Arjan Real Estate: 6 Property Launches With Corporate Tax Flexibility in 2025

Arjan, a vibrant mixed-use community in Al Barsha South 3, Dubai, is a freehold development within Dubailand, launched in 2006. Situated at the junction of Sheikh Mohammed Bin Zayed Road (E311) and Umm Suqeim Road (D63), it offers proximity to Dubai Miracle Garden and Butterfly Park, with drive times of 21 minutes to Dubai Mall and 30 minutes to Al Maktoum International Airport.

Dubai’s tax-free environment no personal income tax, capital gains tax, or annual property taxes ensures investors retain 100% of rental income and resale profits, unlike U.S. markets where taxes reduce returns by 15-30%. The UAE dirham’s peg to the U.S. dollar eliminates currency risk, and the Golden Visa, offering 10-year residency for investments of AED 2 million ($545,000) or AED 1.5 million ($408,000) for green projects, enhances appeal.

In 2025, Dubai’s real estate market thrives, with H1 transactions reaching AED 326.7 billion ($89 billion) across 91,897 sales, up 23% year-on-year, per Espace Real Estate. Arjan’s properties yield 6-9%, per goldenbee.estate, driven by affordable pricing and infrastructure like the Metro Blue Line. As a non-free zone, Arjan properties are subject to 9% UAE corporate tax for entities, but strategic structuring offers flexibility, per Federal Decree-Law No. 47 of 2022. This article highlights six property launches in Arjan for 2025, leveraging corporate tax flexibility for U.S. investors.

1. Samana Retail Park by Samana Developers

Samana Retail Park, a $41 million retail and residential project, offers commercial spaces and apartments (AED 1.2 million-$2.5 million, $327,000-$680,000, 7-9% yields), with handover in Q1 2027. Initial costs include a 4% DLD fee ($13,080-$27,200) and 2% broker fee ($6,540-$13,600), totaling $19,620-$40,800.

Tax Flexibility: Small business relief offers 0% corporate tax for mainland entities with revenues up to AED 3 million ($816,000), per Ministerial Decision No. 73 of 2023, saving $2,065-$4,896 on $22,960-$54,400 rental income. U.S. investors deduct depreciation ($11,891-$24,727) and management fees ($1,837-$4,352), saving $2,746-$11,149 at 20-37% tax rates. Annual tax savings ($5,811-$16,045) often offset initial costs, supporting tax-free returns.

Investment Strategy: Use a mainland entity for small business relief and verify Samana’s escrow compliance under the 2025 Oqood system to secure tax benefits.

2. The Central Downtown by AQUA Properties

The Central Downtown, a residential and retail tower, offers studio to 3-bedroom apartments (AED 1 million-$2.2 million, $272,000-$599,000, 7-10% yields), with handover in Q2 2026. Initial costs include a 4% DLD fee ($10,880-$23,960) and 2% broker fee ($5,440-$11,980), totaling $16,320-$35,940.

Tax Flexibility: Zero-rated VAT on first residential sales saves $13,600-$29,950, per Federal Decree-Law No. 8 of 2017. Short-term rentals (e.g., Airbnb) registered as residential are VAT-exempt, saving $1,904-$3,596 on $38,080-$71,880 rental income. U.S. investors deduct depreciation ($9,891-$21,782) and management fees ($3,046-$5,750), saving $2,587-$10,106 at 20-37% tax rates. Annual tax savings ($17,491-$43,652) exceed initial costs.

Investment Strategy: Target short-term rental units for VAT exemptions, partnering with RERA-registered agents to optimize occupancy near Dubai Miracle Garden.

3. V Tower by Vincitore Realty

V Tower, a luxury residential project, offers 1-3 bedroom apartments (AED 1.5 million-$3 million, $408,000-$816,000, 6-8% yields), with handover in Q3 2025. Initial costs include a 4% DLD fee ($16,320-$32,640) and 2% broker fee ($8,160-$16,320), totaling $24,480-$48,960.

Tax Flexibility: The 2025 gift transfer fee reduction to 0.125% saves $77,250 on a $2 million transfer (from $80,000), per Taylor Wessing, avoiding 9% corporate tax ($2,203-$4,410 on $24,480-$49,000 rental income). U.S. investors report transfers on IRS Form 709, avoiding penalties up to 35% ($285,600). Deduct depreciation ($14,836-$29,673), saving $2,967-$10,979 at 20-37% tax rates. Annual tax savings ($82,420-$92,639) exceed initial costs.

Investment Strategy: Restructure to individual ownership via gift transfers to avoid corporate tax, ensuring DLD compliance for tax savings.

4. Jewelz by Danube Properties

Jewelz, an affordable residential project, offers studio to 2-bedroom apartments (AED 0.85 million-$1.8 million, $231,000-$490,000, 7-9% yields), with handover in Q1 2026. Initial costs include a 4% DLD fee ($9,240-$19,600) and 2% broker fee ($4,620-$9,800), totaling $13,860-$29,400. Danube’s 1% monthly payment plan requires a 20% down payment ($46,200-$98,000).

