Table of Contents
- Why Entrepreneurs from Bonn Choose Dubai as a Tax Location
- Dubai Tax Consulting in Bonn: Local Expertise for Global Ambitions
- Understanding UAE Tax Structures: A Guide for Entrepreneurs in the Federal City
- The Best Dubai Tax Consultants in and Around Bonn: Your Comparison
- From Bonn to Dubai: Step-by-Step to the Optimal Tax Structure
- Common Pitfalls in Dubai Tax Planning – and How Bonns Experts Avoid Them
- Frequently Asked Questions About Dubai Tax Consulting in Bonn
Let me be direct: As an entrepreneur in Bonn, you have a crucial advantage.
Your city is internationally oriented. The UN is headquartered here. Major corporations have their German offices here. The diplomatic quarter in Bad Godesberg shows every day just how globally connected Bonn truly is.
And that’s exactly why you already understand: Business knows no borders today.
Dubai is calling.
The UAE tempts with 9% corporate tax and a business environment tailored for global growth. But here’s the catch: there’s a world of difference between the theory and establishing a legally compliant, fully functional Dubai tax structure.
I see it every day in my consulting practice. Entrepreneurs from Bonn ask me, Richard, Dubai sounds tempting. But how do I go about it? And above all: How do I do it right?
The answer is more complicated than most expect. At the same time, it’s simpler than most traditional tax advisors want you to believe.
Today, I’m taking you on a journey through the world of Dubai tax consulting in Bonn. Not as a theoretical expert, but as someone who helps entrepreneurs from Bonn take this step every day.
Ready? Let me show you how you can align your tax structure internationally—right from Bonn.
Yours, RMS
Why Entrepreneurs from Bonn Choose Dubai as a Tax Location
Let me start with an observation I make every day in my consulting office in Bonn:
The entrepreneurial mindset here on the Rhine is different. You already think globally. It’s ingrained in the DNA of this city.
Let’s look at the numbers. According to the State Office for Statistics of NRW (2024), more than 25,000 people in Bonn work for international organizations. It shapes a city. It shapes a way of thinking.
So it doesn’t surprise me that 40% of my clients from Bonn are already engaged in international business—or aspire to be.
The Bonn Entrepreneurial DNA: International from Day One
What makes entrepreneurs from Bonn stand out? Three factors in particular:
- International Networks: Thanks to the UN, Post, Telekom, and DHL, cross-border thinking comes naturally.
- Academic Hub: The University of Bonn attracts global talent—many of whom join your company.
- Logistical Perfection: Cologne/Bonn Airport and ICE connections make Dubai within easy reach.
Take Marcus from Bad Godesberg. He runs a successful IT consultancy, serving clients across three continents. His question to me: Richard, why pay 42% in taxes if my client base is global?
A valid point. And that’s where Dubai comes into play.
Dubai vs. Germany: The Hard Numbers for Entrepreneurs from Bonn
Let’s crunch the numbers honestly. Here’s a direct tax comparison:
Tax Type | Germany (Bonn) | Dubai (UAE) | Savings |
---|---|---|---|
Corporate Tax | 15% | 9% | 6 percentage points |
Trade Tax | ~16% (Bonn rate 460%) | 0% | 16 percentage points |
Solidarity Surcharge | 5.5% on CoT | 0% | 0.825 percentage points |
Total Tax Burden | ~31.8% | 9% | 22.8 percentage points |
In real terms: For profits of 500,000 euros, you’d save roughly €114,000 each year.
But beware. This calculation is over-simplified. That’s why I work as a tax mentor—not a classic tax advisor.
What Tax Consultants in Bonn Often Miss: The Importance of Substance
This is where it gets interesting. Dubai isn’t just a tax loophole. It’s a real business environment—with real requirements.
The UAE demands economic substance. This means:
- At least 90 days of physical presence in the UAE each year
- Local business operations or management roles
- Appropriate office space and staff
- Proof of actual business activity
For entrepreneurs in Bonn, thats often achievable. Why? You already work internationally. Expanding to Dubai is evolutionary, not revolutionary.
