Moving to Dubai in 2026: The Complete Tax Guide (Pros, Cons & Alternatives)

Moving to Dubai is no longer the tax panacea it once was for most entrepreneurs in 2026. Since June 2023, Dubai has levied a 9% corporate tax on profits over AED 375,000, and since 2025, an additional 15% tax applies to large multinational companies. For small and medium-sized enterprises (SMEs), EU jurisdictions like Malta offer significantly more planning security with a 5% effective tax rate. In this article, I – as an international tax advisor with over 20 years of experience – will explain all the advantages, disadvantages, and tax pitfalls of relocating to Dubai.

Dubai is considered the city of unlimited possibilities: favourable taxes, luxurious living, and an international environment. Especially since the wave of influencers relocating there, the desert metropolis is in the focus of British and international expats more than ever. But can Dubai really deliver on all its promises? Are there only benefits, or does the city have its catches?

Let's explore these questions together and dive into the life, culture, and above all, the tax reality of Dubai.

Basics about Dubai

Before we start, I'll give you some fundamental information about Dubai and the United Arab Emirates.

The Geographical Location of Dubai

The United Arab Emirates, and thus Dubai, are located outside the EU on the continent of Asia. The UAE borders Saudi Arabia and Oman and lies south of Iran, separated by the Persian Gulf. The flight time from London to Dubai is about 7 hours, covering a distance of around 5,500 kilometres.

Dubai: An Emirate of the United Arab Emirates (UAE)

Dubai is the largest city in the United Arab Emirates (UAE) and the capital of the emirate of the same name. With around 3.9 million inhabitants – about 85 to 90 percent of whom are foreigners – Dubai is one of the most international cities in the world. It is estimated that over 120,000 British expats currently live in the UAE.

The United Arab Emirates (UAE)

The United Arab Emirates on the Persian Gulf consists of a total of seven emirates. An emirate describes the dominion of an Emir – historically a province administered by a prince.

The capital of the United Arab Emirates is Abu Dhabi. Dubai is located about 140 km from Abu Dhabi and can be reached in 1.5 hours by a train that runs every 20 minutes.

The Seven Emirates of the UAE

The seven emirates of the United Arab Emirates are:

1. Abu Dhabi (Capital)
2. Dubai
3. Sharjah
4. Ajman
5. Umm Al Qaiwain
6. Ras Al Khaimah
7. Fujairah

A Brief Overview of the 7 Emirates

Life in Dubai

If you are considering Dubai as a business location, you should also consider factors such as climate, official language, religion, and culture.

I will also touch upon how high the cost of living is compared to the UK.

What is the Climate like in Dubai?

The Arabian Peninsula has an arid, subtropical climate – essentially a desert climate. This means it is extremely hot and dry. As you can see in the climate table below, the average high temperature is 40 degrees Celsius, and at night the average low is 30 degrees Celsius. In summer, temperatures can rise above 45 degrees Celsius – often with high humidity.

So when exactly is the best time to travel to Dubai?

The best time to visit Dubai as a tourist is in "winter". Although one cannot speak of a real winter in Dubai, as for us Europeans, even the "wintry Dubai temperatures" are at a summer level.

Temperatures pleasant for us prevail from November to April; this is also the peak tourist season.

In summer, on the other hand, it is so hot that you will quickly want to escape back into an air-conditioned mall. Of course, this varies from person to person.

The Official Language in Dubai

The official language of the emirate and the city is Arabic. However, you are not lost in Dubai without it: Many residents speak English, so you can communicate very well. It shouldn't be forgotten that Dubai has a high proportion of foreigners whose common denominator is the English language. Nevertheless, one should be willing to learn some Arabic and engage with the Islamic culture.

Religion in Dubai

Dubai is a Muslim-majority country. Although Christians, Hindus, and Buddhists also live here, they are in the minority with a 25 percent total share. The Emirate of Dubai is the only one that has a Hindu temple and a Sikh Gurudwara.

Culture in Dubai

If you are interested in Islamic culture, Dubai is the right place. Old tradition meets modernity. You will find museums where you can discover the roots of the culture.

Of course, in Dubai, as in any other country, you must adapt to the local culture. Specifically, this means that you should avoid short clothing when visiting mosques, for example.

Another important aspect is Ramadan. During Ramadan (usually from mid-April to mid-May), different rules apply: eating or drinking in public is not allowed during daylight hours. Chewing gum is also prohibited.

