Taxes for legal entities or companies

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Although they don't call it a tax, Dubai does charge a municipal fee on residential rentals. This charge is 5% of the annual rent and usually appears on utility bills. For example, if you rent an apartment for AED 00,000 ($27,200) per year, you'll pay an additional AED 5,000 ($,360) as a municipal fee.

For those looking to buy a property in el salvador phone number library Dubai, there is a 4% transfer tax on the value of the property. This amount is paid at the time of purchase and is usually split between the buyer and the seller. While this is competitive with other countries with higher rates, there are places where this tax burden is lower or even non-existent. In France, for example, you would have to face paying 7%. In New Zealand, on the other hand, the system does not include a specific tax on the purchase of residential property.

As you can see, Dubai's tax system for individuals is simple and very competitive. However, this doesn't mean that you are completely exempt from tax burdens. While the absence of a personal income tax is a big draw, other levies, such as VAT or municipal fees, can impact your daily finances.

Let's now look at what happens with companies. Is it a good decision to invest in Dubai? Before we get into the subject, we will tell you that it has not become one of the most attractive destinations for companies by chance. It has done so thanks to its competitive and simplified tax system. Of course, the emirate recently introduced corporate tax, but it is still a place with very low rates compared to other countries. Let's look at the main taxes that companies must pay in Dubai and how they work in practice.