Who Doesn’t Want to Pay 0% Taxes Legally? Especially if you’re coming from a high-tax country like Spain, Germany, Canada, Australia, etc.
Today we are going to talk about the UAE freelance visa, an option that not many know about… stay with us.
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Why Choose the UAE Nomad Visa for Your Freelance Career?
The 0% tax rate can apply to any situation, whether you’re a freelancer, a business owner, or even a remote worker who can work for a company from anywhere in the world. So why not consider the United Arab Emirates?
This oil-rich country has recognized the finite nature of this resource and is promoting a shift toward a modern and developed economy. With a focus on cutting-edge technology, luxury, and other sectors, they are establishing an international business hub to attract talent and innovation globally.
By moving here, even if you don’t get a 0% tax exemption due to your company’s large turnover, you’ll pay a maximum of 9%. Not bad, right?!
How to Register Your company in the UAE
In the UAE, anyone wishing to move can register their company in one of the country’s more than 50 free zones in less than a month. If you want to see which are the best free zones, we have a blog on our website.
If you create your company in the UAE, you should know that the first approximately 100,000 euros are tax-free; any additional income your business generates is subject to a 9% tax. However, it is possible to reduce the taxable base in the UAE by paying yourself a salary that can be considered an expense for your company.
Following this example, even if you earn 200,000 euros instead of just 100,000 euros, under certain conditions, the entire amount may be tax-exempt at 0%. Furthermore, dividend distributions are not subject to withholding tax, dividend taxes, or any other type of levy, allowing you to enjoy completely tax-free income.
But you didn’t come to this video to talk about companies in the Emirates. Your question is probably, “How can I move there if I don’t want or can’t open a company?” For example, if I’m an freelancer in the UAE? For these people, the United Arab Emirates has also created opportunities. Let me tell you…
Well, let’s say you are an employee and want to move to Dubai… How could you do it?
Exploring TECOM Free Zones with the UAE freelance visa
For freelancers in the UAE, there are many options offered by the Emirates’ free zones, such as Dubai Media City, Dubai Studio City, Dubai Knowledge Park, etc.
The conditions for obtaining this type of visa vary slightly depending on the free zone, but we will tell you about the most popular option: the conditions set by TECOM Group. TECOM Group includes several free zones such as Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Knowledge Park, and Dubai Design District.
If you are a freelancer in the UAE and choose one of these free zones, you will obtain a freelance license and a visa valid for two years. In addition to having the right to work and live in the UAE, you will be part of the Go Freelance community. Go Freelance is an online platform that brings together freelancers from different categories such as technology, media, education, and design.
In short, you will be a self-employed worker in the United Arab Emirates, but with the added benefit of promoting your services through a specialized platform and participating in networking events organized by TECOM.
Remote Work Opportunities with the UAE Nomad Visa
The other option is for individuals working for companies outside the UAE. The visa is for remote workers, officially known as the virtual residence visa for remote work. You not only need to be employed by such a company, but your employer must also allow you to live in the UAE.
This requirement to demonstrate that your employer knows and allows you to work from abroad is not new; there are several other countries with the same requirement. For example, with Spain’s digital visa, it is the same: you need to present proof that your company allows you to reside and work from Spain. So, in the UAE, it is the same condition.
Key Considerations for Digital Nomads with the UAE Nomad Visa
The visa is issued for one year. Keep in mind that with this type of visa, you need to demonstrate a minimum salary of USD 5,000 per month. If you are a business owner, you must demonstrate that you have owned this business for more than a year and that the monthly income is at least USD 5,000.
Taxes, in case you register a company in the UAE or work as a freelancer/remote worker, are not the same. With the company, the tax-free threshold is AED 375,000, as we mentioned before, approximately 100,000 euros.
If you work as a freelancer or remote worker in the UAE, the tax-free threshold is even higher, AED 1 million, approximately 250,000 euros per year. Income above this amount is subject to a 9% tax.
However, the only drawback I see with these visas is that, as a digital nomad in the UAE, you would need to stay at least 183 days in the UAE, as the privilege of becoming a tax resident by staying only 90 days is not applicable to remote workers.
So, let me know in the comments, which option would you choose? Company or Freelancer in the Emirates?
Best regards, and see you in the next Blog.
