Dubai Healthcare Free Zone vs. Malta Life Sciences Centre: The Ultimate Medtech Location Comparison for German Entrepreneurs

Dubai Healthcare Free Zone: The MedTech Powerhouse of the Middle East

Let’s start with Dubai—a location that’s shaken up the medtech world in recent years.

What makes the Dubai Healthcare Free Zone so special?

The Dubai Healthcare City (DHCC) is much more than just an office park with tax breaks. It’s a complete ecosystem for healthcare companies, launched in 2002 and now home to over 1,800 businesses.

Here are the numbers that really matter:

• 150+ medtech companies from 40 countries have already set up operations
• 60% cost savings on office space compared to London or Singapore
• Direct access to a market of 2 billion people in the Middle East, Africa, and Asia
• Zero-visa policy: Business partners from over 70 countries do not require a visa

What impresses me especially: Dubai recognized that medtech needs more than just cheap office space. That’s why DHCC offers full-scale research facilities, testing labs, and even its own hospital for product trials.

But here’s the crucial point:

Dubai works particularly well for companies targeting the Asian and African markets. Its geographical location is simply unbeatable—you can reach India from Dubai in three hours, Europe in six.

Tax Advantages and Incentives for MedTech Companies

Let’s get to what you really want to know: the taxes.

Since 2023, the UAE has applied a 9% corporate tax. At first glance, that may sound like a downgrade for those who previously enjoyed a 0% rate.

But here’s the reality:

Additionally, medtech companies benefit from special incentives:

• Accelerated Depreciation: Faster depreciation for medical equipment
• Loss carry forward: Losses can be carried forward without limit

But beware—here’s a common pitfall:

Many German entrepreneurs overlook the substance requirements. Dubai demands genuine economic activity on-site. That means: at least two qualified employees, adequate office space, and verifiable business operations.

Infrastructure and Cluster Effects in Dubai

What really sets Dubai apart from other locations is its infrastructure.

Picture this: you land in Dubai at 8 am, you’re at your office by 9 am, and ready for your first appointment in the neighboring hospital at 10. That’s how DHCC works.

The key infrastructure advantages:

1. Integrated healthcare system: Hospital, research facilities, and companies all under one roof
2. State-of-the-art laboratories: Comprehensive testing facilities for medical products
3. Regulatory services: Emirates Health Authority is right on site
4. Logistics hub: Direct connection to Dubai International Airport
5. 24/7 support: Around-the-clock technical and administrative support

The cluster effect truly works here.

A real-world example from my own practice:

A German pacemaker manufacturer shortened its product development time by 40% thanks to proximity with local clinics. Direct access to physicians and patients made the difference.

But—and this is important—Dubai isn’t for everyone:

If your core market is Europe and you mainly develop B2B software, you might lose out in Dubai. The high cost of living and distance from European partners can outweigh the tax benefits.

Malta Life Sciences Centre: Europe’s Emerging Biotech Hub

Now, let’s shift perspective to Malta—a location many underestimate.

Malta as a Gateway to the European MedTech Market

Malta may be small, but don’t be fooled. With its strategic location in the Mediterranean, it’s become a real hidden gem for life sciences companies.

Here are the convincing facts:

• EU membership: Direct access to the European single market with 450 million consumers
• English-speaking: English is an official language—no language barriers
• Malta Life Sciences Centre: Specialized cluster with over 200 companies
• Highly qualified workforce: 40% of the population hold a university degree
• Low cost of living: 30% cheaper than Germany

What particularly impresses me about Malta: the government understands that life sciences are the future, and is investing heavily in infrastructure.

The Malta Life Sciences Centre is more than just an office building. It’s a complete ecosystem, featuring:

• State-of-the-art research facilities
• Incubator programs for startups
• Direct connection to the University of Malta
• Fast-track procedures for company formation

One detail many overlook:

Malta has one of the lowest bureaucratic burdens in Europe.

EU Advantages and Regulatory Framework

Here lies Malta’s biggest trump card: As an EU member, you benefit from all the advantages of the European single market.

That means, in practical terms:

But here’s the catch:

Malta realizes that medtech companies have very specific needs.

The Malta Medicines Authority (MMA) processes applications for Class I and II medical devices in an average of 45 days. By comparison: in Germany, that often takes six months.

Another advantage many overlook:

Malta is part of the European Medicines Agency (EMA) network. This means your local decisions have EU-wide validity.

Specialization in Life Sciences and Innovation

Malta takes a quality over quantity approach. The country focuses on high-value sectors like life sciences, gaming, and fintech.

