Meydan City: 6 Residential Projects Aligned With UAE Corporate Tax Rules in 2025

REAL ESTATE1 month ago

Meydan City, a dynamic hub in Dubai’s AED 2.3T real estate market in 2024 (18% YoY growth, AED 458B transactions), is gaining traction for its residential projects tailored to high-net-worth investors and expats (85% of Dubai’s 3.7M population, mainly India, UK, Russia).

Six off-plan developments Azizi Riviera Azure, Azizi Riviera Belle, The 100 by Sobha, Meydan Avenue, Sobha One, and District One Residences offer luxury apartments, villas, and townhouses (AED 1.2M–15M) with 7–10% ROI and 6–9% appreciation by 2026. Supported by Dubai’s infrastructure (Dubai Metro, Sheikh Zayed Road) and 2040 Urban Master Plan, these projects benefit from freehold laws since 2002, enabling 100% foreign ownership.

UAE’s tax reforms include zero personal income, capital gains, and property taxes, with 2% Real Estate Transaction Tax (RETT) exemptions for off-plan purchases (saving AED 24K–300K). A 9% corporate tax applies on mainland profits above AED 375K, but Meydan Free Zone offers 0% corporate tax for Qualified Free Zone Persons (QFZP) meeting specific criteria (e.g., non-mainland revenue <5% or AED 5M).

Small Business Relief (SBR) exempts SMEs with revenues below AED 3M until 2026. The Domestic Minimum Top-up Tax (DMTT) at 15%, effective January 2025, targets multinationals with revenues over €750M, leaving most investors unaffected. This guide analyzes these projects, detailing rental yields, freehold benefits, tax strategies, and investment potential, supported by 2024–2025 data.

1. Azizi Riviera Azure

Project Details: A waterfront development by Azizi Developments in Meydan City, offering 1–3 bedroom apartments (AED 1.2M–3.5M, 600–1,800 sqft) with canal views, retail access, and resort-style amenities. Handover Q3 2025. Average price: AED 1,900–2,500 psf. 8 minutes to Downtown Dubai.
Rental Yields: 7–9% (1-bed: AED 60K–100K/year; 3-bed: AED 150K–220K/year), with 7% rental growth in 2025 due to 85% occupancy and proximity to Business Bay. Short-term rentals yield 8–10%.
Freehold Benefits: 100% freehold ownership via Dubai Land Department (DLD). Enables global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 24K–70K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 6K–17.5K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities with qualifying income (e.g., international or free zone revenue). SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 5.4K–19.8K/year). Double tax treaties with 138 countries (e.g., India, UK) minimize foreign tax liabilities.
Sustainability Features: Energy-efficient systems, green spaces, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 1.2M apartment to AED 1.27M–1.3M). 85% occupancy due to lifestyle appeal and investor visa eligibility (AED 750K+). Tax savings (AED 24K–87.5K) via free zone attract Indian and UK investors.

2. Azizi Riviera Belle

Project Details: A luxury tower by Azizi Developments in Meydan City, offering 1–3 bedroom apartments (AED 1.3M–3.8M, 650–1,900 sqft) with canal views, fitness centers, and proximity to Meydan Racecourse. Handover Q4 2025. Average price: AED 2,000–2,600 psf. 10 minutes to Dubai Mall.
Rental Yields: 7–9% (1-bed: AED 65K–105K/year; 3-bed: AED 160K–230K/year), with 7% rental growth in 2025 due to 85% occupancy and tourism demand. Short-term rentals yield 8–10%.
Freehold Benefits: 100% freehold ownership via DLD. Supports global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 26K–76K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 6.5K–19K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 5.85K–20.7K/year). Double tax treaties enhance tax efficiency.
Sustainability Features: Green building practices, smart automation, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 1.3M apartment to AED 1.38M–1.41M). 85% occupancy due to racecourse proximity and investor visa eligibility (AED 750K+). Tax savings (AED 26K–95K) via free zone attract Indian and UK investors.

3. The 100 by Sobha

Project Details: An exclusive gated community by Sobha Group in Meydan City, offering 100 ultra-luxury villas (AED 8M–15M, 4,000–7,000 sqft) with private pools, smart home systems, and golf course views. Handover Q2 2026. Average price: AED 2,000–2,500 psf. 8 minutes to Downtown Dubai.
Rental Yields: 7–8% (villas: AED 350K–600K/year), with 7% rental growth in 2025 due to 90% occupancy and high-net-worth demand. Short-term rentals yield 8–9%.
Freehold Benefits: 100% freehold ownership via DLD. Enables global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 160K–300K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 40K–75K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 31.5K–54K/year). Double tax treaties minimize foreign tax liabilities.
Sustainability Features: LEED-certified, eco-friendly materials, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 7–9% appreciation by 2026 (e.g., AED 8M villa to AED 8.56M–8.72M). 90% occupancy due to exclusivity and Golden Visa eligibility (AED 2M+). Tax savings (AED 160K–375K) via free zone attract Russian and UK investors.

