UAE real estate investment vehicles for Colombian capital

Dubai's real estate boom

Dubai closed 2024 with AED 761B in real estate transactions (+38% YoY) and maintains the pace in 2025. The offering for foreign capital has sophisticated beyond direct unit purchases.

Available structures

1. Listed REIT (DIFC)

Liquid access via Nasdaq Dubai. Mandatory 80% NOI distribution. 0% taxation if maintained as QFZP. Ideal for tickets ≥ USD 250k seeking exposure without operations.

2. ADGM private fund (Qualified Investor Fund)

Minimum USD 500k per professional investor. Allows development, value-add or premium residential strategies. Structured as Investment Company or Investment Limited Partnership.

3. SPV holding (BVI/Cayman/ADGM Foundation)

For direct property purchase. Benefits:

• Confidentiality over ultimate ownership.
• Facilitates generational transfer without triggering DLD transfer fees.
• More efficient exit structure.

Colombian considerations

• F.4 reporting: foreign financial investments (including REIT and fund participations) must be reported to Banco de la República if above USD 500.
• CFC regime: if the SPV is controlled and passive, income may be attributed to the Colombian shareholder.
• Colombia-UAE Treaty: in force since 2022, reducing dividend withholding to 5% if participation ≥ 20%.

Recommendation

For Colombian HNWIs, the winning combination is typically ADGM Foundation + ADGM private fund, balancing succession confidentiality with tax efficiency and treaty access.