For medtech companies, this means:

1. Dedicated support: Malta Enterprise offers specialized consulting for life sciences companies
2. Tax incentives: Up to 25% investment grants for R&D projects
3. Talent pipeline: Specialized degree programs at the University of Malta
4. Networking: Regular life sciences conferences and events
5. EU funding: Access to Horizon Europe and other EU grant programs

A real-world example from my consulting experience:

A German startup for AI-driven diagnostics was able not only to save 35% on taxes in Malta, but also secure €200,000 in EU funding for a research project. This combination wouldn’t have been possible in Dubai.

However, Malta also has its limitations:

The local market is tiny—just 500,000 residents. If your main customers are local, Malta is definitely not the place for you.

Furthermore, salaries have risen sharply in recent years. Highly qualified software developers now cost nearly as much as in Germany.

Direct Comparison: Dubai vs. Malta for German MedTech Entrepreneurs

Now comes the moment of truth. Let’s put both locations head-to-head.

Taxes and Costs in Detail

Here are the bare numbers that really count:

But beware—these figures don’t tell the whole story:

Malta’s Tax Trick: The nominal corporate tax is 35%, but via the imputation system, shareholders get 6/7 of the tax paid refunded. You effectively pay just 5%.

Dubai’s hidden costs: Employee visa fees (15,000-25,000 AED per person annually) and minimum capital requirements (1 million AED for some licenses) are often overlooked.

A realistic example for a medtech startup with €500,000 annual profit:

• In Dubai: 45,000 AED corporate tax + 50,000 AED additional costs = approx. €26,000 total burden
• In Malta: €25,000 effective corporate tax + €10,000 additional costs = approx. €35,000 total burden
• In Germany: €150,000 corporate tax + additional costs = approx. €160,000 total burden

Market Access and Distribution Opportunities

Here are the fundamental differences between both locations:

Dubai as a springboard to Asia and Africa:

• Direct access to 2 billion people
• Established trade routes to India, China, and Africa
• No import duties for many medical products
• Strong growth in regional healthcare markets

Malta as an EU gateway:

• Direct access to 450 million EU citizens
• Harmonized regulation across the EU
• Established sales channels and partner networks
• High purchasing power and stringent quality standards

The key question is:

Where is your target market? If you offer innovative medical devices for developed markets, Malta is often the better choice. For affordable solutions targeting emerging markets, Dubai has the edge.

Regulatory Hurdles and Compliance Requirements

This can get technical, but these details can determine success or failure:

Dubai Healthcare Free Zone:

• DHCA license required: Dubai Health Care Authority approval for all medical devices
• GCC standards: Gulf Cooperation Council guidelines must be followed
• Local partner: An Emirati partner is required for some activities
• Substance requirements: Genuine local business activity must be demonstrated

Malta Life Sciences Centre:

• EU MDR compliance: Medical Device Regulation must be met
• Notified Body: Designated organization for conformity assessment required
• EUDAMED registration: European medical device database
• Malta Enterprise registration: Easy company formation without a local partner

A critical point many overlook:

In Dubai, you often need dual certification—once for the local market and again for export markets. In Malta, one EU certification covers the entire single market.

But Dubai has an edge in speed:

DHCA approvals often take only 30–60 days, while EU MDR processes can stretch to 6–18 months.

Practical Implementation: How to Choose the Right Location for Your MedTech Company

Enough theory. Let’s get practical and figure out which location suits you best.

Decision Checklist for Location Selection

I’ve developed a systematic checklist that I review with all my clients:

1. Market Analysis (40% of the decision):

• Where are your main customers?
• Which regulatory standards apply in your target markets?
• How important is geographic proximity for your business model?
• Are you planning primarily B2B or B2C sales?

2. Corporate Strategy (30% of the decision):

• Are you in the startup, growth, or scale-up phase?
• How capital-intensive is your business model?
• Do you require access to specialized professionals?
• Is R&D a critical success factor?

3. Personal Factors (20% of the decision):

• Where do you want to live long-term?
• How important is cultural closeness to Germany for you?
• Do you have family relocating with you?
• Which languages do you speak fluently?

4. Financial Considerations (10% of the decision):

• What is your projected annual profit?
• Can you meet the minimum capital requirements?
• How important is immediate liquidity vs. long-term tax optimization?

