Case study : how to live in the sun all year and pay 0% tax
I have discovered a few years ago a concept of 0% on income tax and 0% property tax in Dubai so I went to investigate and stayed there the whole of 2021.
In order to stay in Dubai for longer that 3 months I got myself freelancer visa which had a price tag of 19k AED (5k USD) and after 6 months of being there, without even realising, I was eligible to become a tax resident in the UAE, which means 0% for the year, so basically my tax savings paid for my 2 year visa.
Following the same logic I have registered a company for about USD 8k which will also not pay any tax. Sure there is annual renewal cost of the licence but it’s still cheaper than paying company income taxes in the US or Europe.
There are talks of introducing a 9% tax for companies starting from June 2023, but until this is official, we are trading as usual.
So in brief, the tax savings will cover my company setup costs and it will cover the newly acquired apartment repayments.
Last year, I have bough an apartment off plan in Dubai in Business Bay, let me tell you more about it.
I bought an apartment worth 640k AED (USD 175k) by putting 5% down. The apartment will be ready in 2024 but it has already increased in value of estimated 20%.
Once the apartment is ready the ROI on rentals is expected between 15-30%. Of course there is no tax on the rental income, and no annual property tax. The only tax you have to pay is one time initial fee of 4% DLD of the value of the property to enter the property in the property registrar and get a deed on your name. In my case the developer has waived this fee.
How can you do the same?
Freelance visa cost USD 5000 (valid for 2 years)
Company setup cost USD 10-15,000 (with a visa)
Nowadays the apartments start at USD 150-160k and you can start with anything like 5 to 20% downpayment and there are several payments plans. There are plans of 10% down and plan of 90 monthly payments of 1%.
Agency fee 5%.
You don’t need to be a resident and you don’t need to take a mortgage – which is very convenient for a person like me who moves around from country to country all the time and I don’t have a solid credit history anywhere.
Now after almost 2 years of being connected with Dubai I work as real state and business consultant and help others to set up a businesses, get a residency visa and buy a property in this ever growing city.
After a year of working in an office I have convinced them I do this fully remotely and only go to Dubai when needed, so summers I spend in the sunny Mediterranean (Sicily and the south of Greece) and winters in ever sunny Dubai.
Honestly guys screw Northern European and US economies, their high taxation, and stupid winters. Dubai is also super safe, there is no theft, no crime, no drugs and gun violence, so you can really relax and live in peace. I never lock my car and many of my friends never lock their apartments.
If you wish to discuss how can I help you to invest in a property in Dubai, open a company, get a residence / freelance visa shoot me an email or Whatsapp/Viber/botim to schedule a call:
thomas@vacationservices4you.com
+39.3314503978
Online resources:
Property catalogue online:
https://www.facebook.com/profile.php?id=100087917712356…
Company setup and visas:
Holidays in Dubai:
https://www.facebook.com/profile.php?id=100087907819356
My Instagram for Dubai:
thomas.dubai
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