Currency in Dubai

In Dubai, as in the other emirates, the Dirham (abbreviation: AED) is the official currency. EUR 1,000 corresponds to approximately AED 4,028.

Law and Rules in Dubai

The legal system in Dubai is based on Sharia law. Sharia describes "the totality of all religious and legal norms, mechanisms for finding norms, and interpretation rules of Islam".

Specifically, this means, for example, that public displays of affection and kissing in Dubai can be punished with prison, fines, or deportation.

Update November 2023: As part of a comprehensive legal reform, the UAE has legalised the cohabitation of unmarried couples. Likewise, consensual sex between adults outside of marriage is no longer a criminal offence. This has changed one of the most frequently criticised regulations in Dubai.

Furthermore, stricter rules apply in the metro: eating and drinking, as well as chewing gum, are prohibited there.

Swearing in public and carrying alcohol in public are also considered criminal offences.

How Safe is Dubai?

According to the Global Peace Index, Dubai is considered one of the safest cities in the world. The UAE ranked 42nd out of 163 countries in the Global Peace Index in 2024 and is considered the safest country on the Arabian Peninsula. Even if there is some scepticism towards Muslim-majority countries, you can walk through the streets quite calmly without having to be afraid. The crime rate is very low.

What is the Cost of Living in Dubai?

It is always difficult to make a blanket statement about the cost of living, as it fluctuates considerably depending on your personal lifestyle. Our analysis shows the following picture:

A 1-bedroom apartment costs between AED 100,000 and 140,000 per year, i.e., EUR 22,615 to EUR 31,661, or EUR 1,884 to EUR 2,638 per month. In addition, there are utility costs of AED 1,200 to 5,000 per month (EUR 271 to 1,130) and a so-called Housing Fee of 5 percent of the annual rent.

The costs for an international school range between AED 20,000 and 40,000 per year depending on the institution.

According to data sources, you need approximately EUR 3,993 (AED 17,794) monthly to maintain a standard of living comparable to EUR 5,200 in London. As a minimum for a comfortable life, experts recommend a monthly income of EUR 5,000 to 7,000.

While consumer prices might be slightly lower than in London, high rents drive the total cost of living up. Restaurant prices are also comparable to or higher than UK levels.

Interestingly, electronic devices are cheaper than in the UK because import duties are low. Cars are also very affordable due to low import duties. Not only the purchase but also the maintenance of a car is cheap in Dubai – petrol prices are comparatively low.

The table below shows you various indices: the cost of living index of Dubai compared to London and Abu Dhabi.

Popular Residential Areas for Expats

For international expats, the following districts are particularly popular:

• Downtown Dubai / Business Bay: Central location, modern skyscrapers, high rents
• Dubai Marina / JBR: Near the beach, international flair, many restaurants
• Dubai Hills Estate: Family-friendly, green surroundings, good schools nearby
• Creek Harbour: Up-and-coming, slightly cheaper, water views
• Emaar Beachfront: Premium location on the beach, newer buildings

Entry and Visa for Dubai

What do you need to consider when entering Dubai? What visa options are available? A comprehensive overview.

Entry as a Tourist

To enter Dubai, you need a valid passport, but UK citizens do not need a visa applied for in advance – it is granted automatically upon entry. More precise entry requirements can be found at the Foreign, Commonwealth & Development Office (FCDO).

Tourist Visa

UK citizens receive a free visa on arrival valid for 30 days. EU citizens (e.g., German nationals) receive a 90-day multiple-entry visa valid for 6 months.

Residence Permit: Residence Visa

To live in Dubai permanently, you need the so-called Residence Visa. There are several ways to obtain a residence permit:

• Employee: Residence Visa via the employer
• Real Estate Purchase: Minimum investment of AED 750,000 for a 2-year visa
• Company Formation or Shareholding: Investor Visa

When setting up a company in Dubai, you can expect formation fees of approximately EUR 3,700 to 10,000 (depending on Freezone or Mainland) as well as annual renewal costs.

