I’m not saying anything new, as the tax burden continues to rise yearly. This, combined with other factors such as increasing insecurity, geopolitical turmoil, and economic turmoil, makes many an empty-squeezed taxpayer dream of a place without taxes. If it is still safe there and warm—sometimes a little too warm—then many start dreaming.
The United Arab Emirates, with Dubai as its main attraction, is a good six hours from Europe. And do you really pay no taxes in the UAE, and Dubai in particular?
Are there no taxes in Dubai as a tax haven?
The principle is still that there are no taxes in Dubai. That is the starting point.
Local business
Do your local business. Say you sell Italian olive oil on the local market or Belgian chocolate. At that time, you pay 9% corporate tax on your profits and charge 5% VAT on your sales.
Freezone companies
But most Western taxpayers will set up a company in one of the 46 free zones. So, suppose you are an IT consultant or a marketer; then you can live in the UAE and work through a so-called free zone company. So if your clients are outside the UAE, e.g., in Europe or the US, you still pay 0% of your income! There is also no VAT that you then have to charge on your invoice.
Furthermore, there are hardly any taxes, e.g., no gift or inheritance taxes, and very low traffic taxes. The tax rate on rental income in Dubai is 5%. You certainly won’t be taxed “to death” there.
Can I move to Dubai (UAE)?
Of course, you have to deregister from your country, and then you are free. In Dubai or the UAE in general, you basically have two options for living there.
You can set up a ‘free zone company’ and apply for residency. Depending on the free zone and the size of the office, you are entitled to one or more visas. You still have to undergo an AIDS test and a TB test. If these are negative, you are “in”. Again, depending on the freezone, you must repeat this procedure every 2 or 3 years. Your residency will remain valid if, every 180 days, you are there for one or more days. If you don’t do this, you can start back from scratch.
Another option is to invest in real estate. Some (not all) real estate projects then also entitle you to residency. You need to invest over 200,000 EUR. You can also have a visa for 10 years (golden visa), then you have to invest more than 2 million AED, and if you are over 55, you can go for a ‘retirement’ visa for 5 years if you invest more than 1 million AED
Is Dubai a tax haven?
It is possible to live tax-free in Dubai/AUE. There are several ways to achieve this goal, each with a different price tag. Each candidate has a separate story, so get professional guidance.
Contact us today at info@dehoon-dhp.com
Did you find this article interesting? Then, please read our blog about going through life tax-free as a digital nomad or read our blog about Bulgaria as a tax haven.
