For German founders, Mittelstand exporters and freelancers

Set Up Your UAE Business from Germany: Costs, Tax and Compliance

Compare live UAE setup packages, see how German and UAE tax rates differ, and follow the residence, exit tax and legalisation steps in the right order — before you pay anyone.

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  • AED 4.888

    Lowest listed free zone package, starting from

  • 0%

    UAE personal income tax on salary

  • 100%

    Foreign ownership in free zones

Germany vs UAE: headline tax rates

The UAE's 9% corporate tax applies only above AED 375,000 of taxable profit. Whether you still owe German tax depends on your residence and where the company is managed, not on where it is registered.

ItemGermanyUAE
Corporate tax15% corporate tax plus solidarity surcharge and municipal trade tax (roughly 30% combined)0% up to AED 375,000 taxable profit, 9% above; qualifying free zone income may be 0%
Personal income taxProgressive rates up to 45%, plus solidarity surcharge where it appliesNo personal income tax on employment income
Indirect taxVAT (Umsatzsteuer), 19% standard rateVAT, 5% standard rate
Tax treatyThe former Germany–UAE double tax treaty expired at the end of 2021Check current treaty status with a German Steuerberater

Legalising German documents: the usual steps

  1. 1. Notary or issuing authority

    Documents are signed or certified by a German notary or the issuing office.

  2. 2. German pre-certification

    The competent authority (for example the Landgericht for notarial documents) confirms the signature.

  3. 3. UAE Embassy in Berlin

    Germany and the UAE do not use apostilles with each other, so the UAE Embassy legalises the document.

  4. 4. UAE MOFA

    Final attestation by the UAE Ministry of Foreign Affairs once the documents arrive in the UAE.

Moving from Germany: residence, exit tax and banking

  • German tax residence follows your home (Wohnsitz) or habitual abode. Register your departure (Abmeldung) and avoid keeping a home available in Germany.
  • German controlled foreign company rules (Hinzurechnungsbesteuerung) can tax low-taxed passive income of a UAE company you control. Agree the structure with a Steuerberater first.
  • UAE banks ask for your trade licence, proof of address, source of funds and a business plan. Our bank account guide explains what helps approval.

Read the UAE business bank account guide and the UAE Golden Visa guide.

Where German founders usually set up

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Questions German founders ask

Can a German citizen own 100% of a UAE company?
Yes. Free zone companies allow 100% foreign ownership, and most mainland activities now do too.
Do I stop paying German tax when I move to Dubai?
Only if you give up German tax residence. Keeping a home available in Germany can keep you resident. Deregister (Abmeldung) and take advice from a Steuerberater.
Is there an exit tax when leaving Germany?
Yes. Under section 6 of the Foreign Tax Act (AStG), moving abroad can trigger tax on unrealised gains in qualifying company shareholdings. Plan this before you move.
How much does a UAE free zone licence cost?
Live packages on Business Setup AE start from AED 4.888. Your final price depends on activity, visas and office space.

Official sources

General information, not tax or legal advice. Rates checked October 2026.

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