Taxes in Dubai.
How much is capital gains tax, trade tax or income tax?!
In Dubai, with the right company structure, you are not liable to pay tax either at the corporate level or as an individual. With your new company in Dubai, forget about terms like capital gains tax, trade tax or income tax from now on.
Yes - you have read correctly! Setting up a company in Dubai is the easiest and most cost-effective way to build up wealth tax-free and live tax-free even in 2023. If you don't have a few million lying around in your bank account to settle in Monaco ... or if you don't want to give up your current standard of living on a small island in the Caribbean: Dubai is exactly the right choice for you.
Due to the fact that in your home country the state takes away up to 50% of your income month after month, you have certainly already dealt with the topics of offshore company formation, income tax, tax paradise and "paying less taxes". Everyone who has already dealt with this topic knows that there are some countries on our planet where the tax burden can be reduced. However, there are hardly any countries to avoid taxes completely. If you take a closer look at tax-free countries, you will quickly realize that you cannot avoid the United Arab Emirates - and rightly so. The U. A. E., with a population of well over 10 million people, is the only tax-free country that simultaneously has a thriving real estate industry, a thriving local economy, and excellent flight connections. Dubai can be reached by direct flight from almost anywhere in the world.
Our customers agree:
The United Arab Emirates is the only country where you still find the golden standard of 0% income tax, as well as 0% business tax, when structuring with a "Freezone Company" - without having to give up the previous standard of living.
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All your tax benefits at a glance.
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Please fill out the form and we will get back to you as soon as possible to schedule a free initial consultation.
Taxes in Dubai explained in detail.
Income tax.
- 0% - income tax, the U.A.E. does not levy this form of tax.
- All your income earned within the U.A.E. is exempt from taxation
- Salaries, dividends and investments of any kind remain 100% with you
- Financial freedom with the goal of a free and self-determined life can thus be achieved much faster.
All of your income is therefore exempt from tax.
This applies to salaries, dividend distributions and investments of any kind - whether you invest in traditionally conservative assets such as government bonds and real estate, or whether you want to increase your wealth with cryptocurrencies - there are no tax charges whatsoever.
Thus, you can achieve your goal of a free and self-determined life much faster.
Value added tax.
Since 01.01.2018 5% VAT is charged on goods and services in the domestic market! For you with international business it remains at 0%!
Since 01.01.2018, 5% VAT is levied on goods and services. However, this only affects those that are provided in the local market of the United Arab Emirates.
International business such as trading and consulting, which is provided outside the United Arab Emirates and is conducted through a "Freezone Company", is exempt from VAT. Thus, you do not have to pay or account for VAT.
Corporate tax.
As of 01.06.2023, 9% company tax will be due on local income in the "Mainland" of the U.A.E.. Again, for you with international business, it will remain at 0%!
With a "Freezone Company" you will not pay any company tax on your international business, which takes place and is performed outside the U.A.E., even after 01.06.2023.
When structuring your international business with a "Freezone Company", you can still benefit from the 0% company tax in the United Arab Emirates.
Only if your company generates local income within the United Arab Emirates, the so-called "Mainland", 9% company tax must be paid on this income. Local companies, so called "Mainland companies", will have to pay 9% company tax on their local and international income without exception from 01.06.2023.
Due to this fact, we strongly advise against doing your international business outside the U. A. E. with a "Mainland Company".
We at DLS Dubai can still ensure that you, with a company properly structured by us, will receive 0% company tax.
Frequently asked questions.
Thanks to the tax-free residency through the Dubai Residence Visa, which you receive in the course of setting up your company in Dubai, from now on you will not only save taxes on a corporate level, but also on a private level - completely legally.
The double taxation agreement with your home country prevents double taxation of your income. Thanks to a double taxation agreement between the UAE and, for example, Austria and Switzerland, income from the UAE that has already been "taxed" at 0% can be transferred to the home country without being taxed again.
DLS Dubai works with international tax advisors in almost all western countries such as Canada, Spain, the Netherlands and Portugal to provide you with tax advice not only on Dubai location.
Basically, taxes are in conflict with Arab culture, and tax exemption is based on a millennium-long tradition in the Middle East. Furthermore, the countries in the Middle East are mainly financed by income in the financial and oil sector, so banks and oil companies, among others, pay up to 50% tax. Private and especially small businesses remain tax-free until the distant future, and there is absolutely no thought of an income tax, as the locals would turn against the current government.