Following the article published on the
IREF website concerning the strengthening of the exit tax for French citizens, we are questioning the article’s final sentence: “Another consequence of this type of measure is that it encourages young entrepreneurs to settle in countries other than France from the outset.”
In addition to being relevant given the tax hell France has become, this statement makes us wonder whether Dubai could be a destination for a young entrepreneur.
Why Does Dubai Attract French Entrepreneurs?
Dubai is generally considered unsuitable for a young entrepreneur because of the cost of living and a certain amount of administrative complexity involved in residing and working there.
But Dubai offers so many advantages (low taxation, location, a developing region, sunshine all year round) that it is worth asking whether Dubai is suitable for a young entrepreneur.
The first problem Dubai presents for an entrepreneur is the cash required to move there because:
- Setting up a company is “expensive” for French citizens in Dubai;
- You have to pay to obtain a residence visa in order to live in Dubai;
- The cost of housing there is high.
What Options Are There for Settling in Dubai?
In this article, we therefore suggest considering how to reduce the total cost of moving to Dubai.
First of all, the main issue is obtaining a residence visa. French expatriates have 2 solutions for this:
1/ By purchasing
real estate in Dubai
2/ By starting a professional activity
Purchasing real estate is not the focus here, as it requires funds. The second solution is therefore to start a professional activity, which will make it possible to obtain a residence visa and settle in Dubai. Here again, there are 2 solutions for settling in Dubai:
1/ Apply for a
Freelance permit in Dubai;
2/ Set up a
company in Dubai.
Applying for a Freelance permit is the fastest, simplest and least expensive solution (from AED 5000 for 1 year). However, this solution still has disadvantages for French citizens in Dubai:
- The list of available activities is limited
- Unlimited liability
- No legal personality
Nevertheless, it remains an ideal solution for residing in Dubai and starting a professional activity.
Setting up a company will require more funds (around AED 20 000 to be paid out at the outset).
For the residence visa, you should then budget approximately AED 6000, also payable immediately even though it is valid for 2 years of living in Dubai.
Once your Freelance permit / company license and residence visa (followed by your EmiratesID) have been obtained, the question of housing will quickly arise.
How Can You Find Accommodation and Get Around the Emirates?
There are, of course, shared-accommodation options, but the cheapest private accommodation for living in Dubai will cost approximately AED 40 000 per year. It is customary to pay it all at once… But this has become increasingly negotiable since rents in Dubai increased. It can be considered possible to pay quarterly, or AED 10 000 per quarter.
You will then need to consider purchasing a car (AED 50 000 on average for a used vehicle that is not too old) or taking a long-term rental (AED 1500 per month).
Therefore, assuming a low estimate, the cost to budget for living in Dubai is approximately AED 45 000, or around EUR 11 000. Obviously, costs increase exponentially if you come as a couple with children, wish to live in a house with a swimming pool, or set up a company in a “prestigious” Register. But the important point of this article is that it is possible to begin an expatriation to Dubai with “only” EUR 11 000. This is, of course, a low average, but it is possible for French expatriates!
For years, we told our prospective clients that Dubai was not a destination for young entrepreneurs, as Dubai wanted to attract people who already had a professional activity and money… We now believe that saying this is a mistake, given how high the barriers to succeeding as an entrepreneur in France have become. And if you succeed in France, it will now be very difficult for you to expatriate (exit tax, worldwide income taxation, etc.). As for us, our firm is happy to answer all your questions to validate your project without charging you the slightest fee. So do not hesitate to
contact us!
Merritt Group
