If you don’t want to pay any more taxes, it’s best to move to Dubai – at least according to a widespread belief. And in fact, Dubai is still an attractive location in 2024, but a reduction in the tax burden to actual 0% is only possible in a few cases. On the contrary, there is a general company tax of 9 %. Consumption is burdened with a VAT of 5%.

1. No Tax Paying in Dubai: History of the Emirates Tax System

The history of Dubai – at least in fiscal terms – begins in 1971. Here the present Arab Emirates, consisting of Abu Dhabi, Adzman, Dubai, Fujaira, Ra’s as-Chaima, Sharjah and Umm al-Qaiwain, gained their independence from the Kingdom of Great Britain.

The oil boom that had already been used previously led to an almost rapid increase in the economic power of the United Arab Emirates, or UAE for short. As far as individual Emirates had fewer oil reserves, richer locations paid subsidies to them. In this way, Emirates such as Adschman could also benefit from the oil reserves.

This interplay made a “real” tax system uninteresting for Dubai and Co. for a long time, since the state revenues in the true sense of the word were to be found on the green field.

2. Today's Taxation in Dubai

Today, in 2024, the tax system in Dubai has changed slightly. In the meantime, the UAE has also introduced taxes, which we know in this form from Germany or the USA. However, we certainly do not need to mention separately that the tax burden is much lower than in these states. In addition, it is still possible not to pay taxes when living in Dubai.

This applies especially to natural persons without entrepreneurial activities on site. If the person does not maintain a company in Dubai and is also not a registered office here, because this remains in Germany, for example, there are no taxes. An income tax on private income, for example from