If you want to take the plunge and optimize your taxes by setting up your offshore company in Dubai, you must first carefully choose the jurisdiction in which you will register your company.
Not all territories offer the same guarantees. It is therefore advisable to compare their reputation, economy, tax system, and level of international cooperation before making a decision.
Criteria to consider before choosing
Avoid blacklisted jurisdictions
It is recommended to check the territory's international reputation and avoid jurisdictions placed on blacklists or considered non-cooperative.
Choose a country with a real economy
Favor a stable, strong, and sustainable economy rather than a region relying solely on attractive tax policies.
Prioritize stability
Economic, political, and banking stability are among the factors to consider before registering an offshore company.
View the international image
A good international reputation can facilitate relations with banks, partners, and government authorities.
Choose a tax haven that is not on the blacklist
Not all tax havens are equal. Some territories offering tax exemptions are viewed more favorably than others by the European Commission and the OECD.
The Virgin Islands and the Cayman Islands are among the jurisdictions to avoid. Delaware, in the United States, is also in its government’s crosshairs.
Attractive taxation is not enough: the penalties or difficulties resulting from a poor choice may be greater than the benefits hoped for.
Establish your offshore company in a country with its own economy
Creating an offshore company in a tax haven can involve risks if all the criteria are not taken into account. If the goal is to benefit from favorable taxation, choose a jurisdiction with its own stable, strong, and sustainable economy.
The pitfall may be choosing a country such as Luxembourg, considered a tax haven by many, but without an economy comparable to that of the United Arab Emirates.
The United Arab Emirates have had a rapidly growing economy for many years and are an attractive jurisdiction for offshore companies.
Why choose Dubai?
Economic stability
The United Arab Emirates has a strong and stable economy, allowing an international company to be established in a real business environment.
Bank secrecy
Banking secrecy is one of the advantages associated with establishing an offshore company in Dubai.
Tax benefits
Dubai offers very low taxation, no certain taxes and duties, as well as no withholding tax.
Relations with the OECD
Dubai maintains good relations with the OECD and has a stronger international image than several jurisdictions traditionally associated with tax havens.
Dubai, G20 and the fight against tax havens
Choosing a jurisdiction takes place in a context where the G20, the OECD, and other institutions are stepping up their fight against tax havens and non-cooperative jurisdictions.
To protect your company, choose a jurisdiction with a real economy and use legal and transparent means.
To go further
Merritt at your service
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