Golden Visa: 10 Years Residence

The Golden Visa has been one of the most attractive visa programmes in the UAE since its introduction in 2019 and was significantly expanded in 2025/2026:

• Duration: 10 years, renewable
• Investors: Minimum investment of AED 2 million (approx. USD 550,000) in real estate or companies. Since 2025, off-plan properties from approved developers are also accepted.
• Skilled Professionals: The minimum salary requirement was reduced from AED 50,000 to AED 30,000 per month
• New Categories 2025/2026: Content Creators (up to 10,000 people via the Creators HQ), educators, long-serving nurses, humanitarian contributors
• Cost: AED 3,500 to 10,000 (including visa, 10-year Emirates ID, and medical examination)
• Special Feature: Golden Visa holders receive access to UAE consular services worldwide – similar to Emirati citizens

Sources: Time Out Dubai, Meydan Free Zone

Digital Nomad Visa

For remote workers and digital nomads, Dubai has offered a special 1-year visa since 2021:

• Requirement: Proof of monthly income of at least USD 3,500
• No company formation in the UAE required – you continue to work for your foreign employer or your own company
• Access to local services such as bank accounts and health insurance

Retirement Visa

Since 2020, retirees can also apply for a 5-year visa for Dubai:

• Requirement: Financial proof (property ownership, savings, or active income)
• Renewable for another 5 years
• The previous rule that persons over 60 years of age did not receive a work permit has thus been significantly relaxed

Work Visa in Dubai

Employees with a permanent position at a company based in Dubai receive a residence and work permit. The prerequisite for this is an invitation from the company.

In addition, you must have your school or university degree certificate legalised by the UAE embassy and undergo an official medical examination. Additionally, proof of health insurance must be provided.

Such a residence permit is usually valid for 2 to 3 years and is renewable.

Important: For tax residency in the UAE, you must spend at least 183 days per year in the country. Without this minimum stay, no Tax Residency Certificate will be issued.

Working in Dubai

The high proportion of foreigners suggests it: The job market in Dubai has a lot to offer. Although it is officially stated that UAE nationals are preferred, your chances are good. In particular, specialists and academics in the fields of IT, Artificial Intelligence, engineering, healthcare, and management have high chances.

A working week in Dubai is 5 days or 48 hours. The lunch break is usually between 2 pm and 5 pm. Friday (half-day) and Saturday/Sunday are the official weekend (aligned with global markets since 2022).

Overall, salaries can be attractive, and employees in Dubai pay 5 percent social security contributions (Employers: 12.5 percent) – but this usually applies to GCC nationals. Expats often have different arrangements.

How does Health Insurance work in Dubai?

Update 2025: Since 1 January 2025, mandatory health insurance applies in all seven emirates. Employers must provide their employees with DHA-certified health insurance before a residence permit is issued.

• Basic Package: From AED 320 per year (the cheapest package)
• Self-employed and Founders: Must take out private health insurance with minimum standards
• Penalties for non-insurance: Up to AED 500 per month, maximum AED 150,000
• Benefits: Access to 7 hospitals, 46 clinics, and 45 pharmacies. Chronic diseases are covered without a waiting period.

Source: Pacific Prime

Important: Since the UK and the UAE do not have a reciprocal social security agreement for pensions, you must secure your retirement provision privately. Your UK state pension rights are preserved, but you won't be building up new qualifying years unless you make voluntary Class 2 or 3 contributions.

Living in Dubai

Regarding the search for accommodation, there is a big difference to the UK: The search for accommodation in Dubai is short-term. It is rather unusual to rent an apartment months in advance. In Dubai, you look at several apartments and usually decide immediately afterwards whether you want to move in or not.

How do I set up a company in Dubai? Freezone vs. Mainland

One of the most important decisions for entrepreneurs in Dubai is the choice between a Freezone and a Mainland company. The differences are significant and have direct implications for your tax burden.

Freezone Companies

Dubai has more than 30 Freezones (including DMCC, JAFZA, IFZA, DIFC), each specialising in certain industries.

• Ownership: 100 percent foreign ownership, no local sponsor needed
• Taxes: Qualifying Free Zone Persons (QFZP) continue to pay 0 percent corporate tax on qualifying income – i.e., income from other Freezones or foreign customers
• Office: Virtual offices and Flexi-Desks possible (from approx. AED 6,000)
• Restriction: No direct access to the UAE domestic market without a local partner or Mainland branch
• Visas: Typically 3 to 6 visas per company

Mainland Companies

• Ownership: Since 2025, most activities allow 100 percent foreign ownership; for a few industries, a local partner or Service Agent is still required
• Taxes: 9 percent corporate tax on profits over AED 375,000
• Office: Physical office required (from approx. 200 sq ft)
• Market Access: Unrestricted access to the entire UAE market
• Cost: Trade license from AED 12,000 to 15,000 plus

Formation Costs Overview

• Freezone (without visa): From approx. EUR 3,700
• Freezone (with visa and all-in package): EUR 6,000 to 10,000
• Mainland License: From approx. EUR 3,000 to 4,000 plus physical office
• Annual Renewal: Varies by Freezone, typically EUR 2,000 to 5,000
• Recommended Minimum Income: EUR 5,000 to 7,000 per month

Sources: DMCC, Meydan FZ

What Taxes exist in Dubai?

