By Swann Collins, investor and consultant in international affairs – Eurasia Business News, August 26, 2025. Article no. 1741
Wealthy Russians have increasingly been active in “packing” or channeling their foreign assets into private funds and real estate investments in Dubai. This trend has accelerated notably after the geopolitical tensions and sanctions following the start of the war in Ukraine in February 2022 and the freezing of Russian bank accounts in dollars.
Dubai is particularly attractive to Russian investors for several reasons:
The registration process for private funds and real estate investments in Dubai is relatively simple, supported by a legal environment that lawyers say does not pose significant difficulties.
Dubai offers a politically neutral and economically stable environment, which appeals to Russians seeking to safeguard their wealth amid global uncertainties.
The UAE has favorable tax policies with zero personal income tax, no capital gains tax, and no property inheritance tax, which makes it a tax-efficient jurisdiction for asset protection and growth.
There is a booming demand from wealthy Russians for luxury real estate, including villas, penthouses, and branded residences, especially in high-end areas like Palm Jumeirah, Dubai Marina, and Downtown Dubai.
Many Russian investors use these assets not only for investment purposes but also to obtain residency visas through real estate investment schemes. The Russian oligarch Pavel Durov, the founder of Telegram messenger, regularly visits Dubai. His net worth is estimated approximately at $17.1 billion in August 2025.
Moreover, cash transactions dominate among Russian buyers, which expedites property purchases and fund structuring.
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In addition, Russians can easily buy gold in Dubai. Buying gold in Dubai is generally considered easy and attractive for buyers. The gold market in Dubai is well-regulated, ensuring purchases are safe and authentic. Buyers can expect to pay only the 5% Value-Added Tax (VAT) on gold purchases, without additional taxes that often apply elsewhere. The gold is priced by weight in grams, and there is commonly room for negotiation on the making charges. Buyers can find a wide range of gold products including jewelry, bars, and coins in places like the Gold Souk and Dubai Airport’s duty-free shops.
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Furthermore, Russians in Dubai benefit from a very favorable tax environment:
- There is no personal income tax in Dubai for residents or expatriates, including Russians.
- Corporate tax is set at 9% but only applies to companies with taxable profits exceeding AED 375,000 (approx. €95,000), while many Dubai free zones offer 0% corporate tax for qualifying businesses.
- There is no capital gains tax or withholding tax on dividends, interest, and royalties, which is attractive for investors.
- A new double taxation treaty between Russia and the UAE came into force in July 2025, which generally sets a 10% tax rate on passive incomes like dividends and interest, reducing the tax burden for cross-border income.
- Property purchases incur a transfer fee of 4%, but there is no property or inheritance tax.
- VAT is 5% on goods and services, but it does not affect income or gains from investments.
These factors combine to make Dubai a preferred destination for wealthy Russians to relocate, invest, and “pack” their assets into private funds and real estate without facing the regulatory and tax challenges present in other countries.
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