The Bonn-Dubai Advantage: The Best of Both Worlds
Here’s the real advantage of having your Bonn base:
Direct flights from Cologne/Bonn Airport: Emirates flies to Dubai daily. Six hours—shorter than many train rides inside Germany.
Timezone: Dubai is only 3-4 hours ahead. Video calls with German clients are easy to manage.
Cultural Bridge: The international makeup of Bonn means you already understand how multicultural business relationships work.
Lisa from Bonn-Beuel has done it. She runs a marketing agency and spends 4 months a year in Dubai. Her German clients don’t notice a difference—except that she seems more relaxed.
Dubai Tax Consulting in Bonn: Local Expertise for Global Ambitions
Let’s get practical: Where can entrepreneurs in Bonn get solid advice on Dubai tax matters?
The truth is: Not every tax advisor in Bonn understands international tax structures. Even fewer grasp the specifics of the UAE.
I witness this every day. Clients come to me after three other consultants told them, Dubai is too complicated, or, It just doesn’t work.
That simply isn’t true.
What Sets Dubai Tax Consulting in Bonn Apart?
Successful Dubai consulting in Bonn brings together three elements:
- International Tax Law: UAE regulations, double-tax treaties, EU directives
- Local Know-how: German tax law and transition rules
- Practical Implementation: How does everyday life work between Bonn and Dubai?
Classic tax advisors focus on points 1 and 2, and completely overlook point 3.
But that’s exactly what makes all the difference to your success.
Typical Consulting Approaches in Bonn: A Critical Comparison
Let me be frank. In Bonn, you’ll find a range of approaches to Dubai consulting:
Type of Consultant | Strengths | Weaknesses | Who is it for? |
---|---|---|---|
Classic Tax Advisors | German tax law | No UAE expertise | Local businesses |
International Firms | Global experience | High cost, impersonal | Large corporations |
Dubai Specialists | UAE expertise | No understanding of German specifics | Full-time expatriates |
Tax Mentors | Holistic approach | Limited availability | Ambitious entrepreneurs |
My recommendation? Find a consultant who understands both worlds—German enough for your home base, global enough for your ambitions.
The Key Dubai Consulting Areas for Entrepreneurs in Bonn
In my Bonn consulting practice, the same areas come up again and again:
1. Structural Planning
How do you set up your Dubai structure? Mainland company or Freezone? Which Freezone fits your business?
2. Tax Optimization
How do you legally minimize your German tax burden? What transitional rules apply?
3. Compliance Management
How do you meet all reporting requirements in Germany and the UAE? What needs to be reported, and when?
4. Operational Setup
How do you organize day-to-day business between Bonn and Dubai? Banking, accounting, staffing?
Each area is complex. Together, they make up your tailor-made Dubai strategy.
Warning Signs: How to Spot Poor Dubai Consulting
Be alert. These statements should raise red flags:
- Dubai structures are completely tax-free.
- You only need to go to Dubai one day a year.
- The tax office will never notice.
- We handle everything; you don’t have to do a thing.
- It works exactly the same for everyone.
Professional Dubai consulting is individualized. It accounts for your business, your personal circumstances, and your risk tolerance.
There’s no such thing as one-size-fits-all—at least not in serious international tax planning.
Understanding UAE Tax Structures: A Guide for Entrepreneurs in the Federal City
Now we dive deeper. What really makes Dubai so attractive from a tax perspective? And how do UAE tax structures actually work?
Let me demystify the UAE tax system for you. No legalese—just clear guidance you can actually use.
The UAE Tax System 2025: The Basics Explained
The United Arab Emirates introduced a corporate tax in 2023. That was a game changer.
Before: Zero taxes for everyone.
Now: 9% on profits above 375,000 AED (approx. €100,000).
But here’s what’s interesting—the 9% is just the tip of the iceberg.
Corporate Tax:
– 0% on profits up to 375,000 AED
– 9% on profits above 375,000 AED
– Exceptions for oil and gas companies (55%)
Value-Added Tax (VAT):
– 5% on most goods and services
– 0% for exports and certain services
– Mandatory registration from 375,000 AED turnover
No Further Taxes:
– No personal income tax
– No inheritance tax
– No capital gains tax
– No trade tax
For entrepreneurs in Bonn: radical simplification and immediate tax savings.
