In short: Germans who set up a company in Dubai or emigrate there benefit from attractive tax rates — but must keep German law in mind: exit taxation under Section 6 AStG for GmbH shares, the “place of management” under Section 10 of the German Fiscal Code (AO), and the annual proof requirement as a Qualifying Free Zone Person. AK Venture Path supports the operational formation on the ground, while PSK Steuerberatung handles the tax structure in Germany — from a single source.
Why emigration to Dubai reached a new high in 2025
In 2025, Germany recorded a net migration loss of around 97,000 of its own citizens — the highest figure since records began in 2005, and significantly more than the previous year (2024: around 81,000 people), as the Federal Statistical Office reported in June 2026.1 Dubai is one of the most sought-after destinations for entrepreneurs and the self-employed: low corporate taxes, no personal income tax, and a pragmatic environment for company formation. However, anyone planning this step should not focus only on sunshine and tax rates, but keep the legal and tax pitfalls in view from the outset. This is exactly where AK Venture Path comes in, in cooperation with German tax advisor Paul Simon Kasper and PSK Steuerberatung.
Why use an agency at all?
Many prospective entrepreneurs dealing with a company formation abroad for the first time initially think: this sounds manageable, I can save on agency fees. A company in Dubai can indeed be set up on your own — but this is rarely cheaper in the end.
The comparison with building a house fits well: you generally don’t build without an architect, but rely on expert advice so that, in the end, no pipes end up in the wrong place. The same applies to a company formation in the UAE — small mistakes with authorities, missing documents, or the wrong free zone choice can become expensive.
An experienced agency such as AK Venture Path, working together with PSK Steuerberatung, helps to avoid exactly these kinds of mistakes:
- Knowledge of the relevant authorities and the right way through the bureaucratic process
- Checklists of the documents to provide, so nothing is forgotten
- Joint selection of the right company type and free zone for your individual goals
- Complete preparation of all formation documents
- Support with the often lengthy account opening process, through established banking partners
As an agency, we receive discounts on certain government formation fees, which are passed on to clients 1:1 — which significantly offsets the supposed extra cost of using an agency. On top of that, unnecessary additional costs from longer stays on the ground, multiple trips due to missing documents, and time lost searching for the right authority or in bank meetings can be avoided this way. You can find a structured process for your company formation in Dubai in our services overview.
Do you need a local partner?
No — even as a foreigner, you can set up a company in Dubai that belongs to you 100%, without a local partner. What matters, however, is keeping the tax rules in view, in particular the so-called “place of management”.
Under Section 10 of the German Fiscal Code (AO), the place of management is located where the decisive entrepreneurial will is formed and where the decisions necessary for ongoing management are actually made. If this place, in practice, remains in Germany — for example because the founder continues to run day-to-day operations mainly from Germany — German tax liability can arise for the income of the foreign company, even though the company is formally registered in Dubai. This is exactly what needs to be avoided through a clean structure and genuine substance on the ground.
Bank account in the UAE: process and interest
Once the company has been formed, it is generally possible to open a bank account for the company in the UAE. These accounts are usually held in dirhams or US dollars; EUR accounts are also available. The opening process is considered complex and time-consuming, especially for people who do not live locally — good contacts with major banks help to significantly speed up this process. We have summarised the individual steps and documents in detail in our article on opening a bank account in Dubai.
One point that pleasantly surprises many entrepreneurs: “negative interest” or custody fees, as were temporarily common in Germany, are unknown in Dubai — depending on the account currency, there is even positive interest on balances.
Saving tax with a company in Dubai
The central question is usually: can you actually save tax with a company in Dubai? In principle, yes — but the legal position has become more nuanced since the introduction of corporate tax in 2023. The 0% tax rate still exists in the UAE, but it is no longer automatic; instead, it is a status that must be earned and proven afresh every year as a so-called Qualifying Free Zone Person (QFZP).2 Anyone who meets these conditions can continue to benefit from a very attractive tax burden — but getting there requires a well-thought-out structure from the outset. A complete overview of corporate, turnover, and capital gains taxes is provided in our article on taxes in Dubai: a comprehensive overview.
Keeping exit taxation under Section 6 AStG in mind
For German entrepreneurs holding shares in a corporation (e.g. a GmbH) as private assets, exit taxation under Section 6 AStG is additionally relevant. It applies if the person was subject to unlimited tax liability in Germany for at least seven of the last twelve years and held at least 1% of the shares in a domestic or foreign corporation during the last five years. In this case, the tax office assumes a notional sale of the shares at market value on the day of emigration; the resulting gain is taxed under the partial income procedure — effectively around 28.5% of the increase in value. Since 2025, this rule has also covered ETF and fund units held as private assets, provided their acquisition cost exceeds €500,000 (Section 19(3) of the German Investment Tax Act, InvStG). Careful planning before emigration — regarding valuation, instalment payment, or shareholding structure, for example — can make a substantial financial difference here. We explain in detail what structuring options exist to avoid or reduce this in our article on avoiding German exit tax, as well as on the PSK services page on exit taxation.
| Topic | Relevant rule | Practical consequence |
|---|---|---|
| Tax status of the company | Qualifying Free Zone Person, to be proven anew each year | 0% only with a clean structure and substance |
| Place of management | Section 10 AO | Day-to-day operations must not, in practice, be run from Germany |
| Shares in a corporation | Section 6 AStG | Exit taxation at ≥1% shareholding and 7 of 12 years of unlimited tax liability |
| Fund units as private assets | Section 19(3) InvStG | Covered since 2025 from €500,000 in acquisition cost |
Frequently asked questions about company formation in Dubai
Can I own a company in Dubai 100% myself as a German? Yes. In most free zones and in the mainland area, a local partner is no longer required following the reform of company law. What matters is that the actual place of management does not, in practice, remain in Germany.
Do I automatically pay 0% tax with a Dubai company? No. The 0% rate only applies to qualifying income of a Qualifying Free Zone Person and must be met and proven afresh every year. Without a suitable structure, the standard 9% corporate tax rate applies above the threshold.
Does moving to Dubai automatically trigger exit taxation? Only if you hold shares of 1% or more in a corporation and were subject to unlimited tax liability in Germany for at least 7 of the last 12 years. Without such shareholdings, Section 6 AStG does not apply.
How long does it take to open a company account in Dubai? Depending on the bank and business model, between a few days and several weeks. Established banking contacts and complete documentation significantly speed up the process.
Conclusion: individual advice is essential
The information provided here gives an initial overview but does not replace personal, individual advice. As tax advisor Paul Simon Kasper puts it: “Whoever has the duty to pay taxes also has the right to save on taxes.” For a tailored strategy on company formation, account opening, and tax structuring, AK Venture Path and PSK Steuerberatung are happy to help — arrange a free initial consultation now.
Legal status as of: 08/2026. This article does not replace individual tax advice.
Paul Simon Kasper, Tax Advisor and Foundation Consultant, Owner of PSK Steuerberatung
Paul Simon Kasper supports German entrepreneurs with the tax-compliant structuring of company formations in the UAE — from exit taxation under Section 6 AStG to the question of the place of management. Learn more about him on LinkedIn and at steuerberatung-psk.com/uber-uns.
1 Federal Statistical Office (Destatis), press release No. 184 of 09/06/2026, net migration in 2025 declined significantly to 235,000 people.
2 UAE Federal Tax Authority, Corporate Tax Guide on Free Zone Persons.
