More and more entrepreneurs are emigrating to Dubai. But what advantages does Dubai actually offer, and what should be considered when relocating? Why is tax advice for Dubai so important beforehand? We clarify. Dubai is one of the leading economic metropolises in the Middle East and an important center for international trade and investment. The city is known for its advanced infrastructure and dynamic business approach, offering numerous opportunities for entrepreneurs.
Advantages of Dubai
Geographical Location of Dubai
A major advantage of Dubai for entrepreneurs is its geographical location. The city is situated in the heart of the Middle East, making it a key hub for trade between Europe, Asia, and Africa. By being based in Dubai, you can benefit from this strategic location and offer your products and services across a wide geographical area.
Liberal economic system in Dubai
Another factor that makes Dubai attractive for entrepreneurs is the city’s liberal economic system. Dubai has an open economic system that allows foreign investors to easily invest and operate in the city. Entrepreneurs based in Dubai benefit from a stable political and economic environment, as well as low tax rates and a free market.
Taxes in Dubai
Of course, Dubai is not only known for the advantages of its city. Many entrepreneurs are also attracted by Dubai’s low tax rates. They allow companies to invest and grow. In Dubai, there is no income tax and no value added tax (VAT), which makes it attractive for entrepreneurs to set up in the city. However, companies based in Dubai must pay a corporate tax that relates to their profits. Corporate tax rates in Dubai vary depending on the industry and can range from 0% to 20% . It is therefore advisable that you find out about the tax rates in the respective industry before you decide to invest in Dubai. Dubai also has a comprehensive double taxation agreement (DTA) with numerous countries, which helps you avoid taxes levied in more than one country. Thanks to these agreements, you can arrange your taxes in a more effective and fair way. Here is a list of countries with which Dubai has a double tax treaty: https://taxsummaries.pwc.com/united-arab-emirates/corporate/withholding-taxesDeutschland is unfortunately not one of them.
Infrastructure of Dubai
Dubai is also known for its advanced infrastructure. The city has a well-developed road, rail and air transportation system that enables companies to deliver their products and services quickly and reliably. Dubai is also home to one of the largest and most modern seaports in the world, making it an important center for international trade.
Culture of Dubai
Finally, Dubai also offers a vibrant and diverse culture that allows companies to attract talent from all over the world. The city is home to people from all corners of the globe and has a rich cultural landscape that helps entrepreneurs build a motivated and talented team.
Technology and digitalization landscape
Another advantage of Dubai for entrepreneurs is its advanced technology and digitalization landscape. The city is investing heavily in technology and aims to become a leading center for digital innovation and entrepreneurship. Entrepreneurs based in Dubai have access to modern technological facilities and resources to help them realize and grow their business ideas.
Leisure activities in Dubai
Dubai’s tourism and leisure offerings are also attractive for entrepreneurs. The city is known for its luxurious hotels, shopping centers, and entertainment options, attracting millions of tourists each year. Entrepreneurs in the tourism and leisure sector have great opportunities to build and grow their businesses in Dubai.
Career opportunities in Dubai
In general, Dubai is an attractive destination for people who want to build their career in an international and dynamic environment. The city is home to people from all parts of the world and offers a rich cultural landscape that allows people to gain new skills and experiences.
Disadvantages of Dubai
Strict immigration laws
However, it is important to note that Dubai has strict immigration laws, and it is generally difficult for foreigners to live and work permanently in the city. Entrepreneurs who want to settle in Dubai usually need to apply for a visa and work permit and comply with certain rules and regulations. Therefore, it is advisable to thoroughly inform yourself about the immigration regulations and requirements before emigrating to Dubai.
Climate in Dubai
The hot and humid climate of Dubai is not for everyone. The city is located in the desert and experiences high temperatures and high humidity throughout the year. This can be uncomfortable for some people, and it is important to be prepared and dress and protect yourself accordingly.
Cultural differences
Although Dubai closely resembles the Western world, cultural differences must still be considered. It is best to familiarize yourself with local customs and traditions to respect the culture.
Interim conclusion
Overall, Dubai offers a wide range of opportunities for entrepreneurs and is an attractive place to invest and grow. The city has a geographical location that is advantageous for international trade, a liberal economic system, advanced infrastructure and technology, as well as vibrant tourism and leisure offerings. Entrepreneurs based in Dubai can benefit from all these advantages and build and grow their businesses successfully. However, there are also disadvantages, such as Dubai’s relatively strict immigration laws. It is advisable to thoroughly inform yourself about the relevant regulations beforehand or seek advice.
Why You Need a Tax Advisor in Dubai
There are several reasons why it makes sense for you to hire a tax advisor for Dubai. Firstly, Dubai is a city with a complex tax system that can differ from other countries. A tax firm helps to understand Dubai’s tax system and utilize the best tax benefits for your business. Another reason why you should consult a tax firm in advance is that the city has a comprehensive double taxation agreement (DTA) with numerous countries. A tax advisor helps you understand the DTA and ensures that you do not fall into any tax traps. For example, Germany does not have a DTA with Dubai, which is particularly relevant if you want to stay longer in Germany. If your company’s value creation takes place in Germany, you are also liable to pay taxes in Germany. Moreover, a firm can help optimize the company’s financial management and ensure that all taxes are paid timely and accurately. Additionally, competent advice protects your company from potential tax disadvantages and ensures that your company operates in compliance with Dubai’s tax laws. Overall, an international tax firm can be of great benefit and help you understand Dubai’s tax system and optimize the company’s financial management. Therefore, it is advisable to hire a tax advisor when establishing or growing a business in Dubai to ensure that you can take advantage of the best possible tax benefits and understand the tax-legal conditions.
How can DW&P help you?
DW&P is an international tax law firm specializing in entrepreneurs who wish to emigrate to countries such as Dubai, Malta or Portugal. Our team of lawyers and tax advisors, together with our local partners, will help you with all relevant aspects of emigrating to Dubai and setting up a company in Dubai. Benefits of DW&P:
- Company formation and administration
- Expert, multinational team to help you find the perfect solution for you from over 2,000 business activities
- Business licenses available
- Competitive general trading license available
- Fast and efficient company formation
- No physical presence of the business owner required during the incorporation process.
- No paid-up share capital required
- Real estate office solutions
- Immigration in Dubai: Registration of the VIP visa
We look forward to analyzing your situation with you in a non-binding initial consultation and to examining whether and to what extent Dubai could be of interest to you.