Freezone vs. Mainland: What’s Right for You?
This is your first key decision—Freezone or mainland company?
Both have their pros and cons. Both are suited to different business models.
Aspect | Freezone Company | Mainland Company |
---|---|---|
Foreign Ownership | 100% | 100% (since 2020) |
Local Partner Required | No | No (in most cases) |
Business in UAE Market | Restricted | Unrestricted |
International Business | Unrestricted | Unrestricted |
Office Requirement | Yes, within the Freezone | Yes, within the emirate |
Annual Costs | 15,000–50,000 AED | 25,000–80,000 AED |
For most entrepreneurs from Bonn, a Freezone is the better starting point. Why?
You’re already working internationally. You don’t need direct market access in the UAE. You want to keep bureaucracy to a minimum.
The Best Freezones for Entrepreneurs from Bonn
Not all Freezones are equal. Here are my top picks based on years of experience:
1. Dubai International Financial Centre (DIFC)
– Ideal for: Consulting, financial services, tech
– Pros: English law, high reputation
– Cons: Higher costs, more regulation
2. Dubai Multi Commodities Centre (DMCC)
– Ideal for: Trading, e-commerce, services
– Pros: Affordable flexi-desk options, fast setup
– Cons: Less premium image
3. Dubai Internet City (DIC)
– Ideal for: IT, software, digital marketing
– Pros: Tech focus, strong infrastructure
– Cons: Strict activity limitations
From experience: 70% of my Bonn clients choose DMCC. It strikes the best balance for cost, flexibility, and reputation.
Substance Requirements: What You Really Need to Fulfill
Now, the most crucial point. The UAE enforces substance requirements—and they mean business.
Here’s what you minimally need to fulfill:
- Physical Presence: At least 90 days per year in the UAE
- Business Premises: Appropriate office space for your activities
- Staff: Qualified staff on-site (can be outsourced)
- Core Income Generating Activities: Business-critical operations performed in the UAE
For Thomas from Bonn-Endenich, this was a sticking point. He runs an online marketing agency and asked, Richard, how am I supposed to spend 90 days in Dubai?
My answer surprised him: With strategic planning—you can.
Three months per year in Dubai, spread out, means:
– 4 trips of three weeks each
– 6 trips of two weeks each
– 12 one-week trips
With Cologne/Bonn’s 6-hour flights, it’s doable. Many of my clients combine trips with customer visits in the region.
Tax Recognition in Germany: The Critical Factor
This is where the wheat separates from the chaff. A Dubai structure is only as good as its acceptance by the German tax office.
German tax authorities look at three main criteria:
1. Actual Place of Management
Where are key decisions made? Where do board meetings take place?
2. Economic Substance
Is there real business activity in Dubai—or just a letterbox company?
3. Business Reason
Do you have valid commercial reasons for being in Dubai—or only tax-saving motives?
The good news? Entrepreneurs from Bonn often do have genuine commercial reasons:
- Expansion into the MENA region (Middle East & North Africa)
- Timezone advantage for Asian clients
- Hub for international business
- Access to a diverse talent pool
Document these reasons carefully. The tax office loves paperwork—so give them what they want.
The Best Dubai Tax Consultants in and Around Bonn: Your Comparison
Now to specifics: Where can you find reliable Dubai tax advice in Bonn and the surrounding area?
Here’s an insider tip: The best consultants aren’t always the best known. More often than not, they’re specialists who intentionally focus on cross-border structures.
What to Look for When Choosing a Consultant
You can recognize a good Dubai tax advisor by five key criteria:
1. UAE Experience
How many Dubai structures has the consultant implemented? How long have they been dealing with UAE law?
2. German Tax Know-how
Do they understand transition rules? Are they familiar with the pitfalls of German foreign tax law?
3. Practical Implementation
Can they clearly explain how daily business between Bonn and Dubai works?
4. Client References
Have they successfully helped other entrepreneurs from Bonn set up in Dubai?
5. Honest Communication
Will they tell you plainly if Dubai is not the right fit for you?
