Crackdown underway: Pakistan’s FIA identifies investors with AED 2m real estate holdings in UAE

ISLAMABAD: The resident Pakistanis who have made a qualifying investment of at least 2.0 million AED in real estate in Dubai/ UAE have been identified from the immigration data maintained by the FIA at the airports, and a major crackdown under the income tax laws and anti-money laundering regulations is under way.

As per sources, thousands of Pakistani residents are holding 10-year golden visas (Residence/ Iqama) of the UAE issued due to investment of at least AED 2.0 million. These Pakistanis use the Golden Residence card at the Pakistan immigration counters while travelling to the UAE, which is scanned and saved in the FIA Immigration portal.

The residence card (Iqama) contains the following information: Pakistani passport number and name; Profession – Property owner; Sponsor – Self Sponsor; and Issue date/ Expiry date – 10 years.

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From the above data, the property investor can easily be identified and it can be ascertained whether investment in UAE property has been declared in their wealth statement or not.

As per sources, the majority of resident Pakistanis have neither declared this investment in UAE properties in their wealth statements nor the rental income/ capital gain in shown in the return of total income. Similarly, CVT on foreign assets is also not paid.

When contacted for comments, Shahid Jami, tax consultant, explained that though there is a tax treaty between Pakistan and UAE, which includes an Article for exchange of information but UAE has reportedly not provided information to Pakistani tax authorities.

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Similarly, under the Automatic Exchange of Information treaty, financial data is not provided as bank accounts are opened in UAE by using the residence permit as an identity document instead of a Pakistani passport.

Jami added that due to the aforementioned factors, there is a tendency not to declare the investment made. Similarly, for investment, the use of informal remittances is also available easily at an affordable cost.

He stated that, therefore, those taxpayers who declared foreign assets under the amnesty scheme now feel that they have made a mistake, as those who did not declare are outside the radar without any fear of being caught.

Jami explained that tax laws have become very stringent, and in respect of foreign assets, the erstwhile limitation of five years is not applicable. He advised the taxpayers not to suppress foreign assets and not to violate foreign exchange regulations.

When asked how to make lawful foreign investment and legitimate tax-free earnings, he stated that tax planning schemes within the framework of law are available, and very few compliant taxpayers are already availing those.

Copyright Business Recorder, 2025