The UAE as the destination for offshore companies and investments


Of all jurisdictions in the world, it is the UAE that offers the most favorable terms for offshore companies and investments.

Advantages of UAE

Taxes: The UAE recently took first place in the World Bank’s Payments Taxes report. Business in the UAE is still subject to a zero tax rate on personal and corporate income, as well as on exports and imports. The only tax that is levied in the UAE is the VAT of 5%, which was introduced in 2018.

Economy: The UAE is the second largest economy in the Arab region after Saudi Arabia, while being actively diversified. The Vision 2021 strategy includes development in several areas, including the small and medium-sized business and production sector, as well as significant investments in high technology, in particular renewable energy sources and aviation.

Doing Business Rating: The UAE is constantly appearing at the top of the World Bank’s Doing Business Doing Business, which lists 11 key mechanisms that make it easier to open a company and conduct business. In 2018, the UAE took the 21st place on a global scale and became the leader among the Arab countries – for the fifth consecutive year. Jurisdiction received high marks thanks to minimal taxes and audit requirements, as well as the absence of bureaucratic obstacles.

This means that it is really easy to open a company in the UAE, sometimes even without coming to the country. The process can be completed during several weeks. Only a package of basic documents will be reqiured.

Investors usually look for investment opportunities providing a stable high return. Offshore investment in real estate is becoming increasingly popular.

The UAE does not levy income tax on rental income and capital gains tax. That is why the country is considered to be one of the best in the world for offshore investment in real estate.

It is also very important to invest in a country with a strong but flexible system of legal regulation in real estate investment. RERA (Dubai Real Estate Regulatory Authority) provides a legal framework that protects the interests of investors.

Investors choose strategically important countries that are recognized as safe for real estate investments. The UAE is among the most popular places for offshore investment in real estate. Appropriate government structures protect investors’ rights, and Dubai takes 7th place in the world for foreign investment.

So, investing in a secure country with an established social and economic position and a “safe harbor” reputation, such as the United Arab Emirates, is considered a safe investment option.