Tax Advisor Bremen Dubai: Your Bridge to 9% Taxes

Last week, a local Bremen entrepreneur called me. His question was typical of what I hear every day:

Richard, I run my online business out of Bremen. My clients are worldwide. Why am I paying almost 50% tax here, when Dubai only charges 9%?

Valid point, right?

As a tax mentor, I see lots of entrepreneurs in Bremen who think internationally. Its in the citys DNA. After all, Bremen has been trading with the world for centuries.

Today, Ill show you how, as a Bremen-based entrepreneur, you can leverage Dubai structures intelligently—without falling into legal pitfalls.

Because one thing is clear: tax optimization only works if its legally watertight.

Yours, RMS

Dubai Business in Bremen: An Overview

Bremen and Dubai have more in common than you might think. Both are commercial hubs. Both thrive on international business. And both understand what entrepreneurs need.

The figures speak for themselves: Over 180 Bremen-based companies already have ties to the UAE—including maritime businesses, logistics providers, and IT service firms.

Why Bremen-Dubai Structures Are Booming

As someone from Bremen, you know your locations strengths: the free port, excellent logistics via Bremerhaven, and a long-standing openness to global business.

But from a tax perspective, you still pay steeply:

• Corporate income tax: 29.8% (Bremen)
• Trade tax: 15.47% (City of Bremen)
• Solidarity surcharge: 1.58%
• Total tax burden: Up to 46.86%

By contrast, in Dubai: 9% corporate tax from AED 375,000 annual profit. Below that: 0%.

The difference is drastic.

Bremen as a Gateway to Dubai

What many local entrepreneurs dont realize: Bremen is an ideal launchpad for Dubai business. The Überseestadt district is developing into a logistics hub for the Middle East. Lufthansa Cargo flies direct to Dubai. And Bremens maritime know-how is highly sought after in the UAE.

And yet, I keep hearing the same concerns:

Is this even legal? I dont want any trouble with the Bremen tax office.

Fair enough. Thats why today, Ill explain how to do it the right way.

Top Tax Advisors for Dubai Business in Bremen and Surroundings

Heres a reality check: Not every tax advisor in Bremen understands Dubai structures. This requires specialist knowledge. International tax planning takes expertise across multiple legal systems.

What Makes a Good Dubai Tax Advisor in Bremen

After 15 years of experience, I know these are the key qualities:

1. International experience: Familiarity with UAE law and German international tax law
2. Practical Dubai experience: Ideally, hands-on business activity in the UAE
3. Local Bremen insight: Understanding the mentality of Bremen entrepreneurs
4. Double taxation agreements: In-depth knowledge of the Germany-UAE treaty
5. Substance verification: Ability to establish genuine business operations

Types of Tax Advisors in Bremen: An Overview

Regional Expertise Available

In Bremen and the surrounding area youll find various approaches to consulting:

Bremen city center: Traditional firms with strong local roots. Ideal for classic tax advice, but usually limited Dubai experience.

Überseestadt Bremen: Newer firms with an international focus. Greater awareness of maritime business and international structures.

Bremen North/Vegesack: Often maritime-oriented consulting. Familiar with global shipping structures.

Lower Saxony (outskirts): Similar tax rules as Bremen, but different local tax rates.

My tip: Find an advisor who understands both worlds. Bremen AND Dubai.

UAE Offshore Structures: What Bremen Entrepreneurs Need to Know

UAE offshore structures arent what many people think. Its not about tax evasion. Its about legal tax planning with real substance.

The Most Common Dubai Structures for Bremen Entrepreneurs

1. Dubai Mainland Company

An entity fully licensed to operate in the UAE market. Requires a local partner (51%) or UAE national. Often impractical for entrepreneurs based in Bremen.

2. Dubai Free Zone Company

100% foreign ownership possible. Different zones for different types of business:

• DMCC: Commodity trading (ideal for trading firms from Bremen)
• DIFC: Financial services
• Dubai Internet City: IT and technology
• JAFZA: Import/export (perfect for Bremerhaven connections)

3. RAK ICC (Ras Al Khaimah)

Often cheaper than Dubai. Full access to the UAE market. Particularly attractive to smaller Bremen businesses.

