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  • Writer's pictureAkram Cheik - Lawyer

5 reasons to move to Dubai

1 - A safe and business-friendly environment.

Firstly, the attractiveness of the United Arab Emirates is characterized by numerous factors which explain the creation of foreign companies, particularly in Dubai. This place in global economic life makes the Emirates one of the best countries in terms of foreign direct investment (hereinafter referred to as FDI). Objects which continue to multiply over the course of legislative reforms and which contribute to attracting and securing foreign investors. The 2020 reform, which removed the requirement to hold 51% of shares for the benefit of an Emirati citizen, completed the liberalization of economic activity in the Emirates; now, a foreigner can 100% own a company on the continent (See article - Business on the continent).

2 - Taxation

Companies registered in Dubai were completely exempt from tax on income earned within the territory of the United Arab Emirates. However, a tax of 9% is now only applicable on the bracket above 375,000 AED.

However, capital gains made in Dubai are exempt from tax;

Dividends paid by a foreign company and received in Dubai by a tax resident of Dubai are exempt from flat-rate tax or withholding tax.

The same goes for collecting dividends and royalties.

On the other hand, from 2018, a value added tax of 5% is applied, but the end consumer is responsible for its payment. (See article on VAT)

3- No declarative and administrative constraints

Unlike some EU countries, reporting procedures in the United Arab Emirates are less restrictive and facilitated by our firm.

In addition, new technologies introduced by the government are at the service of businesses to simplify administrative procedures in the United Arab Emirates.

4 - Costs

Social charges and contributions are adapted and completely transparent. This allows you to control your budgets from business creation to license renewal. No indirect costs are anticipated.

4 - Internal security and legal security

Finally, legal reforms were also carried out to transform the country into a multicultural space through the development of labor law (TITLE), family law (TITLE, see also the article on divorce) and criminal law (TITLE), allowing certain prohibited activities, increased tolerance, which makes the country more interesting for many investors or ordinary individuals who want to enjoy life in Dubai.

5- Ease of exchange and purchase in cryptocurrencies

Indeed, the United Arab Emirates facilitates transactions in cryptocurrencies, the possession of securities or digital assets is not subject to declaration and is not subject to taxation. In addition, many merchants or developers accept payments in cryptocurrencies.

Akram Cheik, Lawyer

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