Situated in the United Arab Emirates, Dubai has a LOT more to offer than just awe-inspiring architecture and a wealth of shopping opportunities.
In today’s episode, we unpack why a move to Dubai might make a lot of sense for sovereign minded folks seeking to increase their quality of life while decreasing their taxes…
Dubai: an amazing place packed with incredible opportunities…
Dubai is without a doubt one of the most amazing transformation stories of modern times.
It started off as a small town with around 20,000 inhabitants less than 90 years ago, but its fortunes changed with the discovery of oil half a century ago.
Today’s Dubai is a bustling metropolis, teeming with skyscrapers and posh shopping malls. It is also the region’s primary financial hub.
The city serves as a magnet for energetic and hardworking people from all over the world, attracted by its vibrant lifestyle, outstanding business infrastructure and 0% corporate and personal tax rates.
Americans generally will not be able to take advantage of these tax benefits (US taxpayers always remain tax residents of the US, unless they renounce their US passports). But our readers of all other nationalities can absolutely do it (subject to your business being location independent, of course).
Dubai is certainly not the perfect destination for everyone. But for many people, it could tick a lot — if not all — of the critical boxes. Let’s get into the five primary reasons why more professionals, entrepreneurs and digital nomads are choosing to settle in Dubai below…
Reason #1: The tax situation in Dubai
While many of our preferred second residency destinations (including Portugal) offer attractive tax benefits, Dubai is in a class of its own in this regard. The UAE does not have any income tax on a personal level. There is no requirement to even file an individual tax return.
And while each of the Emirates, including Dubai, has the authority to change this policy, none have done so thus far.
There is also no tax on capital gains or dividends.
The situation with corporate taxation is not much different. Most businesses can operate tax-free in the UAE.
So if you’re hailing from countries such as Canada, Greece, Spain, Germany or the Netherlands, becoming a tax resident in Dubai could be a complete game-changer in terms of your ability to build wealth fast.
Provided that you operate your business through one of the UAE’s 45 free-trade zones, the benefits are huge.
These zones offer a no-tax environment, as well as special customs, import and export regimes. (The only tax that may apply is VAT, depending on the nature of transactions you perform.)
Furthermore, Dubai based companies can now be 100% foreign owned. As of June 1, 2021, there is also no longer the need to partner up with a local Emirati; not even for “mainland” businesses located outside the free-trade zones.
Reason #2: Exceptional standards of living
Dubai offers a safe environment and a very high standard of living. The extremely beneficial tax system, personal safety, urban amenities and the government’s efficiency have prompted an estimated 35,000 high net worth individuals (people with a net worth of over $1 million) to immigrate to the UAE in the past 20 years.
Most of them ended up in Dubai.
As a result, the standard of living in the city is generally very high. So whether you’re into culture, tech, supercars, shopping or world-class cuisine, in Dubai you’ll be spoilt for choice.
Reason #3: A super simple residency and business setup process
Resident expats describe Dubai’s government as refreshingly efficient, capitalistic, and entrepreneurial. We recently published a comprehensive Sovereign Confidential case study on one of our Total Access members who made the move there from Greece.
Our alumni found the entire process of starting a company and obtaining a 3-year Investor Visa in Dubai to be incredibly easy and convenient. All the required paperwork is processed in a single government building, where the workers do everything for you — from making copies of your documents, to filling out the forms and taking payments, etc.
And if you don’t want to stand in the same line with everyone else, you can officially pay around $50 and go to the expedited line where you will be served much faster.
IMPORTANT: Don’t count on ever becoming an Emirati citizen though. Emiratis are happy to allow you to live in Dubai… but your stay there is not likely to lead to citizenship or even permanent residency of any kind, no matter how long you live there.
Reason #4: The networking opportunities
If you’re looking to establish your life and business in a place with an “abundance mentality” , then Dubai is it. Its energy, affluence, and excellent networking opportunities for entrepreneurs, professionals and digital nomads is truly outstanding.
If being surrounded by like-minded, successful people hailing from across the planet is important to you, Dubai can offer this in abundance.
Reason #5: Personal freedom during Covid times
The Dubai government’s response to Covid has been described as “night and day” compared to that of European countries.
There were around ten days in April of 2020 when the government shut down the country almost entirely, but after that, strict requirements were lifted.
And since the summer of 2020, there has never been another lockdown in Dubai — life continues more or less as usual.
Dubai’s economy, in particular, is very dependent on tourism.
So Dubai couldn’t stay shut to tourism for too long during COVID-19.
Currently, Dubai welcomes most tourists and business travelers alike and western citizens do not require a visa to enter the country. (Check your nationality’s requirements here.)
Contemplating a move overseas?
Discover all your best residency and citizenship options — with step-by-step guidance on how to apply — by joining Sovereign Confidential.
SOVEREIGN CONFIDENTIAL is the most comprehensive international diversification service on the planet. Sovereign Confidential members benefit from our Monthly Letter series, covering a range of mission-critical topics, including:
- The best options for second residency and citizenship — potentially for next to nothing
- How to legally and significantly reduce your taxes
- How to pass 100% of your estate to your family — tax-free
- How to create a firewall around your assets — and especially your home…
Sovereign Confidential Members also benefit from our extensive rolodex of vetted lawyers and service providers. Our trusted contacts in each of these countries can help you determine your eligibility for their second residency and citizenship programs.
The bottom line
In the last decades, Dubai truly became a “place to visit before you die” — fascinating, captivating, and truly inspiring to behold. And even if you don’t end up considering moving here, we can highly recommend traveling there at least once in your lifetime…
Yours in Freedom,
Team Sovereign Man
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