4. Meydan Avenue

Project Details: A mixed-use development by Meydan Group, offering 1–4 bedroom apartments and townhouses (AED 1.5M–5M, 700–2,500 sqft) with retail, dining, and green spaces. Handover Q1 2026. Average price: AED 2,100–2,800 psf. 10 minutes to Burj Khalifa.
Rental Yields: 7–9% (1-bed: AED 70K–110K/year; townhouses: AED 180K–280K/year), with 7% rental growth in 2025 due to 85% occupancy and central location. Short-term rentals yield 8–10%.
Freehold Benefits: 100% freehold ownership via DLD. Supports global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 30K–100K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 7.5K–25K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 6.3K–25.2K/year). Double tax treaties enhance tax efficiency.
Sustainability Features: Energy-efficient designs, green spaces, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 1.5M apartment to AED 1.59M–1.62M). 85% occupancy due to mixed-use appeal and investor visa eligibility (AED 750K+). Tax savings (AED 30K–125K) via free zone attract Indian and UK investors.

5. Sobha One

Project Details: A luxury residential project by Sobha Group in Meydan City, offering 1–4 bedroom apartments and duplexes (AED 1.8M–6M, 800–2,800 sqft) with skyline views, wellness amenities, and smart tech. Handover Q4 2026. Average price: AED 2,200–2,700 psf. 8 minutes to Downtown Dubai.
Rental Yields: 7–9% (1-bed: AED 75K–115K/year; duplexes: AED 200K–300K/year), with 7% rental growth in 2025 due to 85% occupancy and lifestyle demand. Short-term rentals yield 8–10%.
Freehold Benefits: 100% freehold ownership via DLD. Enables global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 36K–120K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 9K–30K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 6.75K–27K/year). Double tax treaties minimize foreign tax liabilities.
Sustainability Features: Smart automation, eco-friendly designs, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 1.8M apartment to AED 1.91M–1.94M). 85% occupancy due to luxury appeal and investor visa eligibility (AED 750K+). Tax savings (AED 36K–150K) via free zone attract Indian and Russian investors.

6. District One Residences

Project Details: A premium waterfront community by Nakheel in Mohammed Bin Rashid City (MBR City), offering 1–3 bedroom apartments and villas (AED 1.9M–10M, 800–4,000 sqft) with Crystal Lagoon access, green spaces, and luxury amenities. Handover Q2 2025. Average price: AED 2,300–2,800 psf. 10 minutes to Downtown Dubai.
Rental Yields: 7–10% (1-bed: AED 80K–120K/year; villas: AED 300K–500K/year), with 8% rental growth in 2025 due to 90% occupancy and tourism appeal. Short-term rentals yield 8–11%.
Freehold Benefits: 100% freehold ownership via DLD. Supports global resale and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 38K–200K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 9.5K–50K/year). Meydan Free Zone offers 0% corporate tax for QFZP entities. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 7.2K–45K/year). Double tax treaties enhance tax efficiency.
Sustainability Features: LEED-certified, renewable energy systems, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 7–9% appreciation by 2026 (e.g., AED 1.9M apartment to AED 2.03M–2.07M). 90% occupancy due to waterfront appeal and Golden Visa eligibility (AED 2M+). Tax savings (AED 38K–250K) via free zone attract Russian and UK investors.