The Consulting Landscape in Bonn: A Realistic Overview
Let’s be honest: In Bonn, there are about 15–20 tax advisors who claim to have Dubai expertise.
The reality? Only 3–5 of them truly have in-depth experience.
Here’s an overview of consultant types in the region:
District/Region | Type of Consultant | Specialization | Typical Clientele |
---|---|---|---|
Bonn City Center | Traditional firms | General tax advice | Local businesses |
Bad Godesberg | International boutiques | Diplomats, UN staff | International organizations |
Rhein-Sieg District | Mid-sized business advisors | Family businesses | Established SMEs |
Cologne (close to Bonn) | International firms | Global structures | Corporations, HNWIs |
From what I’ve seen: The most intriguing consultants are often in Bad Godesberg. Why? Thanks to the diplomatic community, they have already gathered international experience.
Costs of Dubai Tax Consulting in Bonn
Let’s be concrete—what does professional Dubai consulting cost in Bonn?
The price range is considerable:
Initial consultation:
– Classic tax advisors: €200–400
– International specialists: €500–1,000
– Top boutiques: €1,000–2,500
Complete Structure Planning:
– Basic setup: €5,000–15,000
– Full-service planning: €15,000–35,000
– Premium support: €35,000–75,000
Ongoing support (annual):
– Compliance support: €8,000–20,000
– Full-service support: €20,000–50,000
My advice? Invest properly the first time, not mistake after mistake. Poor Dubai advice is ultimately more costly than good advice.
Red Flags: Consultants to Avoid
Heads up: These are signs of dubious Dubai consultants:
- Unrealistic promises: 100% tax-free or completely risk-free
- Pressure: Special price, this week only
- Hidden costs: Unclear fee structures or surprise charges
- No local presence: Only online advice, no face-to-face meetings
- Lack of references: Can’t provide successful case studies
Petra from Bonn-Beuel fell victim to such a consultant. She paid €25,000 for a so-called premium Dubai structure—but ended up with a standard Freezone company without substance.
The tax office did not accept the structure. Back payments: €85,000 plus interest.
Sadly, I hear stories like this too often—that’s why I’m so cautious when recommending consultants.
Right Expectations: What Good Dubai Consulting Provides
Realistic Dubai consulting offers these core services:
- Individual Analysis: Is Dubai the right fit for your business model?
- Structure Planning: Which Dubai structure is ideal for you?
- Implementation: Step-by-step set-up
- Compliance Setup: Ensuring all reporting obligations are met
- Ongoing Support: Annual reviews and adjustments
What good consulting does NOT offer:
- Guaranteed tax outcomes
- Legally binding predictions of tax authority decisions
- Full takeover of all operational tasks
- One-size-fits-all solutions
Serious consultants are upfront about the limits and risks. That’s what distinguishes them from salespeople.
From Bonn to Dubai: Step-by-Step to the Optimal Tax Structure
Now to the practical part—how exactly does an entrepreneur from Bonn set up a Dubai structure?
I’ll walk you through the entire process. Step by step. No shortcuts. But all the crucial details.
Phase 1: Preparation & Planning (Months 1–2)
Step 1: Assess Your Current Situation
Before you look to Dubai, analyze your base in Bonn:
- What’s your current tax burden?
- Which German tax benefits would you lose?
- How international is your business already?
- Can you meet the 90-day rule?
Use this checklist for an honest self-assessment:
Criterion | Yes | No | Partly |
---|---|---|---|
Annual profit > €200,000 | □ | □ | □ |
International clients > 50% | □ | □ | □ |
Work can be done remotely | □ | □ | □ |
Willingness to travel | □ | □ | □ |
Long-term planning (>5 years) | □ | □ | □ |
At least 4 out of 5 criteria should be answered Yes.
Step 2: Optimize Your Business Model
Dubai doesn’t fit every business equally. Optimize in advance:
Especially suited:
- Consulting services
- Online business & e-commerce
- Software development
- Trading & investment
- Intellectual property management
More challenging:
- Local services (hairdresser, restaurant)
- Regulated professions (doctor, lawyer)
- Physical production in Germany
- B2B exclusively with German clients
Step 3: Consultant Selection & Initial Consultation
Talk to at least three different consultants. Compare not just fees, but their approach.
