Free Zone SPV
A free zone SPV is a special purpose vehicle established in a UAE free zone specifically to hold property assets, combining tax efficiency with legal segregation.
| SPV Structure | Configuration |
| Entity type | DIFC, ADGM, or other free zone LLC |
| Sole purpose | Hold specific property or portfolio |
| Shareholders | Investors or parent holding company |
| Governance | Board of directors or managers |
| Tax status | 0% corporate tax if qualifying income |
| Reporting | Annual financial statements required |
| Advantages | Benefit |
| Limited liability | Protects shareholder personal assets |
| Tax efficiency | 0% on qualifying real estate income |
| Succession planning | Transfer shares instead of property |
| Financing facilitation | Corporate entity easier to finance |
| Asset protection | Isolates property from other liabilities |
| Multiple owners | Clean ownership structure for partnerships |
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