Save taxes & enjoy the sun

Dubai taxes

Benefit from our years of experience and expertise

Dubai tax

In Dubai you pay almost no taxes, at least no income tax. The high tax burden from Germany is completely omitted here – at least for all income generated in Dubai. Pensions and income from capital gains, such as dividends, interest and gains realized by sale, are also tax-free in Dubai. Real estate, inheritances and gifts are not subject to taxes either.

However, there are some taxes that do have to be paid in Dubai. These are a small tax on the resale of real estate and since 2018 there is a VAT.

Dubai taxes - Insights

How much tax do you pay in Dubai?

Dubai is almost tax-free. However, a VAT is imposed which amounts to 5%, and is therefore much cheaper than in Germany. Additionally, a transfer fee of 4%, which can be considered a tax, is to be paid on real estate transactions. This is usually paid by the buyer.

Why is Dubai tax-free?

The taxes that other countries impose on their residents in order to cover government costs do not apply in Dubai. So no income, pension, or capital gains taxes. Some of the locals are even generously supported by the state and have privileges in business life. This is largely financed by petroleum exports. Dubai has become rich through this and does not need a tax system like in Germany, for example.

How does Dubai finance itself?

For many decades, Dubai has financed itself primarily through its petroleum exports. In addition, Dubai is being purposefully developed into a trading metropolis and is nowadays an important gold and diamond transfer site.

Customs and import fees, as well as VAT, contribute to the financing. In addition, income from international tourism has risen sharply over the past 10 years. The tourism sector should secure the economic existence of Dubai in the long term. To this end, a number of imposing buildings and hotels were built and more and more influencers were invited to Dubai to publicize the goal.

Dubai on the EU blacklist?

In October 2019, Dubai and the entire United Arab Emirates were removed from the EU blacklist. This was welcomed by international investors and financial advisors. However, since the beginning of 2021, there have been new efforts by the EU to put the United Arab Emirates back on the list.

Establishing a company in Dubai
That’s how it works

Requests

First, send us your request via our contact form. We will get back to you promptly afterward.

1

Consultation by phone

Afterward, we will advise you at no charge by phone & answer your questions.

2

Assignment

Immediately after your assignment, you submit the required documents to us. We conveniently take care of all bureaucratic channels, forms, and appointments on-site for you.

3

Company established in Dubai

Take advantage of tax benefits in Dubai

4

You plan to establish a company in Dubai and have questions?

Abdurrahman Al-Hashimi

Can I maybe help you out? If you are unsure or have a question, I will be happy to advise you.

ZurichTrustGroup Customer Consultant

4 years of experience Customer consultant