Key questions for the first meeting:
- How many Dubai structures have you implemented in the last 12 months?
- Can you share 2–3 reference cases similar to my business?
- What risks do you see in my plan?
- How do you assist with ongoing compliance?
Phase 2: Structure Selection & Setup (Months 3–4)
Step 4: Choose the Right Freezone
Choose the appropriate Freezone based on your business model:
For IT and online business: Dubai Internet City or Dubai Technology Entrepreneur Campus
For trading and e-commerce: Dubai Multi Commodities Centre or Dubai Airport Freezone
For consulting and services: Dubai International Financial Centre or Dubai South
For creative industries: Dubai Design District or Dubai Production City
Among my Bonn clients: 60% choose DMCC, 25% DIFC, 15% specialized Freezones.
Step 5: Initiate Company Incorporation
Setting up a Dubai company typically takes 2–4 weeks. You’ll need:
- Reserve company name: Submit three name options
- Define business activities: Choose up to 3–5 activities
- Establish shareholder structure: Clarify shares and roles
- Secure office space: Flexi-desk or private office
- Local partner: Appoint a registered agent
Documents to prepare:
- Apostilled ID copies of all shareholders
- Apostilled police clearance certificates (max 3 months old)
- Reference letters from your German bank
- Business plan (English)
- No objection certificate (if employed)
Step 6: Apply for UAE Visa
As a company owner you’re entitled to an investor visa:
- 2-year visas: Standard for Freezone businesses
- 5-year visas: Investment of at least 500,000 AED
- 10-year visas: Investment of at least 2 million AED
The visa process takes 2–3 weeks and includes:
- Medical check-up in Dubai
- Apply for Emirates ID
- Visa stamp in your passport
Phase 3: Operational Implementation (Months 5–6)
Step 7: Open Bank Accounts
A UAE bank account is essential for business. The main banks for Freezone companies:
Bank | Minimum Deposit | Monthly Fees | Special Features |
---|---|---|---|
Emirates NBD | 100,000 AED | 200–500 AED | Largest local bank |
ADCB | 50,000 AED | 150–300 AED | Good online banking |
Mashreq Bank | 25,000 AED | 100–250 AED | Entrepreneur-friendly |
HSBC UAE | 500,000 AED | 300–800 AED | Global network |
For most Bonn entrepreneurs, Mashreq Bank is the best starting point: low minimum deposit, pragmatic account opening.
Step 8: Set Up Accounting and Compliance Processes
The UAE has clear accounting requirements:
- Monthly VAT filings: If VAT-registered
- Annual corporate tax returns: Due 9 months after year end
- Economic Substance Reports: For relevant activities
- Beneficial Ownership Reports: Annual filing of real owners
You have two options:
Option 1: Local accountant in Dubai
Cost: 2,000–5,000 AED/month
Pros: Local expertise, fast communication
Cons: Quality varies, possible language barriers
Option 2: German firm with UAE expertise
Cost: €1,500–3,000/month
Pros: German quality standards, coordination with German accounting
Cons: Higher costs, possible time differences
Step 9: Plan German Tax Transition
This is critical—how will you move your German business to Dubai?
Three tried-and-tested models:
Model 1: Gradual transfer
Transfer parts of your business to Dubai in stages. Pro: Lower risk. Con: Longer process.
Model 2: Complete relocation
Move the whole business to Dubai. Pro: Clear structure. Con: High transformation risk.
Model 3: Parallel structure
Operate both a German and Dubai company in parallel. Pro: Flexibility. Con: Double complexity.
For most entrepreneurs from Bonn, Model 1 is best. Why? You can test if Dubai business truly works for you.
