5 Tax Benefits of Setting Up a Company in Dubai for UK Residents

f you're a UK resident, you've probably thought about how to make your business more profitable and less weighed down by taxes. After all, why wouldn’t you want to keep more of what you earn? Well, there’s a place that can make this possible—Dubai.

Dubai isn’t just about luxury and skyscrapers. It’s fast becoming one of the best places for UK entrepreneurs to set up shop. So, why do so many UK residents flock to Dubai to start businesses? One word: taxes.

Here are 5 tax benefits of setting up a company in Dubai that might just convince you to take the plunge.

1. No Personal Income Tax: Keep What You Earn

Imagine running a business and not having to give up a chunk of your hard-earned income to the taxman. Sounds like a dream, right? Well, in Dubai, it’s real. The UAE doesn’t have personal income tax. That means whatever you earn—whether it's from your salary, your dividends, or any other income—you get to keep all of it. Compare that to the UK, where you can lose up to 45% of your income to tax, and it’s easy to see why setting up a company in Dubai is such an attractive idea.

2. Corporate Tax? Just 9%!

In the UK, businesses are feeling the pinch with a corporate tax rate sitting at 25%. But in Dubai? Corporate tax is just 9%. That’s right—only 9%. This makes a massive difference in how much profit you can actually take home. It’s like getting a 16% boost in your earnings without doing any extra work. If you’re running a successful business in the UK, just imagine how much more money you’d have if you were based in Dubai.

3. Free Zones: Tax Havens with 100% Ownership

Let’s talk about Dubai’s free zones—they’re pretty much tax havens for business owners. Setting up your company in one of these zones means you can enjoy up to 50 years of zero corporate tax. On top of that, you get to keep 100% ownership of your company. No local sponsors required, no strings attached. For UK residents looking to make the most of their business while avoiding unnecessary taxes, free zones are a no-brainer.

4. No Withholding Tax: Repatriate Your Profits Hassle-Free

Here’s a real perk: Dubai doesn’t impose withholding tax on dividends or interest payments. This means you can send profits back home to the UK—or reinvest them in your business—without worrying about extra taxes. In the UK, you might get hit with various taxes when moving money around. But setting up a company in Dubai makes it much easier to manage your profits and use them where they matter most.

5. Zero VAT on Exports: Pay Less, Earn More

VAT is another area where Dubai has the upper hand. While Dubai does have a VAT rate of 5%, exports are zero-rated. If your business is trading internationally, especially outside of the UAE, you won’t be paying VAT on those exports. That’s a game-changer for UK businesses that rely on global trade. More money in your pocket means more room for growth.

So, Is It Time to Make the Move?

If you’re tired of seeing your profits disappear into taxes, setting up a company in Dubai could be the solution you’ve been searching for. Dubai offers tax advantages that can significantly boost your business's bottom line, leaving you with more to reinvest, save, or simply enjoy.

Yes, making a big move like this requires planning. But the rewards? They're well worth it. Contact us today to start the move.