Dubai (UAE) vs Cyprus
Dubai (UAE) has the lower headline tax (9%), and Cyprus is cheaper to set up (from $1,500).Which is better depends on where you live and where your customers are.
| AEDubai (UAE) | CYCyprus | |
|---|---|---|
| Entity | Free Zone company (FZ-LLC / FZCO) or Mainland LLC | Private company limited by shares (Ltd) |
| Corporate tax | 0–9% (0% up to AED 375k; 0% for Qualifying Free Zone income) | 15% (from 2026), non-doms 0% tax on dividends |
| Setup cost from | $3,400 | $1,500 |
| Setup time | 1–3 weeks (+2–4 weeks for visa) | 1–3 weeks |
| Minimum capital | None paid-up in most free zones | None (€1,000 typical) |
| Local director | Not required | Not required |
| Remote formation | Visit needed | Yes |
| Residency visa | Possible | Possible |
| Banking | Difficult | Moderate |
| Best for | Founders who want to relocate, live tax-free personally and run consulting, trading or holding activities from a stable hub. | Entrepreneurs relocating within the EU who want an EU company, non-dom dividend benefits and access to tax treaties. |
Choose Dubai (UAE) if
Founders who want to relocate, live tax-free personally and run consulting, trading or holding activities from a stable hub.
- 0% personal income tax plus a 2-year residence visa through your own company
- 0% corporate tax possible as a Qualifying Free Zone Person
- 100% foreign ownership in free zones — no local sponsor
Choose Cyprus if
Entrepreneurs relocating within the EU who want an EU company, non-dom dividend benefits and access to tax treaties.
- EU company with a wide double-tax treaty network
- Non-dom residents pay 0% Special Defence Contribution on dividends for up to 17 years
- IP box regime with a low effective rate on qualifying IP profits