Tax Flexibility: Zero-rated VAT on first sales saves $11,550-$24,500. Small business relief offers 0% corporate tax for mainland entities, saving $1,663-$3,528 on $18,480-$39,200 rental income. U.S. investors deduct depreciation ($8,400-$17,818) and management fees ($1,478-$3,136), saving $1,976-$7,791 at 20-37% tax rates. Annual tax savings ($15,026-$35,819) exceed initial costs.

Investment Strategy: Leverage Danube’s 1% payment plan to reduce upfront costs and use a mainland entity for corporate tax relief, targeting budget-conscious investors.

5. Oxford Terraces 2 by Iman Developers

Oxford Terraces 2 offers 1-2 bedroom apartments (AED 1.2 million-$2.5 million, $327,000-$680,000, 7-9% yields), with handover in Q4 2025. Initial costs include a 4% DLD fee ($13,080-$27,200) and 2% broker fee ($6,540-$13,600), totaling $19,620-$40,800.

Tax Flexibility: Zero-rated VAT saves $16,350-$34,000, and the 2025 Golden Visa threshold for green-certified units (AED 1.5 million) saves $3,000-$5,000 in residency costs. U.S. investors deduct depreciation ($11,891-$24,727) and maintenance ($2,500-$5,000), saving $2,878-$11,149 at 20-37% tax rates. Annual tax savings ($22,228-$50,149) exceed initial costs, supporting tax-free returns of $22,890-$61,200.

Investment Strategy: Invest in green-certified units for VAT and Golden Visa benefits, ensuring Iman’s compliance with Dubai’s sustainability standards.

6. Skyhills Residences by HRE Development

Skyhills Residences, a premium residential project, offers 1-3 bedroom apartments (AED 1.6 million-$3.2 million, $435,000-$871,000, 6-8% yields), with handover in Q2 2026. Initial costs include a 4% DLD fee ($17,400-$34,840) and 2% broker fee ($8,700-$17,420), totaling $26,100-$52,260.

Tax Flexibility: Zero-rated VAT saves $21,750-$43,550. Converting commercial portions to residential allows VAT recovery ($3,480-$6,970), per dubailand.gov.ae. U.S. investors deduct depreciation ($15,818-$31,745) and conversion costs ($10,000-$20,000), saving $5,163-$19,279 at 20-37% tax rates. Annual tax savings ($30,393-$69,799) exceed initial costs, supporting tax-free returns of $26,100-$69,680.

Investment Strategy: Convert commercial spaces to residential for VAT recovery, targeting properties near Arjan’s retail hubs for high rental demand.

U.S. Tax Compliance Considerations

Arjan’s tax-free market outperforms U.S. cities like New York (2-4% yields). A $490,000 property yielding 8% generates $39,200 tax-free annually, versus $27,440-$32,536 after U.S. taxes. Report rental income on Schedule E, deducting depreciation ($17,818), maintenance ($2,500-$5,000), management fees ($3,136-$4,704), and mortgage interest ($19,600 for a $490,000 loan at 4%).

Foreign assets over $50,000 (single filers) or $100,000 (joint filers) require Form 8938, and accounts over $10,000 need an FBAR, with non-compliance risking penalties up to $100,000. The 4% DLD fee ($19,600) isn’t deductible. Consult a tax professional to optimize deductions.

Risks and Mitigation Strategies

Dubai’s market is robust, with AED 761 billion in 2024 transactions and a projected 5-8% price increase in 2025, per fäm Properties. Arjan risks include oversupply (182,000 units by 2026), off-plan delays, and global economic volatility, per gulfnews.com. Mitigate by selecting developers like Samana, AQUA, Vincitore, Danube, Iman, or HRE, verifying escrow compliance under the 2025 Oqood system, and targeting properties near Dubai Miracle Garden or Sheikh Mohammed Bin Zayed Road for high demand. Confirm VAT exemptions and proof of funds compliance to avoid fines up to AED 500,000.

Why Arjan in 2025?

Dubai’s Economic Agenda D33 and 25 million projected tourists in 2025 drive demand in Arjan, with off-plan sales up 30% in 2024 to AED 334.1 billion, per fäm Properties. Yields of 6-9% and zero personal taxes outpace global hubs like London (3-5%) or Singapore (3-5%), per CBRE’s 2024 Middle East Real Estate Market Outlook.

These six launches Samana Retail Park, The Central Downtown, V Tower, Jewelz, Oxford Terraces 2, and Skyhills Residences offer corporate tax flexibility through small business relief, zero-rated VAT, VAT-exempt rentals, gift transfer reductions, Golden Visa savings, and VAT recovery on conversions.

In conclusion, Arjan’s 2025 real estate market provides U.S. investors with affordable, tax-efficient opportunities through UAE and IRS strategies. By leveraging corporate tax flexibility, partnering with reputable developers, and ensuring compliance, investors can maximize returns in this dynamic community. arjan

read more: Dubai Design District: 5 Real Estate Investments With VAT Exemptions in 2025