0% Income Tax in Dubai for Family Offices

0% Income Tax in Dubai: Relevance for Family Offices

The subject of 0% income tax in Dubai is of particular significance for family offices. The United Arab Emirates offer a tax environment that is unrivalled in the DACH region: 0% income tax, 0% capital gains tax, 0% inheritance tax on real estate. For family offices, this represents a considerable wealth advantage.

Tax Benefits in Detail

• Rental Income: Fully tax-free — no income tax in the UAE
• Capital Gains: 0% tax on disposal of the property
• Inheritance and Gifts: No inheritance tax in Dubai
• Corporate Tax: 9% above AED 375,000 profit (for corporate structures only)
• VAT: 5% on commercial properties; residential properties are exempt

Special Considerations for Family Offices

Tax optimisation through Dubai real estate is particularly relevant for family offices, as they frequently operate in high tax brackets. The savings can amount to 30-50% of gross rental income.

Legal Framework

Important: the tax benefits apply subject to correct structuring. For DACH nationals, the following points must be observed:

• Tax Residency: The change of tax residency to the UAE requires compliance with the 183-day rule and proof of economic substance
• DTA: The Double Taxation Agreement between Germany and the UAE governs tax allocation
• Exit Taxation: The surrender of German residence may trigger subsequent taxation
• Extended Limited Tax Liability: Relevant for the first 10 years following emigration

Recommendation for Family Offices

AXD Immobilien recommends that family offices seek individual advice covering both real-estate and tax structuring. We work with specialised German-Emirati tax advisers who analyse your specific situation and develop the optimal structure.