In this chapter, you will get a comprehensive overview of the tax situation in Dubai – as of 2026.

What Taxes do Individuals pay in Dubai?

Dubai continues to levy no income tax on individuals – all types of income such as salary, pension, or capital gains are tax-free. According to PwC and the UAE Ministry of Economy, there is currently no law planned to introduce a personal income tax.

Furthermore, in Dubai there is:

• No wealth tax
• No tax on property ownership (only a transfer fee of 4 percent)
• No capital gains taxes for individuals
• No inheritance and gift taxes
• No capital gains tax on cryptocurrencies – although Malta also offers legal ways to sell crypto assets tax-free
• 5 percent VAT since 2018

How high is Corporate Tax in Dubai since 2023?

This has changed fundamentally since 2023: Since June 2023, entrepreneurs who have registered their company in Dubai must pay the statutory tax rate of 9 percent on profits exceeding AED 375,000 (approx. EUR 90,000).

Source: UAE Federal Tax Authority

Small Business Relief: 0 Percent up to AED 3 Million

What many do not know: The UAE offers a temporary tax exemption for small businesses, the so-called Small Business Relief. Companies with a revenue (not profit) of under AED 3 million (approx. EUR 750,000) can be exempted from corporate tax until 31 December 2026.

• Based on revenue, not profit
• Applies to all tax periods starting on or after 1 June 2023
• Not available for Qualifying Free Zone Persons (who already pay 0 percent)
• Limited until the end of 2026 – after that, it is unclear whether the regulation will be extended

Source: UAE Federal Tax Authority – Small Business Relief

Dubai Taxes 2026: My Predictions have come true

Update 2026: What I feared in 2023 has happened. The United Arab Emirates have not only introduced the announced 9 percent corporate tax but have already followed up with further tax increases. This news is likely to hit many entrepreneurs hard who had hoped Dubai would stick to the originally announced tax.

This development represents an even more significant change for all entrepreneurs and self-employed people living in Dubai or planning to move there. But private individuals should not feel too safe either – my warnings from back then apply today more than ever.

What has really happened since 2023?

The new rules since January 2025:

• Additional 15 percent tax (Domestic Minimum Top-Up Tax) for large multinational companies with global revenue over EUR 750 million – based on the OECD Pillar Two initiative
• Registration obligation for all entrepreneurs, even below the threshold of AED 375,000
• AED 10,000 fine for late registration
• 7-year retention obligation for all tax-relevant documents
• New unified penalty system for Corporate Tax, VAT, and Excise Tax (Cabinet Decision No. 129 of 2025)

Sources: UAE Ahead, The National, Chambers & Partners

Just as I warned in 2023: The UAE introduces new changes step by step and only lets us know a part at a time.

My Prediction from 2023 Confirmed

From my 20+ years of experience, I have learned one thing: States plan years in advance and always introduce new changes gradually.

And that is exactly what happened:

The issue (income tax) is not at all on the table at the moment.

This statement turned out to be what I feared: a sedative.

Today, just two years later, not only do companies pay significantly more taxes, but Dubai has also introduced a 15 percent surtax for large companies. It is only a question of time before individuals in Dubai are taxed as well.

The End of the Start-Up Phase is getting harder

The threshold for taxation of about EUR 90,000 profit per year was already low in 2023 – today it has become downright problematic. Why?

New burdens since 2025:

• All entrepreneurs must register, even if they are below the threshold
• Extensive documentation obligations
• Penalties for non-compliance
• Additional compliance costs

Especially as an emerging company with growth ambitions, it is more important than ever to settle in an environment where planning security prevails and a business-friendly tax policy applies. Neither is guaranteed in Dubai in 2026.

It therefore makes even more sense than in 2023 to question the long-term establishment in Dubai as a small and medium-sized enterprise.

What do UK Citizens need to know about Leaving?

Before you move to Dubai, you must understand the tax consequences in the UK. This point is underestimated by many expats. While the UK does not have a general "exit tax" like Germany's Wegzugsbesteuerung, there are critical traps to avoid.

