The new fiscal measures of the EAU: a golden age for investment funds and limited companies?
The EAU have once again raised the bar for friendly jurisdictions with investors. With the introduction of specific corporate fiscal reforms, the country is making a clear statement: it intends to continue being a first level destination for global capital. In the heart of these changes there are two key structures:Qualified Investment Funds (Qifs) and Limited associations (LPS)—Dis of which they are now a special recurring treatment under the updated regulations.
These measures are not only policy improvements: they are part of a broader strategy to boost economic diversity, stimulate foreign direct investment and position the EAU as a main center for asset administrators, risk capital and private capital companies.
Let’s explore what is changing and why it matters.
The rise of the investment fund qualifies (QIF)
According to the new fiscal framework, investment funds comply with specific criteria can request Exemption from the EAU Corporate Tax. To qualify, a fund must be properly regulated, administered by professionals and structured to reflect the diversity of the property, which means that it cannot be strictly controlled by a single individual or group.
The EAU Government has also introduced asset -based criteria, ensuring that funds participated mainly in real estate activity do not exploit these structured exemptions such as Reit (real estate investment trusts). If real estate holdings from a fund exceed a certain threshold, a part of their income can become taxable, which provides greater transparency and justice to the system.
It is important to note that the new rules also sacrifice flexibility. If a fund does not temporarily reach the property diversity requirement, it can still maintain its exempt state provided that the violation is limited in time and scope. This approach reflects a pragmatic understanding of how investment structures operate in the real world.
Limited associations: now transparent taxes
In parallel, the EAU are aligning with international best practices when granting Transparent Tax State to eligible limited associations. This means that society itself does not pay corporate taxes; On the other hand, fiscal responsibility flows to individual partners based on their part of the income and their own fiscal residence.
This is a significant change. Fiscal transparency has long been the global gold standard for the structures used in private capital, real estate development and cross -border investment vehicles. By adopting this model, the EAU not only encourage the formation of new associations within their borders, but also facilitates that global investors operate through EAU -based structures.
A strategic movement with global impact
These reforms reflect a broader vision. The EAU are actively creating a fiscal environment that supports investment, entrepreneurship and innovation, with the commitment of regulatory integrity. By offering clarity about fiscal treatment, simplifying compliance and building the confidence of investors, the country is separated from many traditional financial centers.
For fund administrators, family and institutional investors, this means opportunity. A well structured Qif or LP can serve as an efficient, compatible and optimized vehicle for regional or international investments. And with the regulators increasingly hooked with the private sector, the path to the approach has never determined more collaborative.
What follows?
While incentives are attractive, these structures are not of a single size. Each option comes with its own criteria chosen, obligations of reports and strategic considerations. Professional orientation is essential to ensure that the configuration meets the general requirements and business objectives of the business.
As the EAU advance with their long -term vision for economic resilience and global competitiveness, the message is clear: this is a jurisdiction that rewards those who invest intelligently, strategically structure and play according to the rules.
Do you need support to navigate the new landscape? Our team in Bizzmosis Group It offers personalized legal and structural advice to help you take advantage of the EUA’s latest regulations for their benefit.
📩 Get in touch: hello@bizzmosis.com | ☎️ +971 52 979 8169
This article is written by Marco Marazzi, Legal Advisor of Solutions Business or Bizzmosis Group