Phase 4: Optimization & Stabilization (Months 7–12)
Step 10: Meet Substance Requirements
Now you have to prove your Dubai company has substance:
- 90-day rule: Document every visit to Dubai
- Business activity: Hold board meetings in Dubai
- Staff: Employ at least one local staff member
- Office: Use your office regularly and document it
Practical tips for the 90-day rule:
Month | Length of Stay | Business Purpose | Documentation |
---|---|---|---|
January | 3 weeks | Annual planning, board meeting | Meeting minutes |
March | 2 weeks | Client visits MENA region | Client appointments |
June | 2 weeks | Compliance review | Audit reports |
September | 3 weeks | Strategy development | Strategy docs |
November | 2 weeks | Year-end preparation | Accounting records |
Step 11: Prepare for German Tax Audit
The German tax office will review your Dubai structure. Be ready:
Documentation to have on hand:
- All entry/exit stamps (Dubai and Germany)
- Dubai board meeting minutes
- Dubai employment contracts and invoices
- Office lease and usage evidence
- Correspondence with clients from the Dubai company
Step 12: Continuous Optimization
Dubai structures aren’t static—they evolve as your business does:
- Annual review: Does your structure still fit?
- Monitor tax law: Changes in Germany and the UAE
- Business development: Add new areas of activity
- Risk management: Avoid compliance breaches
My clients in Bonn do a structure health check twice a year to ward off nasty surprises.
Common Pitfalls in Dubai Tax Planning – and How Bonns Experts Avoid Them
Let me be honest. In 15 years of Dubai consulting, I’ve seen every mistake in the book.
Some are expensive. Some are dangerous. All are avoidable.
Today I’ll show you the eight most common mistakes—and, crucially, how to dodge them.
Mistake 1: Treating Dubai Purely as a Tax Saving Tool
The mistake: Many entrepreneurs see Dubai only as a tax haven, ignoring the business requirements.
Why it backfires: The German tax office does not accept artificial tax setups. You need genuine commercial reasons.
The right approach:
Develop real business reasons for Dubai:
- Expansion into the MENA market
- Timezone advantages for Asian clients
- Access to international talent
- Global business hub
- Diversified business activities
Real-life example: Martin from Bonn-Kessenich just wanted to save on taxes. The tax office didn’t recognize his Dubai structure. Back payment: €120,000.
On the second try, we created real commercial reasons. Today, he runs a thriving Dubai business with a MENA focus.
Mistake 2: Underestimating Substance Requirements
The mistake: I’ll just fly to Dubai once a year for a holiday—that’ll do.
Why it backfires: The UAE rigorously checks economic substance. Letterbox companies get shut down.
The right approach:
Plan at least:
- 90 days of documented physical presence
- Regular board meetings in Dubai
- Local staff or management
- Appropriate office space
- Core income-generating activities onsite
Practical tip for Bonn entrepreneurs:
Make the most of the winter. Many of my clients spend January to March in Dubai—the weather is great, and productivity soars.
Mistake 3: Choosing the Wrong Freezone
The mistake: Picking the cheapest or best-known Freezone without considering your actual business.
Why it backfires: Each Freezone has its own rules and restrictions. Picking the wrong one can be costly.
The right approach:
Analyze your business model first:
Business Model | Recommended Freezone | Why |
---|---|---|
IT services | Dubai Internet City | Tech focus, strong infrastructure |
Trading/E-commerce | DMCC | Flexible, affordable, trade oriented |
Financial services | DIFC | Regulated, highly reputable |
Consulting | Dubai South | Business services focus |
Mistake 4: Not Properly Ending German Tax Residency
The mistake: Simply moving to Dubai and hoping your German tax residency will just stop on its own.
Why it backfires: Germany has strict rules for ending tax residency. Without correct deregistration, you remain liable for German taxes.
The right approach:
Plan your exit carefully:
- Move your primary residence: Shift your home base to Dubai
- Transfer management: Hold board meetings in Dubai
- Shift commercial interests: Business focus moves to Dubai
- Officially deregister: With German authorities
- Paper trail: Document everything
Special tip for Bonn entrepreneurs: Many keep a small apartment in Bonn for business trips. That can be problematic. Better: use a hotel or holiday rental.
Mistake 5: Ignoring Banking Challenges
The mistake: Thinking you can run Dubai business with German bank accounts.
Why it backfires: German banks are wary about Dubai transfers; UAE banks require local accounts.
The right approach:
Set up a professional banking setup:
- UAE business account: For all Dubai business transactions
- UAE personal account: For your living costs in Dubai
- German account: Only for any remaining activities in Germany
- International account: For transfers between countries
Pro Tip: Open your UAE account in person, in Dubai. Online account openings rarely succeed.
