If bustling Dubai is more to your taste for retirement or a holiday home, you'll be pleased to learn it's not excessively expensive to qualify for residency there. The emirate offers visas to foreign nationals who invest a minimum $272,000 (nearly Dh1 million) in property.

The reason why this is interesting for many is because there has been a bit of bustle recently surrounding places that have been looking to offer tax residencies at a lower cost in the aftermath of COVID-19.

But what is 'tax residency'?

Israel and the United Arab Emirates reached a landmark accord sealed by President Trump on Thursday that could presage a broader realignment in the region as the two agreed to “full normalization of relations” in exchange for Israel suspending annexation of occupied West Bank territory.

Since there is a lot of questions are coming, while the released official information touches the subject just in very general, we requested a clarification directly from the DMCC administration. Below we provide the full response of the DMCC representative to our request.

As known, the maximum validity period of the UAE resident visa has been limited by two or three years depending on local regulations of Free Trade Zones or the UAE authority's rules for the mainland. As soon as it expires you need to re-apply to extend its validity, along with making proper payment.

For instance, many consider this to be synonyms for an offshore company or just ”offshore”. Some might even deem this to be a misspelling of the good ol’ "offshore".

Whilst the closest approximation to its core meaning have got those who think this is a term for every local company that is registered on the mainland of a given state and conducts activities in accordance with the state’s general economic regulations.

In order not to be blacklisted by the EU for non-compliance with the requirements of the BEPS Action Plan, the UAE was forced to adopt the Normative Act on Economic Presence. Act #31 was taken on April 30, 2019.

So, what are the main requirements for Economic Substance?

First, let us define to whom it may concern.

The new Act applies to all business legal structures in the UAE, which carry out income-generating activities through one of the Relevant Activities, listed as follows: