The Emirates allows international enterprises to freely dispose of their own assets without tax liability for capital transactions. Also, foreign investors can count on 100% repatriation of profits or the return of foreign capital for investment in the country of origin.
Tax policy is a separate “attractive” aspect of setting up a business in Dubai: taxes on dividends and income payments are virtually non-existent in the country. There is only a 5% VAT on revenue, which is indirect. Starting from 2023, companies with an annual profit exceeding $100,000 earned within the UAE territory will be required to pay a 9% corporate income tax.
Tax benefits for expats are available through double taxation, investment protection and free trade agreements, as well as membership in the International Trade Association GAFTA and the World Trade Organization.
Dubai is extremely favorable for relocation for several reasons:
- a wide consumer market, which provides opportunities to establish a new business from scratch or expand the customer base of an existing company.
- stability in the banking sector, including a stable currency exchange rate and the guarantee of customer information confidentiality.
- low customs tariffs enable cost-effective import and export, with a standard rate of 5% for most product categories and exemptions for re-export.
- additional opportunities exist for the IT sector, which assists startups and digital technology companies in establishing their businesses in the UAE through active government investments.