Florida or Dubai: where should you invest in real estate?
There is no universal answer. Florida offers a long-established, deep market, in dollars, governed by US law, with value created over several years. Dubai offers a younger, faster market, in a currency pegged to the dollar, with no personal income tax, but more exposed to cycles. The right choice depends on your horizon, your tax residence and the rest of your wealth.
| Criterion | Florida | Dubai |
|---|---|---|
| Currency | US dollar | Dirham, pegged to the US dollar |
| Legal framework | US law and Florida state law | UAE law, Dubai Land Department and RERA |
| Access for foreigners | Open, except for nationals of seven countries designated by a 2023 law | Open in freehold areas |
| Local income tax | No state personal income tax, but US federal tax applies | No personal income tax |
| Tax on sale for a foreigner | 15% FIRPTA withholding on the price, credited against the tax due | No capital gains tax for individuals |
| Purchase costs | Closing costs, title insurance, local taxes | 4% Dubai Land Department registration fee, plus other fees |
| Recurring costs | Property taxes, insurance (rising sharply) | Service charges |
| Market pace | Deep market, long cycles | Younger market, sharper cycles |
| Our club deals | Residential buildings, 3 to 5 years, through an LLC, €100,000 ticket | Resale villas, 6 to 18 months, through an SPV, €50,000 ticket |
Note: no local tax does not mean no tax. Depending on your country of tax residence, income and gains made in Florida or Dubai may have to be reported, and sometimes taxed, at home.
How do tax, currency and legal structure differ?
In Florida, properties are often held through an LLC, and non-residents fall under US federal tax (filing, withholding on sale, possible estate tax). In Dubai, property can be held directly or through a company, with no local personal income tax or capital gains tax. In both cases, amounts are in dollars or a dollar-pegged currency, exposing a euro-based investor to currency risk.
For an investor whose wealth is in euros, both markets provide currency diversification, but not from each other: since the dirham is pegged to the dollar, a weaker dollar against the euro weighs on both at once.
For details, see our guides Investing in Florida and Buying off-plan in Dubai.
What investment horizon for Florida and for Dubai?
In Florida, a value-add operation (purchase, renovation, rent increases, sale) is generally planned over 3 to 5 years. In Dubai, renovate-and-sell operations on the resale market can be shorter, around 6 to 18 months in our club deals, while an off-plan purchase ties up capital until handover. These durations are indicative and depend on the market.
A shorter horizon does not mean lower risk: a fast market can also turn quickly.
Can you diversify between Florida and Dubai?
Yes, and that is often the point of comparing them: the two markets have different cycles, legal frameworks and operation lengths. Combining them can smooth part of each market's specific risk, but not the euro-dollar currency risk common to both. The total share allocated to foreign real estate should remain consistent with your overall wealth.
This is Groupe OPERA's approach: start from your situation (tax residence, income needs, horizon, existing assets), then decide whether one, the other, both or neither of these markets makes sense for you.