Get out of the rut, escape the bad weather and into the world of the rich and famous – more and more Germans are emigrating or at least moving their jobs abroad. The reasons can be private, but also determined by the business carried out so far – for example, if the employer offers a job abroad.
The most popular workplace destinations continue to be Austria, Spain and Switzerland. Due to the economic growth and the favorable tax situation, however, Dubai comes more and more into the focus of German employers and employees. Dubai is located on the Persian Gulf, is the capital of the Emirate of Dubai and belongs to the – 1971 founded – United Arab Emirates (UAE). Those who intend to work in Dubai or to establish a company there, must make some preparations and inform themselves about the peculiarities of the metropolis with millions of inhabitants.
Entry Requirements for Dubai
Although you might not think so, the entry requirements for Dubai are simpler than you might think. Before you accept a new job in Dubai, you should familiarize yourself with the country – quasi a look& start See Trip. All you need is a visitor visa.
- usable by German citizens
- valid for 90 days
- Passport required / valid for at least six months
- Visa will be issued upon arrival in Dubai
- Guarantor is required (hotel, company, UAE citizen)
When applying for a work visa for Dubai, there are some changes since February 2018. With the submission of the application for the visa, a police clearance certificate must now also be submitted. The certificate of good conduct is issued in Germany, but must be certified by the UAE immigration authority upon arrival in Dubai. Before entering the country, you must already have a concrete job offer, or better yet, a signed employment contract in your pocket. Your employer then acts as a sponsor, without whom working in Dubai is not possible.
Living in Dubai
In addition to the new job, the living and private environment in Dubai must also be right – especially if you are moving with the whole family. Right away, you can put the idea of a cute home with a front garden and pool to rest in Dubai. In the United Arab Emirates, people think and build bigger and more ostentatiously – the rental costs are correspondingly high. A 2-room apartment is available – depending on location and furnishings – from 100.000 Dirham (AED), that is about 24.000 Euro per year or. 2000 Euro per month. So that you can live later in a way that suits your personal and financial expectations, make sure you find accommodation in Dubai in good time. Your employer will also support you in this point.
Tip: In Dubai – at least in business – English is spoken predominantly. Without appropriate good to very good language skills, you will have a hard time finding a job in the city of skyscrapers.
Working in the tax paradise Dubai
Once you have cleared the formalities with the authorities and your employer, you can enjoy the benefits of your new job. Despite all the amenities Dubai offers, work must be done here as well! As far as income is concerned, this depends of course on your new job, but on average it is about the same as in Germany. However, there are no collective agreements etc. and the best news, no taxes either. What is stated as gross salary in the contract also ends up in your account at the end of the month. Those who go to Dubai as expats sometimes enjoy further advantages. These benefits can be included in the employment contract, but are not obligatory for the employer:
- Organization of the move (usually handled by expat stations)
- Flight home once a year
- Special leave on religious holidays
- Assumption of costs for medical specialists and physiotherapy
- Partial or complete coverage of school fees
- Contribution to rental costs
- Company car or mobility allowance for public transport
- Financial support for the expatriate’s spouse (z. Ex. for further education or language courses)
Tax benefits for companies
Not only employees, but also companies benefit from the tax advantages in Dubai. For example, there is no company and corporate tax (except oil and gas industry). It does not matter whether the company is founded directly in Dubai or in one of the free trade zones. Advantage when founding a company in a free trade zone: The entrepreneur remains 100 percent owner of his founded company and does not need a sponsor who is not only a supporter but also a shareholder with 51 percent outside the free trade zone.
50 years tax-free!
In addition, tax exemption is guaranteed for 50 years if the company is established in a free trade zone! This means you don’t have to pay business, corporate, property and trade tax for at least 50 years.
Costs for setting up a company in Dubai
With regard to the costs, there are first of all two variants: 1. You take over an existing company, then primarily its purchase price will be the biggest cost block. Or 2. They newly found. Then you need to budget for costs of incorporation documents, translation services, office rent (mandatory) and the usual license fees in Dubai.
The last two items in particular are costs to be calculated annually. With regard to office rent, I would like to refer again to the above-mentioned website all-realestates.com, which is very useful. For the license fees due annually, at least 45.000 Dirham to be included. This corresponds to approx. 10.500 €.