The Statutory Residence Test (SRT)

Leaving the UK tax net is not as simple as just booking a flight. You must navigate the Statutory Residence Test (SRT). HMRC will look at how many days you spend in the UK and how many "ties" (family, accommodation, work) you retain. If you get this wrong, you remain a UK tax resident and owe UK tax on your worldwide income – including your Dubai profits.

The 5-Year Trap: Temporary Non-Residence

If you have been a UK resident for at least 4 of the 7 tax years prior to your departure, you are subject to Temporary Non-Residence rules.

Example: Selling Your Company

Imagine your company is worth EUR 1 million. If you sell it while living in the UK, you might pay 20% Capital Gains Tax (approx. EUR 200,000), assuming Business Asset Disposal Relief doesn't apply or is capped. If you move to Dubai and sell it tax-free there, you save this amount – BUT only if you stay away for more than 5 years. If you return in year 4, that EUR 200,000 tax bill becomes due immediately upon your return.

Is there a Double Taxation Agreement between the UK and Dubai?

Yes. Unlike Germany, the UK has a Double Taxation Convention with the UAE that is currently in force. This provides some protection against being taxed twice on the same income, but it does not override the Temporary Non-Residence rules mentioned above.

The Boris Becker Trap: Fake Relocations

Those who only move to Dubai on paper but actually continue to live in the UK risk criminal consequences for tax evasion. Boris Becker's case is a famous example of how strictly residency rules are enforced. Authorities check:

• Where is your actual centre of life?
• Where do your children go to school?
• Where is your main residence?
• How many days do you demonstrably spend in the UAE?

What are the Disadvantages of Dubai for Expats?

Dubai – the city that lures with luxury, low prices, and tax freedom.

So it seems at least at first glance. But as the saying goes: All that glitters is not gold. Let's shed some light on the disadvantages.

Does Tax Freedom in Dubai really apply always and everywhere?

Yes and no.

If you have read through the article, you might now think: Great, this is a paradise. I'll just set up a company in Dubai and won't have to pay tax on my income anymore. Then I'll have a lot of money in the account.

I have to disappoint you. It's not that simple. As described in the section on UK tax rules, significant tax liabilities can remain or be triggered if you return too soon.

How should Entrepreneurs proceed in 2026?

My recommendation from 2023 remains current: an evaluation of your current situation.

• What does the Dubai location bring you in the long term?
• What disadvantages arise from the Dubai location? (These have become significantly more in 2026)
• Is planning security guaranteed? (Definitely not – the last two years have shown that)
• How much cost will you incur? (Significantly more than in 2023)
• What alternatives exist?

The points mentioned are of course highly individual and should be clarified with your international tax advisor. Please also be careful here about conflicts of interest, depending on where your tax advisor is based!

Nevertheless, I will briefly refer to the last point here. Because the alternative, Malta, has become even more attractive in 2026.

Why is Malta the Better Alternative to Dubai in 2026?

Not only because Malta lies within the EU and has English as an official language. Malta has maintained its effective tax rate of 5 percent – and has even postponed the introduction of the EU minimum tax of 15 percent.

Malta's Advantages in 2026:

• Continued 5 percent effective tax on profit through the 6/7 rule – how exactly this works, I explain in my detailed article on Malta Limited formation
• Planning security: No surprising tax increases like in Dubai
• New incentives for investment funds were even expanded in 2026
• For royalties and interest rates, the refund is often 5/7, so the final tax rate here is 10 percent
• Over 70 Double Taxation Agreements

In addition, persons resident in Malta can benefit from a comprehensive network of double taxation agreements that protect them from having the same income taxed multiple times in different countries.

The decisive difference to Dubai: Malta communicates transparently about planned tax changes, instead of introducing "surprising" new taxes every two years.

Dubai 2026: The Disadvantages are Growing

Outside the EU

You are turning your back on the EU. This also means that you are turning your back on the advantages of the EU. Living in the EU brings several benefits: social security systems, basic medical care in EU host countries, and the free single market.

New in 2026: Additional compliance hurdles for EU business due to Dubai's tightened tax rules.

Distance to the UK

Due to rising living costs in Dubai and new tax burdens, "just quickly flying back to the UK" in 2026 is significantly more expensive than in 2023. The approximately 7 hours flight time and the time difference of 3 to 4 hours can also become a burden in everyday business.

Social Security Agreements

Within the EU/EEA, pension rights are preserved. A social security agreement between Dubai and the UK for pensions does not exist.