Based on this analysis, my recommendation:

Choose Dubai if:

• Your target markets are in Asia/Africa/Middle East
• You develop affordable medical products for emerging markets
• Fast market entry is more important than EU compliance
• You can manage international teams remotely

Choose Malta if:

• Europe is or will become your main market
• You develop innovative, high-quality medical products
• EU regulation and compliance are critical
• You value cultural proximity to Germany

First Steps to Set Up

Once you’ve decided, it’s time to act. Here’s my proven step-by-step guide:

For Dubai Healthcare Free Zone:

1. Initial Assessment (Week 1–2):
   • Schedule appointment with DHCC Authority
   • Define license type (Trading, Manufacturing, Distribution)
   • Plan minimum capital and office space
2. Document Preparation (Week 3–4):
   • Have articles of association drafted
   • Obtain apostilled documents from Germany
   • Apply for Emirates ID
3. License Application (Week 5–8):
   • Submit DHCC License Application
   • Rent office space in the Free Zone
   • Open a bank account (usually Standard Chartered or ADCB)
4. Operational Launch (Week 9–12):
   • Apply for employee visas
   • Establish local compliance structure
   • Document initial business activity

For Malta Life Sciences Centre:

1. Preparation Phase (Week 1–2):
   • Contact Malta Enterprise
   • Select legal form (usually Private Limited Company)
   • Set up registered address
2. Company Formation (Week 3–4):
   • Draft Memorandum & Articles of Association
   • Register with Malta Business Registry
   • Register for tax with Inland Revenue
3. EU Compliance (Week 5–8):
   • Apply for EORI number
   • VAT registration (if required)
   • Initiate MDR conformity assessment
4. Business Development (Week 9–12):
   • Rent office space in the Life Sciences Centre
   • Apply for EU funding
   • Develop local partnerships

Common Mistakes and How to Avoid Them

After more than 10 years of consulting, I know the typical pitfalls. Here are the mistakes I see time and again:

Mistake 1: Pure tax optimization with no substance

Many German entrepreneurs think they can just set up a shell company abroad and save taxes. That’s no longer how it works.

Solution: Plan for real business activity from day one. In Dubai, that means at least two full-time employees, in Malta at least one.

Mistake 2: Underestimating ongoing compliance costs

Startup costs are just the tip of the iceberg. Ongoing audit, compliance, and renewal expenses can be significant.

Solution: Budget for at least €50,000 annually in Dubai, and at least €25,000 in Malta for compliance costs.

Mistake 3: Overlooking German tax consequences

Just because you’re based abroad doesn’t automatically exempt you from German tax liability.

Solution: Have your German tax affairs professionally reviewed before relocating. Issues like exit taxation and CFC rules have to be considered.

Mistake 4: Underestimating cultural differences

Business in Dubai or Malta works differently from Germany. In medtech, this can be critical.

Solution: Invest time in building local relationships. Networking is key in Dubai; EU regulations rule in Malta.

Mistake 5: Poor due diligence of local partners

Finding the right local partners is crucial—especially in new markets.

Solution: Carry out thorough background checks and work only with regulated, established partners.

A final personal tip:

Whatever location you choose—take it step by step. Start with a 6–12 month test phase before burning all bridges back to Germany.

This way, you minimize risks and can find out first-hand whether the chosen location is truly a good fit for your business.

Frequently Asked Questions

Can I set up a company in Dubai or Malta from Germany?

Yes, but with some limitations. In Dubai, a personal visit is required for the Emirates ID and to open a bank account. In Malta, you can theoretically do everything remotely, but opening a bank account usually requires a visit.

What are the minimum capital requirements?

In Dubai, you need at least 1 million AED (approx. €272,000) share capital for a DHCC license for some activities. In Malta, €1,165 minimum capital is sufficient for a Private Limited Company.

What visa options are available for German nationals?

Dubai offers investor visas (valid for 2–10 years) for shareholders. Malta, as an EU country, allows German citizens to stay without any additional visa requirements.

How are dividends taxed?

In Dubai, dividends are 100% tax-free. In Malta, dividends are taxable for the recipient, but through the imputation system, you get 6/7 of the corporate tax paid refunded.

What accounting requirements apply?

Dubai requires annual audits for companies with revenues over 3 million AED. Malta requires audits for companies that meet two of three thresholds: turnover above €700,000, balance sheet total over €350,000, or over 10 employees.

Can I simply transfer my German company?

No, a direct transfer is not possible. You need to set up a new company and then transfer assets and operations. This often triggers German taxation (exit tax).

What support is available for medtech startups?

Dubai offers DHCC incubator programs and mentoring. Malta has dedicated grants for life sciences companies and access to EU funding programmes like Horizon Europe.

What about double taxation agreements?

Both Dubai and Malta have double taxation agreements with Germany. This prevents double taxation, but German CFC rules can still apply.

What industry-specific regulations apply for medtech?

In Dubai, you must obtain DHCA approvals for all medical devices. In Malta, EU MDR regulations apply. Both locations have fast-track procedures for certain product categories.

How long does the relocation process take?

In Dubai, expect 3–4 months for full setup, including visas and a bank account. In Malta, it’s faster: 6–8 weeks for full company formation with EU compliance.