Many German entrepreneurs are interested in moving out of Germany. Dubai plays an increasingly important role as a destination. In fact, there are a large number of factors that justify why they want to emigrate to Dubai. For example, the simple establishment and tax-hardly burdened management of companies in Dubai is one such reason. In addition, there are many ways that make daily life much easier. Because innovative services are a forward-looking trend in Dubai, which we in Germany can probably wait for a long time. But the topic of taxes in Dubai is also very attractive.

1st Emigration to Dubai – Introduction

The Emirate of Dubai, whose capital has gained enormous popularity among people willing to emigrate abroad since the Corona pandemic, is one of the regions with the lowest crime rate in the world. This is remarkable insofar as the British Empire had long appeared on the ground as a protective power. This British intervention in the 19th century actually had an important reason. It was supposed to stop the ongoing pirate attacks in the Persian Gulf, which started from the coast of today's United Arab Emirates (UAE), so that regional maritime trade and that of the Far East could finally take place safely again.

The contrast between then and now could hardly be greater. Meanwhile, Dubai in particular has transformed into a sophisticated fairytale land. In many areas, modernity prevails here, even a belief in progress bordering on utopia. And this in turn attracts more and more people from abroad who want to live in such an environment. Emigration to Dubai has become a worldwide trend because life here offers so much added value. But what exactly are the reasons for this? As a tax consultancy firm with a focus on international tax law, we know that low to no taxes are certainly good arguments here. Therefore, in this article, we look at what other, extra-tax reasons there are to move to Dubai.

2. emigrating to Dubai: facilitating business start-ups

The first reason we would like to mention here is one that we assume will interest most of our readers. Many of them are entrepreneurially active and curious about what it might look like elsewhere in the world when it comes to starting a company. In addition, we in Germany are used to such a process being accompanied by a flood of bureaucracy. Of course, the question is whether it is possible to start a company with less effort.

Yes, in Dubai and elsewhere in the UAE, company formation is a relatively easy and quick matter to accomplish. There are also various regulations to observe, but these can all be done online – even from abroad – as well as during a short stay in Dubai. So you can combine the useful with the pleasant.

emigrating to Dubai: low taxes

But why you should absolutely start a company abroad depends on taxes. Because emigrating to Dubai is associated with significantly greater tax advantages compared to taxation in Germany and many other EU countries. On the one hand, there is a flat-rate tax rate of 0% on all private income. This applies, for example, when renting real estate in Dubai. In this regard, it should be noted that the transfer of land entails a kind of real estate transfer tax in the UAE; 4 % of the value of the land. On the other hand, companies in the UAE will in future pay a flat rate of 9% corporation tax. However, this only applies after exceeding a generous allowance of AED 375,000, which corresponds to approximately EUR 94,000.

On the other hand, what is perceptible in everyday life in terms of taxes are the levies on traffic taxes, in particular on sales tax. A sales tax of 5% on the value of the goods is calculated. Additional transport taxes are imposed on products which are harmful to health, such as tobacco products and alcoholic and certain other beverages, especially sugar-containing ones.

4. emigrating to Dubai: innovative spirit

In general, the Far Eastern culture is attributed a high affinity for new techniques and developments. Japan in particular stands out, which has long been a leading nation in the field of robotics. But also in the Persian Gulf for some time amazing things are happening.

In fact, more and more startups with innovative ideas have established themselves in Dubai in recent years. For example, there are mobile services for refueling cars or cleaning them. With an app you can book and pay for this service, so you can save the time-consuming journey to the gas station or car wash. Similar services exist for cleaning clothes. The wear of the clothes to be cleaned can also be booked via an app. If you want a comparable service in Germany, you either have to go to a laundry – Bringing and picking up are then two ways – or staying in an upscale hotel. In addition, there are other services, such as a driver service, with which you can be transported in your own car, so that you can work, for example, while driving.

This is just a selection of examples. They prove that what we consider to be forward-looking in Germany has long been commonplace in Dubai. But if you want to live in such an advanced climate, you should think about emigrating to Dubai.

5. Immigrate to Dubai – Conclusion