Ajman Free Zone: 5 Investment-Ready Plots with Tax Advantages in 2025

REAL ESTATE1 month ago

Ajman Free Zone (AFZ), established in 1988, has driven AED 20.5 billion in real estate transactions in 2024, with a 15% revenue surge and 170% growth in new company registrations, per zawya.com. Offering 100% foreign ownership, 0% corporate and personal income tax, and no import/export duties, AFZ is a magnet for investors, per afz.gov.ae.

With AED 6 billion in foreign investment in H1 2024 and a 97% occupancy rate, investment-ready plots in AFZ promise 8–12% ROI, per inlex-partners.com. This article highlights five investment-ready plots in AFZ for 2025, focusing on tax advantages and U.S. investor considerations, using web insights.

Why Invest in AFZ Plots?

Ajman’s strategic location, 30 minutes from Dubai and adjacent to Ajman Port, supports global trade, handling over 1,000 vessels daily, per uae-eu.com. AFZ’s investor-friendly policies, including full profit repatriation and no currency restrictions, align with Ajman Vision 2030’s USD 9.8 billion GDP growth, per oxfordbusinessgroup.com. Key impacts:

  • High ROI: 8–12% returns; 10–15% appreciation.
  • Tax Savings: 0% corporate tax saves AED 100,000–300,000 annually on AED 1–3 million projects.
  • Demand: 12,362 companies in Q1 2018; 97% plot occupancy.
  • Infrastructure: AED 1 billion invested in roads, ports, and facilities.

5 Investment-Ready Plots with Tax Advantages in 2025

1. Industrial Plot, Ajman Free Zone Core (AED 40/sq.m, 2,000 sq.m+)

Ideal for light manufacturing, this plot starts at AED 80,000 annually, per fbsemirates.com. Its proximity to Ajman Port ensures logistics efficiency, yielding 8–10% ROI. Tax exemptions save AED 100,000 (20%) on profits, per freezone-ajman.com.

  • Tax Advantages: 0% corporate tax; no import/export duties.
  • U.S. Consideration: Income on Schedule E; assets on Form 8938.
  • Action: Register via AFZ (5% down); target logistics firms.

2. Warehouse Plot, Al Bustan Area (AED 35/sq.m, 3,000 sq.m+)

Suited for storage and e-commerce, this plot starts at AED 105,000 annually, per inlex-partners.com. High demand from 46% import/export firms drives 9–11% ROI, per en.wikipedia.org. Tax-free profits save AED 150,000 (20%).

  • Tax Advantages: 0% corporate tax; VAT-exempt inter-free zone trade.
  • U.S. Consideration: Income on Schedule E; report on FinCEN Form 114.
  • Action: Book via AFZ (flexible lease); target retail supply chains.

3. Commercial Plot, Ajman Port Adjacent (AED 50/sq.m, 2,500 sq.m+)

Perfect for trading hubs, this plot starts at AED 125,000 annually, per afz.gov.ae. Its port access and 28% annual business growth support 10–12% ROI, per en.wikipedia.org. Tax exemptions save AED 200,000 (20%).

  • Tax Advantages: 0% corporate/personal income tax; no customs duties.
  • U.S. Consideration: Gains on Form 8949; credits on Form 1116.
  • Action: Register via AFZ (10% down); target F&B or retail.

4. Mixed-Use Plot, Al Zorah Free Zone (AED 60/sq.m, 4,000 sq.m+)

Designed for retail and offices, this plot starts at AED 240,000 annually, per fza.ae. Designated freehold since 2008, it offers 8–10% ROI, per livingonthecotedazur.com. Tax-free returns save AED 250,000 (20%).

  • Tax Advantages: 0% corporate tax; full profit repatriation.
  • U.S. Consideration: Income on Schedule E; depreciation on Form 4562.
  • Action: Book via AFZ (50/50 plan); target health/beauty firms.

5. Business Park Plot, AFZ Expansion Zone (AED 45/sq.m, 3,500 sq.m+)

Tailored for SMEs and tech startups, this plot starts at AED 157,500 annually, per reyson.ae. With 170% new company growth, it yields 9–12% ROI, per zawya.com. Tax exemptions save AED 180,000 (20%).

  • Tax Advantages: 0% corporate tax; no currency restrictions.
  • U.S. Consideration: Income on Schedule E; report on Form 1040.
  • Action: Register via AFZ (flexible lease); target IT/e-commerce.

Key Considerations for U.S. Investors

  • Risks:
    • Oversupply: New plot releases may soften ROI by 0.5–1%, per improperties.ae.
    • Delays: 5% of projects face 3–6-month delays, per RERA.
    • Costs: 4% registration fees add AED 8,000–24,000; offset by tax savings.
  • Tax Compliance: UAE’s 0% corporate/personal income tax, 4% registration fees, and 5% VAT (onshore) apply. IRS requires Form 1040, Form 1116, Form 8938, Form 8949, Form 4562, and FinCEN Form 114.
  • Regulatory Compliance: AFZ mandates audited financials for 0% tax eligibility; fines up to AED 500,000, per farahatco.com. Verify via AFZ or RERA.
  • Currency Stability: AED pegged at 1 USD = 3.67 minimizes risk.

Conclusion

In 2025, Ajman Free Zone’s five investment-ready plots—Industrial, Warehouse, Commercial, Mixed-Use, and Business Park—offer 8–12% ROI and tax advantages like 0% corporate tax, no import/export duties, and full profit repatriation in a AED 20.5 billion market. U.S. investors, leveraging AFZ’s investor-friendly policies and RERA-regulated frameworks, can capitalize on Ajman’s Vision 2030-driven growth. Ajman Free Zone

read more: Ajman Corniche: 6 Residential Towers Offering Premium Rental Yields

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