- Advantages and Possibilities for Business in Dubai

Advantages and Possibilities for Business in Dubai

Advantages and Possibilities for Business in Dubai

The jurisdiction of the Emirate of Dubai is getting more and more popular for international business. The favourable tax climate and comfortable conditions for living attract potential investors from all over the world.

There are certain important factors for carrying on business that make this jurisdiction so attractive and unique. In particular, that is the absence of income taxes for private persons, as well as non-existence of inheritance taxes and capital gains taxes, and also absence of corporate income taxation. Such conditions allow the United Arab Emirates to compete successfully with traditional tax heavens.

The government of Dubai does not only completely abolish natural person and legal entity taxation; it also strives to create perfect legal and other environment for carrying on international business. Today, the large number of international double taxation treaties is signed by the UAE. There are also special economic zones with a special economic status on the territory of the Emirate.

Free economic zones of the Emirate of Dubai offer various benefits for carrying on business, among them are:

  • Long-term tax holidays (for up to 50 years) with the possibility of its subsequent prolongation;
  • The exemption from taxation of goods that are imported into special economic zones and also an absence of taxes for their following export.
  • Customs privileges for imported equipment and machinery.

How to get a tax resident status of the Emirate of Dubai

It is not complicated to become a resident of Dubai. There are two main means to do that. The first one is to register your company in Dubai and get the resident visa for you and all your family members over such company. This choice is effective, comparatively inexpensive and the entire procedure lasts on the average only about 1 month.

The second option is over a real estate purchase in Dubai. In this case, the price of the real estate you shall buy to qualify for this type of visa must be at least one million dirham. If you buy a real estate with a mortgage, at least 50% of the mortgage must be paid back.

Speaking about conditions for living, Dubai has been playing the leading role in the international ratings for a long time. It is not a secret that the crime rate is on the absolute minimal level here. Moreover, the best educational and medical institutions are represented in Dubai. In this emirate there are the perfect conditions for receiving educational and professional skills qualifications.

The system of taxation in the United Arab Emirates is quite simple and very attractive for business. The procedure of getting tax resident status is absolutely simplified. In order to confirm the residential status in the UAE it is possible to obtain the particular certificate confirming tax residency in the country.

It is necessary to note, that all the actions in respect to obtaining the United Arab Emirates tax resident status registration are fully compliant with standards and norms of the international law.

At the same time, Dubai has the very favourable location in contrast to other tax effective jurisdictions, most of which are located on exotic islands at the large distance from global business centres. That is why, when living in Dubai, you have the possibility of carrying on business in diverse countries. Moreover, Dubai is extremely challenging and attractive for business.