New in 2026: With the new registration obligations and more complex tax laws, the bureaucratic effort for British expats in Dubai becomes considerably more complex.

Banking Problem: Increasing Compliance Hurdles

Many European and UK banks are increasingly refusing incoming and outgoing payments from and to Dubai or are significantly stepping up compliance checks. Maintaining a bank account in Europe with a UAE residence is becoming increasingly difficult.

The Gag Order Remains

Just like in 2023, internet celebrities who move to Dubai often have to sign contracts stating that they are not allowed to speak badly about Dubai in any form. This point continues to apply.

Conclusion

I hope that based on my information you have gained a good overview of Dubai and can form your own opinion. Nevertheless, I would like to share my personal opinion with you in this section.

As you have read, there are indeed a number of advantages in Dubai – especially the tax-free private income, high safety, and modern infrastructure. But there is also a growing list of disadvantages that you must not forget: the dwindling tax freedom for companies, the high cost of living, and the lack of planning security.

For me personally, Dubai would not be an option as a business and residential location, as I feel very comfortable and safe in the European culture. The Arab culture may have its merits, but due to the strict regulations, I would not feel comfortable with my family.

Therefore, from one entrepreneur to another, I would advise you to look at other alternatives besides Dubai, such as Malta.

Malta is within the EU, has a short distance to the UK, and despite an effective tax rate of 5 percent, is not listed on any black or grey list. Furthermore, Malta has a very good Mediterranean climate. Since the official language is English, the bureaucratic effort is lower than in some other so-called tax havens where you sometimes have to hire translators.

Further Articles on Alternatives:

• Moving to Malta – The Complete Guide
• Setting up a Malta Limited – How the 5% Setup Works
• Tax Advantages in Cyprus – An Insider Guide
• Dubai or Malta – A Comparison for Freelancers and Entrepreneurs
• The 8 Best Countries to Move to in 2026 – Tax Comparison

Frequently Asked Questions (FAQ)

Do you have to pay taxes in Dubai?

Individuals continue to pay no income tax in Dubai – salary, pension, and capital gains are tax-free. However, companies have been paying 9 percent corporate tax on profits over AED 375,000 (approx. EUR 90,000) since June 2023. Small companies with a revenue under AED 3 million can apply for Small Business Relief until the end of 2026.

How high is the cost of living in Dubai?

The cost of living in Dubai is comparable to London, mainly due to high rents. For a comfortable life, you should expect at least EUR 5,000 to 7,000 monthly. A 1-bedroom apartment costs approx. EUR 1,884 to 2,638 per month.

Do I need a visa for Dubai?

As a UK tourist, you receive a visa upon entry. For a permanent stay, you need a Residence Visa – either via an employer, company formation, real estate purchase, or the Golden Visa (from AED 2 million investment for 10 years).

Which is better: Dubai or Malta for entrepreneurs?

Malta offers a lower and more predictable tax burden with 5 percent effective tax compared to Dubai (9 percent). In addition, Malta is in the EU, has double taxation agreements with over 70 countries, and offers a Mediterranean climate. Dubai scores with 0 percent income tax for individuals and modern infrastructure.

What is the difference between Freezone and Mainland in Dubai?

Freezone companies offer 100 percent foreign ownership and can continue to pay 0 percent corporate tax as a Qualifying Free Zone Person – but only on qualifying income and without direct access to the UAE domestic market. Mainland companies have unrestricted market access but pay 9 percent corporate tax on profits over AED 375,000.

Is Dubai still worth it for entrepreneurs in 2026?

That depends heavily on your individual situation. For entrepreneurs with high personal income and little business connection to the UK/EU, Dubai can still be attractive. For SMEs with EU customers and a profit over EUR 90,000, Dubai has lost significant appeal – especially due to the 9 percent tax and growing bureaucracy.

Is there a Double Taxation Agreement between the UK and Dubai?

Yes, the UK and the UAE have a Double Taxation Agreement. This helps avoid double taxation, but it does not override the UK's Temporary Non-Residence rules, which can tax you on return if you stay away for less than 5 years.

How does company formation in Dubai work?

The formation typically takes 5 to 10 working days: choice between Freezone or Mainland, application for the license, visa application, medical test, biometrics and Emirates ID, account opening. The costs are approx. EUR 3,700 to 10,000 depending on the setup. A recommended minimum income of EUR 5,000 to 7,000 per month should be available.