Dubai taxes

Dubai is not only one of the most modern and safest cities in the world, but also one of the most attractive tax locations worldwide. Anyone who decides to take up residence, set up a company or invest in Dubai benefits from unique tax conditions that are hard to find in Europe.

If you want to know more about Dubai taxeslegal tax optimization, corporate structures or relocation, you’ve come to the right place. Dubai Business Consulting is the right place for you. For over 15 years, we have been advising discerning entrepreneurs, investors and decision-makers on strategic positioning in the United Arab Emirates (UAE).

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Dubai Taxes – What you need to know

1. no income tax on private individuals

One of the main reasons why so many people move to Dubai or invest there is the complete tax exemption on income. In Dubai, individuals pay no income tax on salary, dividends or capital gains.

This means:
100% of your income stays with you
No obligation to declare or report to local tax authorities
Ideal for digital nomads, entrepreneurs, investors, top earners

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2. corporate taxation – tax-free with structure

For a long time, the corporate sector in Dubai was also completely tax-free. Since June 1, 2023, however, a corporate tax rate of 9% has been introduced – albeit with numerous exceptions and structuring options.

Important points:

• Applies only to companies with an annual profit of over AED 375,000 (approx. € 95,000)

• Freezone companies with purely foreign business or business within the freezone remain tax-free, provided they meet certain conditions

• Foreign income (e.g. dividends, interest) is exempt in many cases

With the right structure, you can continue to operate almost tax-free – especially in the numerous Dubai free zones.

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3. no capital gains tax, inheritance tax or wealth tax

Dubai does not levy taxes on:

• Share gains

• Real estate sales

• Inherited or gifted assets

• Bank deposits, shareholdings or other forms of investment

Dubai is therefore an ideal place for wealthy private individuals in particular to secure their assets and plan their succession.

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4. value added tax (VAT) – only on local sales

Since 2018, the UAE has had a value added tax (VAT) of 5 %, which is only levied on the sale of goods and services within the country.

For exports, international services or cross-border digital products, 0% VAT usually applies. Here, too, we will show you how to work tax-efficiently with the right structure.

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Why Dubai is so attractive from a tax perspective

• No reporting obligation as in the EU – No automatic exchange with the tax office in your home country if you transfer your tax residence correctly

• No global taxation – In Dubai you only pay tax on income within the UAE – foreign assets remain unaffected

• International tax treaties – The UAE has concluded numerous double taxation agreements, including with Germany, Austria and Switzerland

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Living tax-free in Dubai – with a change of residence

Many of our clients decide to relocate their entire tax residence to Dubai. The advantages:

• No more global income taxable in Germany, Austria or Switzerland

• No AEOI (automatic exchange of information) if no longer resident in the EU

• No obligation to file tax returns in the UAE

• Cost of living can range from moderate to luxurious, depending on lifestyle

Important: The relocation must be correctly documented and verifiable. We will guide you through this step by step.

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Dubai Business Consulting – Your experts for Dubai taxes

As a leading boutique consultancy for discerning clients, we offer more than just tax advice. We provide strategic and holistic support for your entry into Dubai and the UAE. Our services in the area of “Dubai taxes” include

• Analysis of your tax situation in your country of origin

• Strategic planning for relocation

• Structuring your company (free zone, holding, offshore, etc.)

• Support with founding, Visa, Emirates ID and bank account

• Access to exclusive tax experts, notaries and contacts with authorities

• Asset protection, estate planning & tax-optimized investments

Our network is unique in its depth – which makes us the preferred partner of numerous entrepreneurs, family offices and private investors from Europe.

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Tax-free investing – real estate, companies, holdings

Dubai offers a variety of investment opportunities with tax advantages:

• Real estate: No tax risk on rental income or sales profits

• Company shareholdings: Tax-free dividends

• Holding structures: ideal for separating assets and operating activities

• Freelancers & digital entrepreneurs: working without corporate tax liability possible

Dubai is not a tax haven, but a modern business location with legal, stable framework conditions. With the right structure, your success remains tax-optimized in the long term.

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Conclusion: Dubai taxes – your path to a tax-free future

Dubai tax does not simply mean “no taxes” – it means freedom of organization, legal certainty and international freedom of action. Whether you want to emigrate, relocate your company or start a new investment: Dubai Business Consulting supports you with foresight and responsibility.

Avoid risks, take advantage of opportunities – with our expertise.