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FIA Targets Undeclared Property in UAE

Posted by Osamafatehali on July 3, 2025
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FIA Cracks Down on Undeclared Property in UAE Owned by Golden Visa Holders

Islamabad, June 30, 2025 – The Federal Investigation Agency (FIA) has launched a major crackdown on Pakistani nationals holding UAE golden visas who invested at least AED 2 million in property in UAE, but failed to declare them under Pakistan’s anti-money laundering and tax laws .

📌 What’s the Issue?

  • Thousands of Pakistanis hold 10‑year UAE golden visas, granted due to substantial property investments—typically AED 2 million or more .

  • Upon arrival, their UAE golden visa cards (showing name, passport number, “Property Owner” designation, and “Self Sponsor” status) are scanned by FIA immigration systems.

  • These scans are now being cross‑checked with wealth statements and income tax declarations in Pakistan .

🏠 Undeclared Assets & Tax Evasion

  • Many golden visa holders did not report their property in UAE, nor rental income or capital gains, in Pakistani tax filings.

  • They also evaded paying the Capital Value Tax (CVT) on foreign assets.

  • These investments were often funded through informal remittances or UAE bank accounts opened using residency ID, complicating financial tracking under the Automatic Exchange of Information (AEOI) treaty.

🤝 Legal & Tax Treaty Context

  • A tax treaty between Pakistan and the UAE permits data exchange. However, the UAE has reportedly not provided financial details related to these golden visa holders .

  • Since the UAE residency permit, not the Pakistani passport, is used to open local bank accounts, this impedes tax authorities’ ability to trace transactions .

👥 FIA’s Action Plan

  1. Data Matching – Visa scan data matched against domestic wealth and income statements.

  2. Notices Issued – Individuals with undeclared foreign assets are being issued notices and invited for audits.

  3. Tax Recovery – FIA aims to recover unpaid CVT on unreported property in UAE, along with any due rental income or capital gains tax.

📝 Expert Advice

Tax professionals warn that Pakistan’s tax laws now have no statute of limitations on undeclared foreign assets. They stress:

  • Declare all property in UAE and overseas income promptly.

  • Stick to legal channels for foreign investments.

  • Use proper tax planning tools to avoid penalties and legal scrutiny.

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