Ras Al Khaimah Real Estate: 6 Urban Projects Aligned With New Tax Incentives in 2025

REAL ESTATE1 month ago

Ras Al Khaimah (RAK)’s AED 12B real estate market in 2024 (25% YoY growth) offers attractive investment opportunities through six urban projects Mira Coral Bay, The Beach Residences, Al Marjan Island (Wynn Resort), Hayat Island, Mina Al Arab, and RAK Central.

These projects provide apartments, villas, and townhouses (AED 500K–15M) with 6–8% ROI and 6–10% appreciation by 2026, driven by infrastructure like the RAK Vision 2030 road network and tourism growth (1.5M visitors in 2024). Freehold laws since 2010 enable 100% foreign ownership in designated zones, attracting expats (60% from UK, Russia, India).

Tax policies include zero personal income, capital gains, or property taxes, with 2% Real Estate Transaction Tax (RETT) exemptions for off-plan purchases (saving AED 10K–300K). A 9% corporate tax on mainland profits above AED 375K applies, but free zones like RAK Economic Zone (RAKEZ) offer 0% corporate tax for Qualified Free Zone Persons (QFZP).

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

1. Mira Coral Bay

Project Details: Developed by Marjan and Mira Developments in Al Mairid, this waterfront project offers apartments, villas, and townhouses (AED 800K–5M, 400–4,000 sqft) with smart tech, yacht clubs, and 10 premium restaurants. Handover Q2 2028. Average price: AED 800–1,500 psf. 30 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 40K–150K/year; villas: AED 100K–200K/year), with 8% rental growth in 2025 due to 80% occupancy and tourism demand. Short-term rentals yield 7–9%.
Freehold Benefits: 100% freehold ownership via RAK Properties. Enables global resale, leasing, and inheritance.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 16K–100K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 4K–25K/year). RAKEZ 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 3.6K–18K/year). RAKEZ SPVs ensure tax transparency. Double tax treaties with 138 countries (e.g., India, UK) minimize foreign tax liabilities.
Sustainability Features: Coral-inspired eco-designs, energy-efficient systems, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–10% appreciation by 2026 (e.g., AED 800K apartment to AED 848K–880K). 80% occupancy due to coastal appeal and Golden Visa eligibility (AED 2M+). Tax savings (AED 16K–125K) via RAKEZ attract UK and Russian investors.

2. The Beach Residences

Project Details: Developed by Al Hamra on Al Marjan Island, this luxury project offers 1–4 bedroom apartments and townhouses (AED 1.2M–5M, 600–3,000 sqft) with beachfront access, smart tech, and amenities (pools, retail). Handover Q4 2026. Average price: AED 1,500–2,000 psf. 25 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 60K–200K/year; townhouses: AED 150K–250K/year), with 8% rental growth in 2025 due to 85% occupancy and tourism (1.5M visitors in 2024).
Freehold Benefits: 100% freehold ownership via RAK Properties. 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 24K–100K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 6K–25K/year). RAKEZ 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 5.4K–22.5K/year). RAKEZ SPVs ensure tax transparency. Double tax treaties enhance tax efficiency.
Sustainability Features: Eco-friendly materials, smart home systems, aligning with RAK Vision 2030 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 luxury branding and Golden Visa eligibility (AED 2M+). Tax savings (AED 24K–125K) via RAKEZ attract Russian and Indian investors.

3. Al Marjan Island (Wynn Resort)

Project Details: Developed by Marjan, this mixed-use project includes branded residences and hotel apartments (AED 1.5M–15M, 600–5,000 sqft) with smart tech, gaming facilities, and beachfront views. Handover Q1 2027. Average price: AED 2,000–3,000 psf. 25 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 80K–300K/year; villas: AED 200K–500K/year), with 10% rental growth in 2025 due to 90% pre-leased occupancy and Wynn Resort’s global appeal.
Freehold Benefits: 100% freehold ownership via RAK Properties. 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 30K–300K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 7.5K–75K/year). RAKEZ 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). RAKEZ SPVs ensure tax transparency. Double tax treaties minimize foreign tax liabilities.
Sustainability Features: LEED-certified designs, energy-efficient systems, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–10% appreciation by 2026 (e.g., AED 1.5M apartment to AED 1.59M–1.65M). 90% occupancy due to gaming and tourism appeal. Tax savings (AED 30K–375K) via RAKEZ attract Chinese and UK investors.

4. Hayat Island

Project Details: Developed by RAK Properties in Mina Al Arab, this waterfront project offers apartments and townhouses (AED 700K–3M, 400–2,500 sqft) with smart tech, lagoons, and amenities (retail, parks). Handover Q3 2026. Average price: AED 1,000–1,500 psf. 30 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 40K–120K/year; townhouses: AED 100K–200K/year), with 8% rental growth in 2025 due to 80% occupancy and family-friendly appeal.
Freehold Benefits: 100% freehold ownership via RAK Properties. 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 14K–60K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 3.5K–15K/year). RAKEZ 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 3.6K–18K/year). RAKEZ SPVs ensure tax transparency. Double tax treaties enhance tax efficiency.
Sustainability Features: Green landscaping, smart home systems, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 700K apartment to AED 742K–756K). 80% occupancy due to affordability and investor visa eligibility (AED 750K+). Tax savings (AED 14K–75K) via RAKEZ attract Indian and GCC investors.

