Mecca of the rich and beautiful
Dubai, with its capital Dubai City, is probably the best known emirate in the United Arab Emirates and certainly the most notorious. Time and again, the small princely state attracts attention with controversial topics such as the investment of assets in Dubai, the casual treatment of women’s and human rights, and the eccentrically celebrated gigantism. Superlatives are just about good enough for Dubai. The tallest building in the world, a ski resort in the middle of the desert or the replica of the whole world as small private islands, in Dubai everything seems to be possible.
Without a doubt, Dubai is internationally in demand and trendy. Every year, more than 14 million visitors are drawn to the Persian Gulf to see the achievements of oil-funded capitalism in the state with the sun guarantee (360 days of sunshine). At a pleasant 50 degrees outside temperature, the city’s landmarks are explored from the well-tempered jeep and the skyscrapers endlessly shooting out of the desert floor are admired. But not only tourists and adventurers have discovered the desert state for themselves. Fortune seekers from near and far, digital nomads, entrepreneurs and, of course, the wealthy of this world have taken a liking to Dubai. If you’re a self-respecting person, you’re in Dubai – first for a few weeks’ vacation, then for business, and then maybe for good.
Dubai as a center of life: What you need to know
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.
Dubai: culture, country and people
Those who choose Dubai as an emigration country should also be more than clear about the customs of the country as well as the cultural, legal and not least climatic differences. Dubai is a Muslim-majority country where, quite obviously, tradition and history meet progressive modernity. Jurisdiction in Dubai is based on Sharia law, and Muslim holidays such as Ramadan, with their own unique rules , affect all residents, regardless of their religious affiliation.
By European standards, you have to be aware of the country’s conservative leanings to avoid running afoul of the law. In particular, the topic of sexuality and intimacy is heavily regulated by the state in Dubai, which most Europeans perceive as alienating. Swearing in public, extramarital sex, carrying alcohol or even chewing gum are all considered offenses worthy of punishment.
If you still can’t resist the temptations of the Middle East and a 48h / 5 day week doesn’t scare you off, we will be happy to help you find your luck in Dubai. This is because there are also a number of things to consider when investing assets and relocating the center of your life.
We support you with the company relocation to Dubai
Emigrate to Dubai and international assets
- Tax law advice and tax representation in Germany
- Advice on assets in Germany and the EU
- Advice on asset allocation and tax optimisation
- Accounting and asset management
- Holistic organization of an asset management
- Review of existing asset management
- Advice on the subject of inheritance in Germany
Services from our network in Dubai
- Organization and planning of business trips
- Personal escort on site incl. Interpreter
- Support in dealing with authorities, residence permits, etc.
- Planning discussions for investments
- Verified contacts with tax advisors, law firms, notaries, etc..
- Consulting and support for company start-up, relocation in close coordination with us
- Translation and interpreting service
Asset investment Dubai: Helpful articles
- Money abroad: When world income and world assets are taxable here
- Relocation: Insolvency risk of British life insurers in case of relocation
- Black money abroad and other investment risks
- Small or large matrimonial property regime swing for asset protection – absolutely legal design – or tax evasion deluxe?
- Attorney Tax Law Munich
Our office in Munich
You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.
About the author
Dr. Johannes FialaPhD, MBA, MM
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala
On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.
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