From an oil state in the desert to a world metropolis with good weather, low prices and, above all, no taxes. The image of Dubai in people’s minds has manifested itself, at the latest since the exponentially increased emigration rate during the Corona pandemic, even among the common middle classes as a potential emigration country. The country’s tax policy is particularly appealing to tax-happy Europeans. There is no income tax, wealth tax or capital gains tax in Dubai. A 5% value-added tax has been levied on consumer goods since 2018, which is of no further consequence, and a relatively low corporate income tax for companies of 9% is not planned until 2023.
Interest aroused? If you want to enjoy these benefits yourself, you first need a so-called residence visa, i.e. a residence permit. The classic way to obtain this status as an employee is through an invitation/employment with a Dubai-based company. As soon as this is available, one receives a work permit from the authorities, which is valid for up to 3 years.
Those who have already left the traditional labor market behind can accelerate the issue of residence permits by buying a property in the country. The so-called Investors Visa is an attractive opportunity for people with the necessary small change to invest their capital in the country and at the same time a door opener for possible further local business.
Last but not least, there is the possibility to “buy into” the country by founding or participating in a company, also a medium investor visa. In the past, the non-existent or low taxes have made Dubai a kind of mecca for start-ups and attracted fresh capital to the country. To what extent the introduction of initial taxes for companies will affect this trend remains to be seen. It is worth mentioning at this point that the costs of setting up a company in Dubai are very manageable and the maintenance fees are also very limited.