Investing In Real Estate In Qatar
Qatar is an economic-forward country and aims for the diversification of its sectors. Qatar greatly encourages industrialization by creating and maintaining a conducive and friendly business environment. The country boasts of both indigenous and foreign private-owned businesses and has increased efforts to attract domestic and foreign investors in technology, communication, and particularly in the real estate sector.
Why Real Estate?
Real estate takes the top spot as one of the most lucrative long-term investments because of the predictable cash flow it offers. It is a great way to build wealth as you can generate income from different sources. Real estate values appreciate and rental income also tend to increase over time which also contributes to higher cash flow.
There is the advantage of passive income, tax advantages, and most importantly leverage. As you build equity, you have the leverage to buy more properties and grow your wealth even more. Real estate therefore poses higher return because of positive leverage.
Real estate is tangible, stable, and safe and it is no surprise that most successful investors prefer to invest in real estate.
What to consider before Investing in Real Estate
Investing in real estate is a very profitable venture only if you make smart and informed decisions. Before taking the step to invest in properties, you should consider the following;
- Location: You should consider the location of the property in respect to neighbourhood status, proximity to amenities as well as accessibility and closeness to markets.
- Property Valuation: Valuation determines the listing price, financial options, taxation, and investment outcomes.
- Real Estate Market Conditions: Evaluate the current state of the market. Find out if property prices are rising or falling. Also consider the history of marketing conditions in the area.
- Expected Return on Investment (ROI): Deteriming your expected return on investment will help you decide if it will be profitable to go ahead with the investments or not.
- Interest rate: Find out if the interest rates are increasing or decreasing.
- Real Estate Regulations and laws: Have thorough knowledge of the laws and regulations guiding real estate.
WHY INVEST IN REAL ESTATE IN QATAR?
The country’s location, rapid economic growth, and as well as it’s real estate regulations greatly benefit investments. Qatar has made investing in real estate so much easier in that;
- The Council of Ministers has outlined areas in which non-Qatari’s may use and own real estate in Qatar.
- Non-Qatari citizens will also be able to own detached units (offices and shops) in shopping malls throughout the country.
- The total number of areas that have been allocated to owning and using real estate for non-Qatari’s have been increased to 25.
- Non-Qatari citizens may own detached units in one of the designated residential compounds.
In addition, take a look at other advantages that foreign investors can leverage;
The recent regulations have allowed foreign investors to enjoy great residency benefits. Owners of property above $200,000 in value can obtain a residency permit for themselves and their family without a sponsor while owners of property above $1,000,000 in value will receive permanent residency benefits; including healthcare, education, and investment in commercial activities.
Up to 100% Foreign Ownership in all Sectors
Qatar continues to attract foreign investors from all over the world as the country allows for total foreign ownership. Your confidence and flexibility as a foreign investor are further increased as you are not restricted to only particular sectors in the country.
Full Profit Repatriation
You can send all financial assets, earnings as well as profits you make as a foreign investor back to your home country after meeting Qatar’s tax obligations.
Zero Tax on Personal income
Qatar is one of the few countries that offer the juicy benefit of zero tax on personal income.
Low Corporate tax rate and Double Taxation
The highly favorable tax conditions such as low corporate tax rates and double taxation make investments more attractive as they contribute to higher productivity and increased earnings.
Expanded Economic Zones with Tax Holidays
The development of new special economic zones encourages local talent, innovation, and foreign investments. Expansion of zones with special economic benefits and incentives such as a 20-year renewable tax holiday enhances the economy. Foreigners require a license to enjoy this 20-year renewable tax holiday.
Treaties with 60+ Countries
Qatar has continued to break International barriers and can boast of treaties with over 60 countries. This globalization has made access to foreign investors and financial institutions easier, further improving economic growth and development. Business operations are run at world-class standards, such that investments into the economic sector are highly profitable and secure.
Liberal Immigration and Employment Rules
Employment and immigration laws have been recently adjusted to greatly benefit foreigners. The country’s vision remains to provide a high standard of living for everyone living in Qatar. It has never been easier to live and work in Qatar as the government has taken measures to create a fair playing field for both citizens and non-citizens to get employment opportunities as well as run personal businesses.
Instant Access to E-Government Services
E-government is one of the many ways adopted to provide better administrative services across communities in Qatar. These e-government services are made available to all members of the public. Citizens, as well as non-citizens all, have instant access to these services, which makes it easier to register and run private businesses within the country. One of the perks of this is that you have direct access to timely and relevant information regarding the country and how they affect the smooth running of your business operations.
With diversification at the heart of Qatar’s vision for 2030 and beyond, the nation’s strong economy and evolving infrastructure present companies with a competitive platform for partnership, growth, and expansion. Qatar continues to create means to make investing more profitable and beneficial to citizens as well as foreigners. Real estate is one of the thriving investment opportunities you can venture into in this time.