Why Dubai keeps attracting investors
The tax appeal is straightforward: 0% personal income tax, 9% corporate tax only on profits above AED 375,000 (around €95,000), and 5% VAT. There is no tax on dividends or wealth.
Add to that an environment designed for foreigners: in free zones you can own 100% of the company without a local partner, with a fast licence and free repatriation of capital.
Free zone or mainland: where to set up the company
Free zones allow 100% foreign ownership, exemption from import and export taxes, and a flexible business address (flexi-desk). They are the standard option for operating outside the UAE or providing services.
The mainland is designed for selling within the local market and bidding for public contracts. Since the 2021 reform, most activities also allow 100% foreign ownership, with no need for a local partner.
What it costs and what taxes your company pays
Setting up in a free zone or mainland is quoted on a bespoke basis, with taxation and accounting included in the plan. The incorporation period is 1 to 3 weeks.
On taxes, the company pays 9% corporate tax only on profits above AED 375,000, and 5% VAT. The shareholder pays no personal income tax: there is no personal income tax in the UAE.
Residency and visas for the investor
Your company allows you to apply for residency (investor visa) for you and your family. It is not an automatic procedure: you must meet free zone or mainland requirements, such as the business address and the licensed activity.
With valid residency you can open accounts, rent housing and, if it makes tax sense for you, move your residency to the UAE. That decision depends on your personal situation and the treaties with Spain.
The Dubai golden visa
The golden visa is a long-term residence visa, valid for 10 renewable years, aimed at investors, entrepreneurs, qualified professionals and talent. It can be obtained by investing in real estate or setting up a company that meets the thresholds.
Unlike the standard visa tied to a company, the golden visa does not depend on maintaining employment or an active licence on an ongoing basis, which provides greater medium-term stability.
Steps to invest from Spain
The process is completed in weeks: choosing the jurisdiction, reserving the trade name, applying for the licence, processing the residence visa and opening the corporate bank account. Everything can be done remotely, with a local adviser who speaks Spanish.
Before you start, decide whether you will operate inside or outside the UAE: that answer determines free zone or mainland and affects the cost of the business address and the licence.
