Is Dubai Still Worth It After the 9% Corporate Tax?
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Ever since the UAE rolled out its new 9% corporate tax, one question keeps popping up in our conversations:
“Is it still worth moving to Dubai and setting up a company?”
At GenZone, we help entrepreneurs, consultants, and business owners set up their businesses in Dubai, get residency, open bank accounts, and ultimately become tax residents in the UAE. And with all the buzz around this new tax, we thought it’s time to break things down clearly.
So, in this article, we’re going to cover:
What the 9% corporate tax actually means
Who it affects (and who it doesn’t!)
What deductions are allowed
How Dubai stacks up compared to other countries
And most importantly… is it still worth relocating?
Let’s get into it.
What Is the New 9% Corporate Tax in Dubai?
As of June 2023, the UAE introduced a 9% corporate income tax. But here’s what most people miss:
It only applies to net profits over AED 375,000, which is roughly USD 102,000.
So, if your business makes less than 375,000 AED in annual net profit, you don’t pay a single dirham in corporate tax.
And if you make more than that, only the amount above AED 375,000 is taxed at 9%.
Example:
If your business earns AED 600,000 in profit, you’ll only be taxed 9% on the 225,000 AED over the threshold.
That’s just 20,250 AED in tax — far lower than what most countries charge.
But There’s More: Small Business Relief
To support startups and smaller businesses, the UAE introduced a Small Business Relief Program.
If your total business revenue (not profit) is under AED 3 million — that’s about USD 816,000 —
you qualify for 0% corporate tax, even if your profits go above AED 375,000.
This program runs until 2026, and it’s an absolute game-changer for smaller companies and solo entrepreneurs.
So in short:
Earn under AED 375,000 in profits? No tax
Earn under AED 3 million in revenue? No tax until 2026
Earn more than both? Just 9% on profit above AED 375,000
That’s still one of the lowest tax rates in the world.
What Counts as Business Expenses?
Let’s say you’re above the tax threshold — is there anything you can do to reduce your taxable income?
Absolutely. Just like most other countries, the UAE allows you to deduct business expenses before calculating your profit.
That includes:
Office rent and utilities
Salaries (including your own)
Software, tools, and equipment
Travel and flights for business
Marketing and ad spend
Client dinners and entertainment
These costs can significantly reduce your net profit — which means you pay less tax.
Smart structuring and accounting make a big difference here (and yes, we help with that too ).
How Does Dubai Compare to Countries Like Canada, the UK, and Europe?
Let’s be real: this is the part that matters most for people moving here.
Because even with a 9% corporate tax, Dubai’s overall tax structure still blows most countries out of the water.
Let’s look at the top tax rates:
| Country | Personal Income Tax | Corporate Tax |
|---|---|---|
| Canada | Up to 53% | 15–31% |
| UK | Up to 45% | 19–25% |
| Germany | Up to 45% | 30%+ |
| France | Up to 46% | 25% |
| UAE (Dubai) | 0% | 9% |
Let that sink in — zero personal income tax in Dubai. That’s huge. Even if you’re taxed 9% on your company profits, you can still pay yourself a salary that’s entirely tax-free.
So if you’re earning $200K+ annually…
Why give up half your income when you could keep almost all of it in Dubai?
Why Dubai Still Makes Sense in 2025 (and beyond)
Even with the 9% corporate tax in place, Dubai remains one of the best places in the world for entrepreneurs and remote workers.
Here’s why:
1. Personal Income is Still Tax-Free
That hasn’t changed. You can still pay yourself a salary — zero tax. This is the main reason many of our clients make the move.
2. Corporate Tax Is Still Very Low
Even if you cross the revenue/profit thresholds, 9% is a fraction of what you’d pay in most Western countries.
3. You Can Still Deduct Expenses
With smart structuring, you can legally reduce your profit, reducing tax even further.
4. Small Business Relief Program
Until 2026, businesses with revenue under AED 3M can still pay 0% — even if they’re very profitable.
5. Quality of Life
From safety to sunshine, modern infrastructure to world-class dining and nightlife — Dubai is unmatched. This isn’t just about taxes, it’s about upgrading your lifestyle too.
Who Is This Ideal For?
Dubai isn’t just for big companies. With the current tax setup, it’s a perfect fit for:
Freelancers working online
Digital entrepreneurs and agency owners
Traders and consultants
Small businesses and startups
High-income earners from high-tax countries
Remote workers tired of paying half their income in taxes
Whether you’re earning $100K or $1M+, Dubai helps you keep more of what you earn, while building a more global and flexible lifestyle.
How Does It All Work With GenZone?
If this all sounds good but feels overwhelming — that’s where we come in.
Here’s what we help with at GenZone:
Business setup in mainland or free zone Residency visa for you (and your family if needed) Corporate bank account in UAE Tax residency certificate Advice on structuring your company to reduce tax
We’ve helped hundreds of entrepreneurs successfully relocate and establish themselves in Dubai — without the headaches. Our process is smooth, clear, and designed to get you results fast.
What’s the Catch?
We get this question a lot.
Yes, there are some compliance steps now (you need to register for corporate tax, maintain proper accounting, file reports, etc.) — but all of this is very manageable with the right guidance.
Dubai’s government is highly digital and efficient. In fact, we’ve had clients go from initial consultation to full setup within 10 days.
Plus, we offer full post-setup support:
Accounting & bookkeeping
VAT registration (if required)
Yearly tax filing
License renewals and visa updates
So once you’re here, you’re never left figuring things out alone.
So… Is Dubai Still Worth It?
In our opinion: Absolutely.
Here’s why, plain and simple:
| Reason | Why It Matters |
|---|---|
| 0% Personal Tax | Still one of the only countries offering this |
| Low Corporate Tax | 9% only above AED 375K, and only on profits |
| Small Business Relief | Earn under AED 3M revenue? Still 0% until 2026 |
| Full Expense Deductions | Lower your net profit (and your tax) legally |
| Global Business Hub | Meet, collaborate, and grow with entrepreneurs |
| Lifestyle & Safety | Safe, sunny, clean, and super livable |
Dubai isn’t just about tax. It’s about freedom.
Freedom to earn more, live better, and build your business in a place that supports growth — not one that punishes success.
Final Thoughts from GenZone
Yes, the introduction of a 9% corporate tax might seem like a big change… but for most entrepreneurs, it barely affects their setup — and definitely doesn’t outweigh the benefits.
In fact, for most of our clients, Dubai is still the most financially smart, lifestyle-enhancing decision they’ve made.
If you’re thinking of making the move — or just exploring your options — we’re here to help.
Book a free consultation call with our team today.
Let’s map out a clear, customized plan for your business and residency in Dubai.
GenZone – Your Trusted Partner for Company Setup, Residency & Tax Solutions in the UAE.
