One World CEO Anastasia Barna discusses the inherent risks of the “financing scheme” within the Caribbean Citizenship by Investment (CBI) real estate option.
Short Guide to Taxes in the UAE
One of the main advantages of the UAE is the absence of direct taxes on personal and corporate income in most emirates. Thanks to this system, entrepreneurs and investors are able to retain a large part of their income.
Let's have a look at the main tax rates for legal entities and individuals.
For legal entities:
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Corporate tax
A significant advantage of Dubai is that there is no corporate tax for most companies.
However, the UAE is introducing a business tax of 9% from 01 June 2023. Companies will have to pay income tax if the company's income exceeds AED 375,000 ($102,000). However, the company is exempt from this tax if the profit is below this amount.
Government entities and residents of free trade zones are excluded from the tax reform. -
Customs duties
The Emirates provides an efficient customs duty system, especially for companies registered in Free Trade Zones. This reduces the cost of importing and exporting goods, contributing to improved competitiveness and business attractiveness. -
VAT
The Value Added Tax (VAT) introduced in 2018 is 5%. It is paid by companies whose annual profits exceed AED 375,000. Companies are required to pay VAT on most goods and services, with certain exceptions.
Double Taxation Avoidance Agreements
Dubai actively pursues double taxation avoidance agreements with various countries, providing a sustainable framework for international business relations and protecting companies from unjustified double taxation.
For individuals:
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Income tax
One of the main advantages of Dubai is that there is no income tax for most residents. -
Property tax
Property owners in Dubai are exempt from property tax. -
Consumption tax
There is a consumption tax known as "Excise Tax" within Dubai's tax system. This tax is levied on certain goods, such as tobacco, energy drinks and sweets, and amounts to an additional 50% of their value.
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Four of five Caribbean countries with CBI programs, namely Antigua and Barbuda, Grenada, Dominica, Saint Kitts & Nevis, signed a memorandum of understanding (MoU) to set the minimum threshold to $200,000 and collaborate on specific aspects.
With Turkiye you will have an opportunity to come one step closer to the business and real estate market in Eurasia, that is full of entrepreneurial opportunities and innovative ideas. The country boarders with a great range of countries, thus, suggesting new opportunities to people for efficient entrepreneurship and business development.