5. Mina Al Arab

Project Details: Developed by RAK Properties, this eco-friendly community offers apartments, villas, and townhouses (AED 1M–5M, 500–3,500 sqft) with smart tech, beachfront access, and amenities (mangroves, retail). Handover ongoing through 2025. Average price: AED 1,200–1,500 psf. 25 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 50K–150K/year; villas: AED 120K–250K/year), with 8% rental growth in 2025 due to 85% occupancy and eco-tourism appeal.
Freehold Benefits: 100% freehold ownership via RAK Properties. 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 20K–100K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 5K–25K/year). RAKEZ 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 4.5K–22.5K/year). RAKEZ SPVs ensure tax transparency. Double tax treaties minimize foreign tax liabilities.
Sustainability Features: Mangrove conservation, energy-efficient designs, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 1M apartment to AED 1.06M–1.08M). 85% occupancy due to eco-credentials and Golden Visa eligibility (AED 2M+). Tax savings (AED 20K–125K) via RAKEZ attract UK and Indian investors.

6. RAK Central

Project Details: Developed by Marjan, this mixed-use project offers apartments and commercial spaces (AED 500K–3M, 400–2,000 sqft) with smart tech, retail hubs, and proximity to RAK’s business district. Handover Q2 2026. Average price: AED 800–1,500 psf. 15 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 30K–120K/year), with 8% rental growth in 2025 due to 80% occupancy and business hub demand.
Freehold Benefits: 100% freehold ownership via RAK Properties. Supports global resale and leasing.
Tax Incentives and Planning: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 10K–60K savings). 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 2.5K–15K/year). RAKEZ 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 2.7K–10.8K/year). RAKEZ SPVs ensure tax transparency. Double tax treaties enhance tax efficiency.
Sustainability Features: Smart building systems, energy-efficient designs, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2026 (e.g., AED 500K apartment to AED 530K–540K). 80% occupancy due to affordability and investor visa eligibility (AED 750K+). Tax savings (AED 10K–75K) via RAKEZ attract GCC and Indian investors.

Market Trends and Outlook for 2025

Yields and Appreciation: RAK’s projects offer 6–8% ROI (7–9% for short-term rentals) and 6–10% appreciation, driven by AED 12B in 2024 transactions and 25% growth in H1 2025 (AED 800–3,000 psf). Rentals grew 8–10%, with 80–90% occupancy due to tourism (1.5M visitors in 2024) and expat demand (60% foreign transactions).
Tax Environment: Zero personal income, capital gains, and property taxes. 2% RETT exemptions (AED 10K–300K) save AED 10K–375K. 0% VAT on residential sales; 5% VAT recoverable for off-plan (AED 2.5K–75K/year). 9% corporate tax on mainland profits above AED 375K; RAKEZ offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) until 2026. De-enveloping saves 9% on rental profits (AED 2.7K–45K/year). DMTT (15%) applies to MNEs with revenues over €750M. Double tax treaties with 138 countries enhance tax efficiency.
Infrastructure Impact: RAK Vision 2030 road network, Al Marjan Island developments, and airport upgrades boost values by 10–15%. Tourism hubs (Wynn Resort, beaches) drive rentals (AED 3,000–10,000/month).
Investor Drivers: Limited supply (3,000 units by 2026), investor visas (AED 750K+), and Golden Visa (AED 2M+) fuel 60% expat demand. Smart tech and sustainability (LEED certification) enhance appeal.
Risks: Oversupply (3,000 units by 2026) and AML compliance costs (AED 5K–15K) pose a 5–8% correction risk in H2 2025. Mitigated by 80–90% absorption, RAK Properties escrow protections, and developer credibility (Marjan, RAK Properties). Indian investors face FEMA/PMLA scrutiny for non-compliant payments (e.g., cryptocurrency), risking 120% tax penalties.
Regulatory Framework: RAK Properties ensures transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2028). 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 2.7K–45K/year via de-enveloping. Ideal for individual investors with rental revenues below AED 3M.
Free Zone Entities: Register entities in RAKEZ 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 2.5K–75K/year), enhancing cash flow for investors.
Compliance: Engage advisors like Savills (middleeast@savills.com) or RAK Properties (info@rakproperties.ae) 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 RAK Central (AED 500K–3M, 6–8% ROI) or Hayat Island (AED 700K–3M, 6–8% ROI) for affordability, Mina Al Arab (AED 1M–5M, 6–8% ROI) or The Beach Residences (AED 1.2M–5M, 6–8% ROI) for mid-range returns, and Mira Coral Bay (AED 800K–5M, 6–8% ROI) or Al Marjan Island (AED 1.5M–15M, 6–8% ROI) for luxury investments.
Entry Points: Off-plan units with 5–10% down payments or 1% monthly plans offer flexibility and RETT exemptions (AED 10K–300K). Early investment maximizes appreciation as infrastructure matures (e.g., Wynn Resort).
Process: Verify freehold status via RAK Properties portals. Pay 2% RETT (unless exempt) and registration fees (AED 2K–4K). Use platforms like PropertyFinder.ae, Bayut.com, or rakproperties.ae. 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, Ras Al Khaimah’s six urban projects Mira Coral Bay, The Beach Residences, Al Marjan Island (Wynn Resort), Hayat Island, Mina Al Arab, and RAK Central offer 6–8% ROI and 6–10% appreciation, backed by AED 12B in 2024 transactions and 25% growth in H1 2025.

Freehold laws since 2010 enable global ownership, while tax policies zero personal income, capital gains, and property taxes, 2% RETT exemptions (AED 10K–300K), and 5% VAT recovery (AED 2.5K–75K/year) maximize returns. RAKEZ offers 0% corporate tax for QFZP entities, and SBR exempts SMEs (revenue <AED 3M) until 2026. De-enveloping saves 9% on rental profits (AED 2.7K–45K/year).

Sustainability features (LEED certification, smart tech) align with RAK Vision 2030. Despite a 5–8% correction risk from oversupply, 80–90% absorption, RAK Properties escrow protections, and infrastructure (road networks, tourism hubs) ensure stability. With prices from AED 500K–15M and visa incentives, these projects attract UK, Russian, and Indian investors. Ras al khaimah