Buying a Property Under an LLC: A Complete 2025 Guide

Looking to buy a house under an LLC? RAS Corporate Advisors simplifies LLC company setup, protecting your assets, being tax efficient, and maintaining your privacy while purchasing real estate using an LLC. If you’re purchasing investment property under an LLC or transferring the ownership, we make it simple.

Contact us today to get expert advice on how to secure your real estate investment with an LLC!

Introduction

Buying real estate through an LLC is a step many investors and entrepreneurs take to safeguard their assets and optimize their finances. Whether you are looking for ways to shield personal assets or maximizing your tax effectiveness, buying a home through an LLC can be highly beneficial. RAS Corporate Advisors provides in-depth information on the benefits, making it easier to buy property through an LLC. This guide demystifies the intricacies involved, making it simple to make the right choices.

Benefits of Buying Property Under an LLC

Knowing the advantages of purchasing property in LLC structures can make you understand why this path is preferred by most. These advantages are:

• Asset Protection: Purchasing a home under an LLC protects your assets from legal obligations associated with the property.
• Limited Liability: Protects your risk by separating business funds from personal funds.
• Tax Efficiency: Depending on the jurisdiction, purchasing a property in an LLC may provide substantial tax benefits.
• Privacy Protection: Keeps your identity confidential from public records.
• Estate Planning: Simplifies succession planning, allowing for a smoother family wealth transfer.

Selecting the Right Business Activity for Your LLC

When buying investment property under an LLC, it’s vital to choose the right business activity. Consider these categories:

• Investment: Select this if your LLC plans on acquiring properties for rental income or value appreciation.
• Holding: Ideal if the LLC simply owns the property without any active operational activities.

Also Read : How Profitable is the Real Estate Business in Dubai?

Transferring a Property from an Individual to an LLC

If you already own property individually and wish to transfer it to an LLC, follow these essential steps:

1. Open a File in RERA

To commence the transfer, register your file with Dubai’s Real Estate Regulatory Agency (RERA). Assemble the following documents:

• Trade License (LLC must be registered for real estate ownership)
• Title Deed (Current property ownership document)
• Shareholders’ Documents (Passport copies, Emirates ID) – Arabic translation required
• MOA (Memorandum of Association) – Legally translated into Arabic
• Application Form – Stamped and signed, including mobile and email address

After preparing these, submit them to the Trustee Registration Center. The estimated cost is AED 2,000.

2. How to Transfer Property to an LLC (Main Process)

Once registered with RERA, proceed with the following:

• Trade License (LLC must be valid and eligible to own real estate)
• MOA (Memorandum of Association) – Arabic translation required
• Incumbency Certificate – Arabic translation required
• NOC from Free Zone Authority (If applicable)
• Good Standing Certificate (From the Free Zone Authority if applicable)
• Title Deed (Original property document)

Submit these documents to the Trustee Registration Center for processing.

Also Read : How To Find Investors In Dubai

Costs Involved in Buying Property Under an LLC

Understanding the costs associated with buying a property under an LLC is crucial:

1. Trustee Registration Fees:

• AED 2,100 if the property value is below AED 500,000
• AED 4,200 if the property value is above AED 500,000

2. Dubai Land Department (DLD) Fees:

• 4% of property value + AED 290 if purchasing from an external party.
• 25% of property value + AED 290 if transferring ownership from an individual to an LLC.

Also Read : LLC Company Setup In Dubai: A Complete Guide To Formation, Costs & Process [2025]

Additional Tips or Common Mistakes

Successfully navigating the property transfer process requires awareness of both pitfalls and best practices:

• Thorough Documentation: Incomplete documentation can stall the process. Ensure you complete each requirement accurately.
• Tax Consultation: Seek expert tax advice to maximize savings potential and avoid legal missteps.
• Stay Updated: Jurisdictional rules change. Stay informed of the latest regulations affecting LLC and real estate markets.

Conclusion

Buying property with an LLC is a strategic step that provides asset protection, tax effectiveness, and greater anonymity. But proper structuring and compliance with the legal requirements must be ensured in order to derive the maximum benefit from these advantages.