exams for individuals and company staff. Mainland suits direct local transactions and government tenders, while free zones favor advisory, international consulting, or holding structures with streamlined processes and potential Qualifying Free Zone Person tax treatment on qualifying income.
Defining the Business Activity and Required License
Real estate activities split into brokerage (sales, leasing), property management, valuation, development, or passive holding. Brokerage and agency services require a commercial or professional license plus RERA approval, including staff registration with RERA cards before practicing. Development needs land ownership proof or partnerships and specific DLD approvals. Holding or investment structures use commercial licenses for asset ownership without active trading. A brokerage targeting Dubai sales incorporates mainland for unrestricted access, while an international advisory firm selects a free zone to focus on consulting without local transaction mandates. Inaccurate activity wording triggers amendments, delays, and compliance risks.
Choosing Mainland vs Free Zone for Real Estate Operations
Mainland licensing through the Department of Economy and Tourism allows full UAE market participation, direct client contracts, and eligibility for government projects. It requires physical office leasing verified by Ejari, influencing visa quotas and substance perception. Free zones offer faster registration, flexi-desk options initially, and international scope, though mainland dealings may involve permits or distributors under recent Dubai rules. For brokerage, mainland often proves essential due to RERA's emphasis on local presence and transaction oversight. A property management company serving UAE residents chooses mainland for seamless operations, whereas a holding entity owning international or UAE freehold assets prefers a free zone or financial center like DIFC for governance flexibility.
Securing RERA Approval and Broker Licensing
RERA registration is mandatory for brokerage, leasing, or management in Dubai. Individuals complete approved training (Dubai Real Estate Institute), pass the RERA exam, provide good conduct certificates, and obtain RERA ID cards. Companies register the license and staff with RERA post-formation. Non-compliance prevents legal operations or marketing. A new brokerage firm incorporates first, then enrolls staff in training and exam processes to activate RERA cards before listing properties or closing deals.
Office, Substance, and Visa Requirements
Office needs vary: mainland mandates verifiable premises via Ejari for credibility and quotas, while free zones accept flexi-desk for advisory or holding but require upgrades for substance in brokerage. Substance under corporate tax and banking rules demands UAE-based decision-making, residency, and operational evidence. Visa quotas tie to license and office size, supporting investor visas for founders and employee sponsorships. A holding company owning Dubai freehold property demonstrates substance through residency and records to secure banking and maintain Qualifying Free Zone Person status where relevant.
Corporate Tax, VAT, and Financial Implications
Corporate tax applies at 0 percent up to AED 375,000 taxable income and 9 percent above, with small business relief potentially treating revenue below AED 3 million as zero for periods ending December 31, 2026. Rental income from commercial real estate in free zones may qualify for 0 percent if tenants are free zone persons and conditions met; otherwise, 9 percent exposure. Residential rentals often attract 9 percent. VAT at 5 percent charges on commercial property supplies and rentals; residential remains exempt. Holding structures segregate income streams carefully. A brokerage tracks commissions and fees meticulously for VAT output and input recovery.
Banking, Governance, and Risk Controls
Banks scrutinize real estate businesses for source of funds, client profiles, AML compliance, and transaction alignment with license. Brokerage requires robust KYC, escrow handling, and anti-money laundering controls. Governance includes clear shareholder agreements, signing powers, and record-keeping to prevent disputes. Risk controls involve counterparty checks, contract templates, and insurance.
Partners such as ALand, guided by Dr. Pooyan Ghamari, support real estate setups by verifying activity eligibility under RERA and DLD, selecting jurisdictions for market access or holding efficiency, preparing RERA registrations and documentation, ensuring substance for banking and tax preferences, and providing ongoing oversight to maintain compliance, avoid penalties, and scale operations without structural rework. Real estate business setup in the UAE succeeds when focused on regulatory fit, substance demonstration, and disciplined compliance rather than minimal entry, creating a credible, bankable presence in a high-value market.