What is the most suitable tax structure for an Italian investor purchasing real estate in the UAE - natural person, company or trust?
Should I purchase as a natural person, or is it appropriate to set up a company or trust for real estate investment in the UAE?
What tax and operational implications do I need to assess to choose the best structure?
Disadvantages and limitations of investing as a natural person
Buying a property in the UAE as a natural person is the simplest and most direct route: the investor enters the market under his or her own name, takes ownership directly, and can benefit from a clear approach. This model has the advantage of transparency and simplicity.
However, there are several tax implications to consider for an Italian investor operating as a natural person: income generated abroad (rental, capital gain) must be declared in Italy if one is a tax resident, and possible taxes (IVIE, RW panel) must be handled.
In addition, asset protection may be more limited if the investment is in the direct name of the individual: any liabilities, disputes or risks arising from the property fall directly on his or her assets.
Why consider setting up a company for real estate investment in the UAE
A company (local, offshore, or international) can offer structure advantages: asset isolation, potential tax optimization, greater flexibility in managing the property (e.g., renting, divestment, reinvestment).
In the UAE context, setting up a company to purchase the property can allow for separation of the investment from personal assets, facilitate management of multiple properties, and prepare for the "scale" of the real estate business.
The following must be carefully evaluated, however: the costs of setting up and maintaining the company, regulatory compliance in Italy (reporting requirements, transparency, taxes), and relationships with the UAE jurisdiction. The corporate structure must be consistent with the long-term vision and ethical values you pursue.
When a trust or estate vehicle may be useful for investing in the UAE
A trust (or other estate vehicle) may be chosen by investors who want to plan for asset protection, succession, long-term family management, and international tax optimization. In a UAE real estate context, a trust can help manage multi-generational estates, define who wins and how, and maintain consistency with family values.
However, setting up a trust requires specialized advice, higher costs, transparency, and compliance with international regulations (anti-money laundering, foreign taxation). It is a choice to be considered if the real estate investment is part of a larger project, and not just "buying a property."
Why to rely on REMA Living Real Estate to choose the tax structure of your investment
In REMA Living Real Estate we accompany you not only in the choice of the property, but also in the ideal tax structure of your project: we analyze together your profile (age, family situation, presence in Italy, time horizon), we assess the implications of buying as an individual, company or trust, we collaborate with Italian and local consultants to guarantee you a solution consistent with the values, serenity and transparency you desire. Our goal is for your investment to become a piece of your life and not just a transaction.
A practical tip: Align the tax structure with the vision, values and duration of the investment
A piece of common sense advice: before choosing the tax structure, get clarity on your investment horizon, the level of involvement you want, the degree of asset protection you feel is necessary. If the project is "just a rental property," perhaps the individual is fine; if you want multiple properties, a family inheritance, a multi-year vision-then corporations or trusts may be more consistent. And finally, don't neglect the advice side: choose reputable professionals, assess costs and benefits, and keep the transp
