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If you are thinking of opening an online business, Dubai is one of the most attractive destinations. Online businesses have a great advantage over physical companies: flexibility and decentralization. In addition, Dubai offers unique benefits for entrepreneurs looking to establish themselves in a favorable tax environment.
Opening a company in Dubai gives you great mobility advantages. During the first year, you need to reside in the country for six months, but then you'll only have to be there for three months or less to maintain your tax residency. However, you must not spend more than six months in another country to keep this status.
One of the biggest benefits of having a company in Dubai is the reduction in taxes. For example, VAT in the UAE is 5%, but if your customers are outside the country, you won't be required to pay this tax. This is especially useful if you have clients in Europe or collaborate with professionals in Spain or other countries.
In addition, social security payments are not required in Dubai for employees outside the Gulf Cooperation Council (GCC), nor for those who work within the country, since they have private insurance. This means that your employees will receive their full salary, without deductions, allowing you to optimize labor costs.
One of the most attractive reasons to set up an online business in Dubai is the tax exemption on the first 750,000 euros invoiced. This benefit applies whether you operate as a freelancer with a professional license, or if you have a registered company. By having both licenses, you can take advantage of a combined limit of up to 1.5 million euros without paying taxes.
Thanks to the small business relief policy, if your business bills less than 1.5 million euros, you will be exempt from taxes until December 31, 2026, making Dubai an ideal destination for entrepreneurs looking for a favorable tax environment.
One of the most common profiles among our clients in Iberian Management are infoproducers, professionals who create and sell digital products such as courses, ebooks or webinars. Although infoproducers in Dubai may not be able to optimize labor costs in the same way as other sectors, they do enjoy a great tax advantage.
By having minimal operating costs and generating revenues primarily through launches, infoproducers can benefit from tax exemption. This means that practically everything they bill is converted into net profit. In Dubai, you can earn up to 1.5 million euros clean if you use a combination of freelancer and company licenses, thanks to the small business relief policy.
At Iberian Management, one of the most frequent types of clients we advise are online marketing agencies, because they take advantage of Dubai's tax advantages. Invoices issued to customers outside the Emirates are exempt from VAT, reducing tax costs.
In addition, there is no need to pay social security or wage taxes to workers outside the Gulf Cooperation Council (GCC), or to employees in Dubai, who have private insurance. This makes it possible to optimize labor costs and increase the profitability of agencies, making Dubai an ideal place for international expansion.
Consultants in Dubai enjoy a very favorable tax environment, similar to that of other professionals. Thanks to small business relief, they can generate large profits, especially when their income comes from commissions. In these cases, invoiced revenues are practically net, allowing most of the profits to be converted into direct income, with hardly any tax burdens.
This scheme makes Dubai an ideal destination for consultants looking to maximize their benefits and minimize tax burdens.
Trading is one of the main reasons why many professionals move to Dubai. In addition to tax advantages, such as tax exemption for profits of less than 1.5 million euros, Dubai offers an advanced technological infrastructure. The city has high-speed Internet access and secure communication platforms, essential for online trading in real time.
Dubai also has financial free zones, such as the Dubai International Financial Centre (DIFC), where traders can register their companies. These zones offer additional benefits, such as total foreign ownership and the absence of exchange controls, facilitating the transfer of funds and providing an ideal environment for trading in financial markets.
Setting up an e-commerce or dropshipping company in Dubai offers multiple benefits. In addition to tax savings, the geographical proximity to Asia makes it easier to search for suppliers and purchase products on a large scale. This allows companies to access better prices and faster delivery times, optimizing their supply chain.
Dubai has become a key logistics hub, making it a strategic location for operating an e-commerce or dropshipping business, providing competitive advantages both in terms of costs and operational efficiency.
Dubai is a great place for tech startups looking to decentralize or establish themselves from scratch. The city offers a favorable environment with multiple advantages for start-ups, such as the above-mentioned tax incentives and advanced infrastructure. In addition, the facilities for the development and growth of new technological companies are considerable, from access to free zones to support and investment programs.
Establishing a startup in Dubai allows technology companies to take advantage of a dynamic and expanding market, facilitating their development quickly and efficiently.
If you want Gestoria Iberico to study your particular case not only at the tax level but also for your personal interests, contact us for free and you will meet with our advisor Jordi to see what is your best option.
In addition, we will explain to you correctly how you can benefit from small business relife and not pay any taxes up to the first 1.5 M of Euros.
So if you want to contact us schedule a consultation using the button below.
