Reliable and independent information guide
The best solution for your personal business

Tax-free business opportunities offered by the UAE

Modern progress and achievements of civilization have provided the humanity with unlimited possibilities in various areas. The entrepreneurial and economic activities, at the aim of gaining certain profits, have not become an exception. Fortunately the modern market is ready to offer the necessary tools and opportunities for creative self-realization of the active and mindful   part of the population.

Typically, countries publicly announce their support to the small business, but in practice everything is not so simple. The main difficulty for small business remains the excessive, for a new business, tax load. According to the independent experts, the high tax rate is a major obstacle for growth and active business development.

The domestic business and the examination of the alternative jurisdictions

The existing practice shows that the entrepreneurs and businessmen tend to abandon questionable jurisdictions. Business, which is created under the threat of state restrictions under the unfavorable tax climate, has no long-term prospects. More and more businessmen pay their attention to the other countries, which are more favorable for business.

The advantages of the Eurozone for business, what is the essence...

Despite the fact that countries of the EU are able to provide private business with the relative stability and opportunities for development, there are also certain disadvantages. First of all, these include relatively high tax rates, and also an increased attention to the business from the fiscal and regulatory authorities. These issues are especially relevant for the representatives of small and medium business, which are under the additional pressure in the surroundings of high competition.

When planning a foundation of a business or a career in Europe, the person should understand that in the case of availability of a status of a tax resident under the income taxation approach, the progressive scale of the total income of the natural person is used here. If to proceed from the official statistics, we can say that the lowest income tax rate in the Eurozone is about 25%. On the territory of the each single state such rate can reach from 30 to 52%.

Among the European countries, which apply the highest rate of income tax, the following jurisdictions can be singled out:

  • Germany: the income tax rate ranges from 14% to 45%;
  • France: an average percentage of income tax is about 45%;
  • Austria: fluctuations in rates range from 36% to 50%;
  • UK: an average rate is 45%;
  • Sweden: fluctuations in rates ranged from 32% to 57%;
  • The Netherlands: fluctuations can range from 37% to 52%.

Among the countries with a minimal tax rate, the following member states of the EU can be singled out:

  • Poland: the income tax rate can range from 18% to 32%;
  • Romania, Hungary: tax rate is 16%;
  • Lithuania, Czech Republic: tax rate is 15%;
  • Bulgaria: an average income tax rate is 10%.

As to the income taxation of the enterprises and companies, one can cite the following figures:

  • Cyprus, Bulgaria: corporate tax rate is 10%.
  • Germany: corporate tax is 15%;
  • Sweden: corporate tax rate is 22%;
  • The Netherlands, Austria: tax rate is 25%;
  • France: tax rate is 33,3%;
  • Belgium: the rate may increase to 40%;
  • Malta: tax rate can be up to 35% of the income.

Besides, one should not lose sight of the so-called information "cap" of the banking institutions. All bank and credit institutions, which operate in Europe, control their clients strictly and work on the principle "know your client". Long established international practice of sharing information about clients, company executives,  shareholders, about the source of funds, credit histories etc. exists already for a long time. Besides all this is often carried out without notifying the clients themselves, what can not satisfy many entrepreneurs and investors.

Taxes are the main source of the country budget for the countries of the EU. That is why there is a strict attitude towards the financial component of the foreign business. Thus, we see that Europe is unfortunately not ideal in terms of building and developing a profitable business.

But still, businessmen also have the opportunity to create a completely tax-free business and not to attract too much interest from the fiscal and regulatory authorities. If you wish to have a business without any complications with the financial institutions and high rates of profitability, then see in details the United Arab Emirates.

United Arab Emirates: an optimal tax haven

More and more investors and entrepreneurs around the world discover the jurisdiction of the United Arab Emirates. Today, probably there is no person who has not heard about the incredible economic growth and rapid development of the country. Every year the large-scale ambitious projects, which impress with the magnificence the entire planet, are implemented on the territory of the UAE.

In terms of creating a business the main advantage of the jurisdiction of the United Arab Emirates is the fact that the state is not included into the "black list" of the countries, which contribute to the money laundering. Private business, in the UAE, carries out its economic and commercial activities legally and solely on the legal grounds. The international experts have already recognized such a scheme of building relationships between the private business and government as a transition to a new level of civilized market relations.

The system of state management in the UAE allows companies to make profits and to develop their business without the excessive government and financial control. The government of the United Arab Emirates cooperates actively with the international organizations, which resist the financing of the international terrorism and money laundering of criminal origin.

The UAE: opportunities and prospects of the growth for business

Registration of a company in the UAE will allow company owners and members of their families to obtain a residence visa for the legal stay in the territory of the country. Depending on the carrying out business activities, you can register a local or an international company in the territory of the specialized economic zones with the special economic status.

The government policy of UAE is aimed at the feasible support of the private business and provision of the most comfortable conditions for the economic and commercial activities. The entrepreneurs and the investors from abroad can count on the legal support and optimization of business to the existing standards.

Real estate as the main investment tool

Taking into account the rapid economic growth of the country, potential investors from all around the world began to show the great interest in the acquisition of the real estate in the UAE. Observing the increasing demand, the Government of the United Arab Emirates has taken a number of counter measures and actions. If formerly the real estate was not available for the foreigners, then recently a lot of Arab principalities have allocated special areas, where the foreign citizens may acquire the real estate into the unlimited ownership.

Today, the foreign citizens may buy either land lots for investment construction or finished constructions. Moreover there is a possibility of obtaining a real estate loan linked with the purchasing the real estate. The rate of the bank will be pleasantly surprised for you, because it is at the average 5% per annum. If the foreign citizen acquires a real estate of the value from 1 million Dirhams, he is granted a two-year residence visa, which may be renewed for a similar term.

Both business and all the real estate transactions are exempted from taxation. Wages of the natural persons are also not subject to the income tax. For the company it is necessary to obtain a resident status in order to optimize the taxable base at the international level.

Business in the UAE - is the absence of taxation, transparent conditions for carrying on business, modern infrastructure, favorable location of the country in terms of protecting the property rights and investment assets. You can live and carry on business in the UAE and no longer worry about the future of the company. Use the United Arab Emirates for the development of the new markets and for the expansion of the existing business.

Receive Free Advice

Send your question to receive free advice from one of the international experts

Your name:*
Your Message:*