Dubai opens a window that thousands of Spaniards were waiting for: 10-year residency without aggressive taxation, no mandatory minimum stay, with real estate property generating 7-10% annual returns. Transactions broke records in 2024, exceeding 761 billion dirhams, while European tax pressure pushes capital toward jurisdictions with clear legal structure.
The change came in February 2026, when the Dubai Land Department relaxed requirements for mortgaged properties. Today they accept mortgages with 50% down payment and valuation of 2 million AED or higher. This modification multiplies the purchasing power of Spanish investors who combine bank leverage with access to Dubai as a second tax hub. Areas like Dubai Hills Estate and Meydan register 18% increases in demand since January 2026.
What is the Golden Visa and why it accelerated in February 2026
The Golden Visa is the 10-year residency program that the United Arab Emirates launched to attract international investors. It doesn’t require minimum stay, allows sponsoring direct family members, and renews automatically by maintaining the investment. It requires a minimum investment of 2 million dirhams (approximately 500,000 euros) in a single property or several real estate assets that add up to that amount.
The regulatory change of February 2026 responds to pressure from developers and banks seeking to expand the off-plan market toward buyers with limited capital. Before you had to pay 500,000 euros without financing; today you enter with 250,000 euros in initial down payment plus mortgage, provided the valuation reaches 2 million AED. This attracts European professionals with high incomes but liquidity committed to other assets.
The market closed 2024 with 761 billion dirhams, a record that exceeds the previous year by 12%. Qualifying areas: Dubai Hills Estate, Meydan, Business Bay and Dubai Marina. Off-plan properties qualify from signing if you include a developer certificate with active escrow account.
Why Dubai Hills Estate and Meydan lead demand now
Dubai Hills Estate positions itself as the most ambitious residential project with deliveries between 2026-2028. It offers villas from 2.2 million dirhams and apartments from 1.8 million AED, with access to a golf course designed by Greg Norman and direct connection to Downtown Dubai. Profitability averages 7-9% annually, higher than Spain’s 4-5%.
Since January 2026, transactions grew 18% year-over-year, driven by European buyers escaping 45-50% taxation. The typical profile: entrepreneurs with revenue of 200,000-500,000 euros annually who transfer tax residency to Dubai (0% income tax) while maintaining operations in Europe.
- Dubai Hills Estate: 1.8-2.5 million AED, 7-9% annual return, delivery 2026-2028
- Meydan: 2.1-3.2 million AED, 8-10% annual return, delivery 2027-2029
- Business Bay: 1.8 million AED, central location with Burj Khalifa view
- Dubai Marina: 2.5-3 million AED, complete infrastructure, lower risk
Meydan stands out for its strategic location next to the racetrack. Properties average 2.1-3.2 million dirhams, with returns of 8-10%. The advantage: off-plan developments with extended payment plans (70% during construction, 30% at handover), locking in price while the area appreciates. Data shows 12-15% appreciation between signing and delivery.
How this affects Spanish investors with limited capital
Faced with this scenario, investors with committed liquidity access Golden Visa by combining leverage with 50% down payment. Typical case: property of 2 million AED (500,000 euros) requires entry of 1 million AED (250,000 euros) plus mortgage. Emirati banks offer financing with rates of 4-5% annually, amortization over 15-20 years, demonstrating verifiable income.
The problem worsens when you don’t structure taxation correctly. Buying in a personal capacity doesn’t exempt you from paying taxes in Spain if you maintain Spanish tax residency. The key: transfer tax residency to Emirates (requires 183 days/year in UAE or tax residency certificate), liquidate economic ties in Spain, and demonstrate to the Tax Agency that the center of vital interests was transferred.
The consequences of tax error hit hard: double taxation, penalties for not declaring real estate assets abroad (form 720), and loss of tax advantages. The AEAT intensified controls over Spaniards with properties in UAE since 2024. If you maintain family, business or more than 183 days in Spain, the Tax Agency claims full taxation on global income.
Why this reveals structural change in residency market
Beyond the specific opportunity, the relaxation responds to regional competition to attract international capital. Abu Dhabi launched similar programs in January 2026, Saudi Arabia accelerates its Vision 2030, and Bahrain simplified requirements in 2025. Gulf governments compete to become a tax hub for European professionals fleeing growing tax pressure.
The mechanism is simple: residency without aggressive taxation in exchange for real estate investment that drives local development. Dubai needs foreign capital to finance infrastructure projects valued at 300 billion dirhams until 2030 (Dubai 2040 Urban Master Plan). Investors obtain income-generating asset plus favorable tax residency; the government obtains capital flow without debt.
| Aspect | Before 2026 | Since February 2026 |
|---|---|---|
| Financing | Only without mortgage | Accepts mortgage with 50% down payment |
| Minimum valuation | 2M AED paid | 2M AED valued |
| Off-plan properties | Rejected | Accepted with certificate |
This reveals something important: real estate assets in Dubai for 2026 are no longer just speculative investment but structural tax planning tool. The profile changes: less pure speculator, more entrepreneur with 10-15 year vision who protects wealth and reduces tax burden without violating regulations.
What steps to follow if you decide to invest in February 2026
Looking ahead, the complete process includes six verifiable phases. First, identify qualifying property in freehold zone with minimum valuation of 2 million AED. Second, sign contract with developer registered with Dubai Land Department, paying 50% down payment plus fees (4% of value). Third, apply for mortgage at licensed bank, presenting income documentation.
Next steps: obtain investment certificate issued by DLD confirming that the value reaches 2 million AED. Then, apply for Golden Visa through the official GDRFA portal, uploading passport, property titles and financing proof. The process takes 4-8 weeks from application to issuance.
| Actor | Expected Action | Timeline |
|---|---|---|
| Investor | Select property + financing | Weeks 1-4 |
| GDRFA | Process Golden Visa application | Weeks 7-12 |
| Investor | Transfer effective tax residency | Months 6-12 |
Meanwhile, the window could close if demand pushes prices upward. Data from January-February 2026 shows 8-12% increases in qualifying areas, reducing safety margin. Optimal strategy: lock in price with off-plan contract now, take advantage of payment plan during construction (70% in installments until 2028), and capitalize on appreciation during delivery.
Key questions to understand everything
Q: Can I obtain Golden Visa if I finance 100% with mortgage?
A: No. Minimum requirement: 50% down payment of valued amount (1 million AED for property of 2 million AED).
Q: Does the Golden Visa automatically make me a tax resident of Dubai?
A: No. You need 183 days/year stay in UAE or tax residency certificate issued by local authority.
Q: What happens if I sell the property before 3 years?
A: You lose the Golden Visa. Requirement: maintain minimum investment for at least 3 years.
Q: Can I combine multiple properties to reach 2 million AED?
A: Yes. The requirement is total combined amount, not single property, as long as they qualify in freehold zones.
