TME Legal
International Tax Law in Dubai
Professional advice on international tax law in Dubai: tax planning, relocation, real estate & corporate structure.
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Despite global economic challenges, Dubai has developed into one of the most attractive business locations and foreign trade partners in the Middle East. Political stability, a diversified economy and a modern infrastructure make the emirate a magnet for investment and growth. At the same time, precise tax planning requires special attention.
For individuals who are moving their center of life to Dubai, as well as for companies that are expanding their activities in the UAE, aspects such as exit taxation, transfer of functions, real estate sales and compliance with the residency criteria are decisive. Only through careful planning can tax risks be minimized and a smooth transition be guaranteed.
TME Legal competently supports you in international tax law in Dubai and ensures that you are legally secure and optimally positioned from a tax perspective.
Our Consulting Services in International Tax Law in Dubai
Companies and individuals operating across borders are often faced with complex tax issues. Our law firm therefore offers you comprehensive advice and customized solutions in international tax law in order to minimize legal and tax risks.
Cross-border tax planning
- Support for investments by domestic companies abroad and foreign investors in the UAE, including suitable financing structures
- Advice on the establishment and structuring of economic activities abroad (with or without own representation)
- Legally compliant structuring of company acquisitions, mergers and restructurings with international relevance
- Ongoing tax advice for international corporate groups and corporations
- Strategic planning of international tax structures for optimal business development
- Advice on the legal particularities of international family businesses
- Review and optimization of existing double taxation agreements to avoid tax disadvantages
- Support in international inheritance cases and succession planning
- Tax advice on the departure of individuals and companies to minimize legal and financial risks
Transfer prices
- Review and determination of transfer prices for cross-border business relationships
- Advice on compliance with the arm’s length principle in transfer pricing
- Preparation and review of the required documentation
- Legal advice on the avoidance and settlement of disputes in the area of transfer pricing
- Prevention of tax adjustments through tax audits
Legal and Tax Consultants
Our Expert Team
Clear answers
Frequently asked questions about
Tax law in Dubai
Does Germany have a double taxation agreement with Dubai?
The previous double taxation agreement between Germany and the United Arab Emirates (UAE) expired on December 31, 2021. An extension or a new agreement has not yet been signed. German citizens and companies based in Germany should therefore carefully examine and plan cross-border tax arrangements in order to avoid double taxation and unforeseeable tax burdens.
Are foreign employees taxed in Dubai?
In the UAE, no tax is levied on the income of natural persons. Foreign employees are therefore not subject to income tax or the associated reporting obligations. This tax framework makes Dubai particularly attractive for highly qualified specialists from abroad.
Are rental income from Dubai taxed in Germany?
Income from letting and leasing is generally subject to the taxation law of the country in which the property is located – in this case Dubai. In Germany, this income would therefore be tax-free.
However, the so-called progression proviso applies: the rental income itself is not taxed, but is included in the calculation of the individual tax rate for the remaining taxable income. This can lead to an increase in the tax rate on other income.
How much tax do you pay in Dubai?
Dubai has a low tax burden by international standards. The corporate income tax for companies is 9%, while the value added tax (VAT) is also moderate at 5%. In principle, no tax is levied on personal income. Likewise, gifts, inheritances and capital gains are generally not subject to taxation.
However, exceptions apply to certain sectors of the economy. For example, banks and companies in the oil and gas industry are subject to special tax regulations, which, depending on the individual case, may provide for tax burdens of up to 55%.
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