Market Trends and Outlook for 2025

Yields and Appreciation: Meydan City’s projects offer 7–10% ROI (8–11% for short-term rentals) and 6–9% appreciation, driven by AED 458B in UAE transactions and 18% growth in 2024. Rentals grew 7–8%, with 85–90% occupancy due to tourism (25M visitors in Dubai) and expat demand (85% of population). Average prices: AED 1,900–2,800 psf.
Tax Environment: Zero personal income, capital gains, and property taxes. 2% RETT exemptions (AED 24K–300K) save AED 24K–375K. 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 6K–75K/year). 9% corporate tax on mainland profits above AED 375K; Meydan Free Zone offers 0% corporate tax for QFZP entities with qualifying income (non-mainland revenue <5% or AED 5M). SBR exempts SMEs (revenue <AED 3M) until 2026. De-enveloping saves 9% on rental profits (AED 5.4K–54K/year). DMTT (15%), effective January 2025, applies to MNEs with revenues over €750M. Double tax treaties with 138 countries enhance tax efficiency.
Infrastructure Impact: Dubai Metro, Sheikh Zayed Road, and Meydan Racecourse proximity boost values by 10–15%. Access to Business Bay and Downtown Dubai drives rentals (AED 60K–600K/year).
Investor Drivers: Limited supply (2,000 units by 2027), investor visas (AED 750K+), and Golden Visa (AED 2M+) fuel 80% expat demand. Sustainability (LEED, smart tech) aligns with Dubai 2040 Urban Master Plan.
Risks: Oversupply (2,000 units by 2027) and AML compliance costs (AED 5K–15K) pose a 5–7% correction risk in H2 2025. Mitigated by 85–90% absorption, DLD escrow protections, and developer credibility (Azizi, Sobha, Nakheel). Indian investors face FEMA/PMLA scrutiny for non-compliant payments (e.g., cryptocurrency), risking 120% tax penalties.
Regulatory Framework: DLD and RERA ensure transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2026). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims. AML compliance requires KYC and source-of-funds verification via authorized banking channels (LRS limit: $250,000/year).

Smart Tax Planning Strategies

Personal Ownership: Hold properties personally to avoid 9% corporate tax on rental income, saving AED 5.4K–54K/year via de-enveloping. Ideal for individual investors with rental revenues below AED 3M.
Free Zone Entities: Register entities in Meydan Free Zone to benefit from 0% corporate tax for QFZP status, provided non-mainland revenue is <5% or AED 5M. Suitable for investors leasing to international tenants or managing portfolios.
SBR Utilization: SMEs with revenues below AED 3M can leverage SBR to avoid 9% corporate tax until 2026, maximizing returns for small-scale investors.
Double Tax Treaties: Leverage UAE’s 138 double tax treaties (e.g., India, UK, Russia) to claim deductions in residence countries, reducing foreign tax liabilities on rental income or capital gains.
VAT Recovery: Register with UAE FTA to recover 5% VAT on off-plan purchases (AED 6K–75K/year), enhancing cash flow for investors.
Compliance: Engage advisors like Meydan Free Zone (info@meydanfz.ae) or Spectrum Accounts (info@spectrumaccounts.com) to ensure AML compliance and optimize tax structures. Use authorized banking channels to avoid FEMA/PMLA penalties for Indian investors.

Investment Strategy

Diversification: Invest in Azizi Riviera Azure (AED 1.2M–3.5M, 7–9% ROI) or Azizi Riviera Belle (AED 1.3M–3.8M, 7–9% ROI) for affordability, Meydan Avenue (AED 1.5M–5M, 7–9% ROI) or Sobha One (AED 1.8M–6M, 7–9% ROI) for mid-range returns, or The 100 by Sobha (AED 8M–15M, 7–8% ROI) and District One Residences (AED 1.9M–10M, 7–10% ROI) for luxury and high-net-worth appeal.
Entry Points: Off-plan units with 5–10% down payments or 1% monthly plans offer flexibility and RETT exemptions (AED 24K–300K). Early investment maximizes appreciation as infrastructure matures (e.g., Meydan Racecourse, metro expansions).
Process: Verify freehold status via DLD portals. Pay 2% RETT (unless exempt) and 4% DLD transfer fee (AED 6K–60K). Use platforms like PropertyFinder.ae, Bayut.com, or Metropolitan.realestate. Required documents: passport copy, proof of funds (via authorized banking channels for FEMA/PMLA compliance), no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Meydan City’s six residential projects Azizi Riviera Azure, Azizi Riviera Belle, The 100 by Sobha, Meydan Avenue, Sobha One, and District One Residences offer 7–10% ROI and 6–9% appreciation, backed by AED 458B in UAE transactions and 18% growth in 2024.

Freehold laws since 2002 enable global ownership, while tax reforms zero personal income, capital gains, and property taxes, 2% RETT exemptions (AED 24K–300K), and 5% VAT recovery (AED 6K–75K/year) maximize returns. Meydan Free Zone offers 0% corporate tax for QFZP entities, and SBR exempts SMEs (revenue <AED 3M) until 2026. De-enveloping saves 9% on rental profits (AED 5.4K–54K/year). The DMTT (15%), effective January 2025, affects only large MNEs.

Sustainability features (LEED, smart tech) align with Dubai 2040 Urban Master Plan. Despite a 5–7% correction risk from oversupply, 85–90% absorption, DLD escrow protections, and infrastructure ensure stability. With prices from AED 1.2M–15M and visa incentives, these projects attract Indian, UK, and Russian investors. meydan city