Dubai has shot up like a rocket and is today a great business jurisdiction. Dubai has therefore also become an increasingly popular destination for expats or others wishing to earn a tax-free salary. That’s why Dubai is a zero-tax haven for individuals.
4 benefits with Dubai:
- No personal income tax
- No capital gains tax
- No inheritance tax
- No VAT
Tax haven with zero tax
Dubai is strong compared to many other international locations but setting up a company is certainly not cheap as it costs almost double compared to other destinations. However, the big advantage is, of course, no tax.
Thus, Dubai meets the criteria to be considered a tax haven. Dubai is a tax-free jurisdiction if you don’t conduct business there. Profits, interest, dividends and any other form of income earned abroad by a Dubai company will not be taxed locally in Dubai.
Currently, Dubai does not have a currency control in place. This makes it easy for individuals and international customers to transfer money in and out of the area, which is a major advantage when it comes to international trade.
So far, Dubai hasn’t signed any tax exchange agreements. When registering a company in one of the free trade zones, shareholders will not be disclosed and only limited information about the Board of Directors will be disclosed, potentially only nominated directors. This, in turn, strengthens the benefits of asset protection. For example, the Dubai Internet City (DIC) is a free trade zone specifically for e-commerce companies.
Companies established in Dubai must keep annual financial reports. These reports must be prepared, but it’s not a requirement for them to be submitted to any authority in Dubai. This complies with the privacy laws of companies.
Brief information about Dubai
Dubai is located at the southern end of the Persian Gulf and is one of the United Arab Emirates. Dubai is the second largest Emirate and is a popular tourist destination. The skyscrapers, modern communications, and banking systems of Dubai attract investors from Asia, Europe, Middle East, India, and the African continent. Tourism, the oil industry and financial services all contribute to the Dubai economy.
Read more about Dubai on Wikipedia.