There is no income tax in Dubai – so far, so well known. However, the corporate tax is also significantly lower compared to other countries – such as Germany. Because it is only 9% of the respective annual profit of the company. For comparison: In Germany or the USA, there are between 25% and 30% corporate taxes. The idea of starting a company in Dubai and running the company from Germany is therefore obvious. Legislators also know this and have created some regulations in the Foreign Tax Act that entrepreneurs should take into account in their planning.
Founding the first company in Dubai: The process at a glance
If you want to start a company in Dubai, you basically have various options for this. In general, however, a distinction is made between a foundation with and one without a visa:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.