Dubai, the jewel of the United Arab Emirates, attracts the attention of entrepreneurs from around the world thanks to its highly favourable tax conditions and transparent regulations. No income tax, low fiscal burdens and attractive free zones make the city one of the best places to run a business.
No income tax - Dubai's biggest advantage
In Dubai, both individuals and most businesses are exempt from income tax. Employees can enjoy their full earnings, and companies can reinvest profits in growing their business. This makes Dubai an ideal location for large corporations as well as small businesses looking to optimise costs.
VAT in Dubai - only 5%
In 2018, the United Arab Emirates introduced VAT at a rate of 5%, which covers most goods and services. However, there are preferential arrangements for entrepreneurs with low incomes:
- VAT applies only to companies whose annual turnover exceeds AED 375,000 (approximately €90,000).
- Exports of services and goods outside the UAE are exempt from VAT, which allows companies operating in international markets to reduce their operating costs.
Free zones in Dubai - a tax haven
One of Dubai's greatest advantages is its free zones, which offer entrepreneurs:
- Full ownership of companies without the need to work with a local partner.
- Exemption from corporate taxes and customs duties.
- Access to well-developed infrastructure and global markets.
Thanks to these benefits, running a company in a free zone is an excellent solution for international businesses.
The new corporate tax - what you should know
In 2023, the UAE introduced corporate tax at a rate of 9%. However, most small and medium-sized businesses can still benefit from tax reliefs, such as:
- 0% tax if annual profits do not exceed AED 375,000.
- Small Business Relief for companies with annual revenue below AED 3 million (valid until the end of 2026).
Taxes in Dubai - benefits for foreign companies
Dubai attracts foreign investors thanks to:
- No taxes on profits and dividends.
- Simple and transparent accounting.
- Minimal bureaucratic burdens.
Companies in Dubai can benefit from preferential conditions, such as double taxation treaties, which eliminate the risk of double taxation between the UAE and other countries, including Poland.
Summary
Dubai is a tax haven for both individual entrepreneurs and international corporations. Favourable regulations, no income tax and numerous reliefs make running a business in this city exceptionally profitable.
FAQ - frequently asked questions about taxes in Dubai:
- Is there income tax in Dubai?
No, individuals and most companies are exempt from income tax. - Do I have to pay VAT in Dubai?
Yes, but only if the company's annual turnover exceeds AED 375,000. - What are free zones in Dubai?
These are areas in which companies are exempt from corporate taxes and customs duties. - What are the benefits of running a company in a free zone?
No taxes, full ownership of the company and access to global markets. - How do I set up a company in Dubai?
Contact our team, who will guide you through the registration process step by step.
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