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Tax in Dubai: advantages for entrepreneurs and expatriates
1. A tax haven for entrepreneurs and investors
Dubai is renowned for its attractive tax environment, making it a destination of choice for entrepreneurs and expatriates looking to optimise their tax situation. One of the main advantages is the absence of personal income tax, which means that expatriate residents are not subject to taxation on their salaries, profits or personal investments. In addition, companies registered in Free Zones benefit from a total exemption from corporation tax and 100% repatriation of profits to their country of origin. This low-tax environment attracts many entrepreneurs, start-ups and international investors looking to maximise their profitability.
Since 2023, a 9% corporation tax has been introduced for companies with a net profit in excess of AED 375,000 a year (around €95,000). However, companies registered in certain free trade zones can still benefit from tax exemptions under certain conditions. In addition, VAT is set at 5%, but does not apply to exports of services and goods, which is an advantage for companies working with international customers.
2. Tax advantages for expatriates
For expatriates, living and working in Dubai means enjoying a tax-free environment, which is a significant advantage over many countries with high income taxes. This absence of tax allows expatriate workers tomaximise their purchasing power and accumulate capital more quickly. What’s more, there is no wealth tax, inheritance tax or compulsory social security contributions, which considerably simplifies financial management for foreign residents.
To benefit from these tax advantages, it is important to obtain a residence visa, which can be obtained through employment, the purchase of property or the creation of a business. What’s more, unlike other countries, Dubai does not automatically exchange tax information with other countries, which guarantees a degree of financial confidentiality for residents and entrepreneurs.
Thanks to this flexible and attractive tax framework, Dubai continues to be one of the preferred destinations for entrepreneurs and expatriates from all over the world wishing to take advantage of low taxation and a dynamic economic environment.
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