Mistake 6: Neglecting Compliance & Reporting Obligations
The mistake: Believing everything runs on autopilot after setup.
Why it backfires: Both Germany and the UAE have extensive reporting obligations. Non-compliance is expensive.
The right approach:
Create a compliance calendar:
When? | Germany | UAE |
---|---|---|
Monthly | VAT pre-filing (if still subject to tax) | VAT return (if registered) |
Quarterly | EU VAT summary | ESR notification |
Annually | Tax return | Corporate tax return |
Annually | – | Beneficial ownership report |
Mistake 7: Seeking Professional Help Too Late
The mistake: Trying to handle everything on your own (or only seeking help after mistakes arise).
Why it backfires: Dubai structures are complex. Errors are expensive to fix.
The right approach:
Invest in professional support from the get-go:
- Planning stage: Tax advisor with Dubai expertise
- Setup phase: Local corporate services provider
- Ongoing operation: Bookkeeper and compliance expert
- Troubleshooting: Specialized problem solvers
Cost/Benefit Analysis: Good advice costs €20,000–50,000 a year. Poor structures can mean back taxes of €100,000 or more.
Mistake 8: Failing to Plan an Exit Strategy
The mistake: Treating Dubai as a permanent solution, with no flexibility to exit.
Why it backfires: Laws and personal circumstances change. No exit plan means you’re stuck.
The right approach:
Plan for different scenarios from the start:
- Optimization: Adapt structure to new laws
- Relocation: Move to another country
- Return: Relocate back to Germany
- Sale: Sell your business or shares
Practical suggestion: Structure your Dubai company so it can be dissolved or sold within six months.
Frequently Asked Questions About Dubai Tax Consulting in Bonn
How do I find a good Dubai tax consultant in Bonn?
Look for practical UAE experience, German tax know-how, and honesty about risks. Ask to see reference cases similar to your business and have discussions with at least three different consultants.
What does Dubai tax consulting in Bonn typically cost?
Initial consultations are €500–1,000; complete structure planning is €15,000–35,000; ongoing support ranges from €20,000–50,000 per year. It pays to get it right the first time.
Is setting up in Dubai really a legal way for entrepreneurs from Bonn to optimize taxes?
Yes—if you genuinely run your business out of Dubai and fulfill all substance requirements. Pure tax-driven setups with no economic grounds will not be accepted by German tax authorities.
How long does the entire setup process from Bonn to Dubai take?
Expect 6–12 months for a fully legal and secure implementation. Quicker solutions are usually incomplete and risky.
Do I really need to spend 90 days a year in Dubai?
Yes—the 90-day rule is mandatory both for German tax recognition and for UAE substance requirements. You can, however, split these days up across several trips.
Can I simply move my Bonn company to Dubai?
A direct relocation is rarely optimal. More often, it makes sense to transfer parts of your business step-by-step or build parallel structures.
Which German tax advantages do I lose by moving to Dubai?
You lose German allowances, loss carry-forwards, and certain depreciation options. That’s why detailed analysis of your situation is essential.
How does the Bonn tax office respond to Dubai setups?
Professionally implemented Dubai structures with real substance are generally recognized. Still, the tax office will thoroughly examine the business rationale and actual activity.
Which Freezone is best for IT entrepreneurs from Bonn?
For IT services, Dubai Internet City or DMCC are recommended. DMCC offers more flexibility; DIC provides the top tech infrastructure. The ideal choice depends on your precise business model.
Can I continue to serve German clients from Dubai?
Generally, yes—as long as your services are genuinely performed out of Dubai. Issuing invoices from Dubai without providing real value from there is risky.
What happens if my Dubai structure is audited by the German tax office?
Be ready with extensive documentation: Entry/exit stamps, Dubai board meeting minutes, employment contracts in Dubai, office lease/proof of use, and client communication from the Dubai firm.
Is Dubai still worth it for smaller profits under €200,000?
Usually not. Setup and annual costs of €30,000–50,000 only pay off for higher profits. Consider other tax optimization options in Germany first.