Substance Requirements: What You Must Observe

This is where things get specific. Germany only recognizes Dubai structures if there is actual substance. This means:

The Bremen-Dubai Bridge: Practical Implementation

Here’s a typical scenario from my practice:

Thomas runs an IT consultancy in Bremen-Schwachhausen. His clients are in Europe, the USA, and Asia. He works remotely and could theoretically operate from anywhere.

His Dubai structure:

1. Freezone company at Dubai Internet City
2. Office via co-working space with fixed address
3. Local staff member for admin and customer service
4. Thomas spends 6 months per year in Dubai
5. Substance via real UAE clients and projects

Result: tax rate of 9% instead of 46.86% in Bremen. With €200,000 profit, he saves over €75,000 annually.

But caution: this only works with genuine substance and correct setup.

Bremen & Dubai: Rethinking Traditional Trade Relations

Bremen has traded with the Middle East for over 150 years. As early as 1872, the first steamships sailed from Bremen to Basra. Today, Dubai is the key gateway for Bremen business in the region.

Historic Connections as a Tax Advantage

These historic ties help today when justifying substance. If you’re a Bremen entrepreneur building Dubai operations, you can point to real trade relations.

Concrete Bremen examples:

• Coffee trade: Traditionally strong Bremen-Dubai links
• Maritime services: Bremen expertise highly sought-after in Dubai
• Logistics: Bremerhaven-Dubai as an important trade route
• Wind energy: Bremen tech for UAE projects

Why Bremen Tax Authorities Accept Dubai Structures

Bremen tax authorities are familiar with international business. The city depends on it. Thats why Dubai structures are less suspicious here than in many other German cities.

Still, you must play by the rules:

Real business operations in Dubai are crucial. Shell companies dont work anymore.

Bremen as a Test Market for Dubai Structures

Interesting fact: Bremen is an excellent test market for Dubai strategies. Why?

1. International mindset: Bremen residents grasp global business
2. Compact size: Easy-to-navigate government structures
3. Maritime tradition: Used to complex international structures
4. Practical experience: Plenty of successful Bremen-Dubai examples

Practical Steps: Building Your Dubai Structure from Bremen

Here’s where it gets concrete. Your step-by-step guide to setting up a Dubai structure from Bremen.

Phase 1: Preparation in Bremen (Weeks 1-4)

Week 1: Analysis

• Calculate current tax burden
• Check if your business model is fit for Dubai
• Identify international clients
• Assess personal willingness to relocate to Dubai

Week 2: Legal Foundations

• Find a tax advisor with Dubai expertise
• Study the double taxation agreement
• Define substance requirements
• Set a timeline for moving residency

Week 3: Financial Planning

• Calculate setup costs (€15,000-€25,000)
• Plan running costs (€20,000-€40,000/year)
• Calculate your break-even point
• Secure liquidity for your first Dubai stay

Week 4: Finalizing Strategy

• Select your free zone
• Develop a visa strategy
• Set your timeline
• Plan the Bremen-Dubai connection

Phase 2: Incorporation in Dubai (Weeks 5-8)

Now it’s time for Dubai. Allow at least 2-3 weeks on the ground.

Phase 3: Building Substance (Months 3–12)

This is the decisive phase—building authentic business activity.

Month 3-6: Basic Setup

• Hire local staff member (€2,000–€4,000/month)
• Secure your first UAE clients
• Establish business processes onsite
• Spend at least 90 days in Dubai

Month 6-12: Expansion

• Expand business activity
• Hire more employees as needed
• Formally change tax residency
• Keep Bremen as a secondary home

The Bremen-Dubai Balance

Many of my Bremen clients choose this model:

• 6 months in Dubai: October to March (pleasant weather)
• 6 months in Bremen: April to September (family, friends)
• Tax residency: Dubai (more than 183 days)
• Business activity: Focus on Dubai, services also in Germany

This setup works especially well for people from Bremen because:

1. Bremen has an international mindset—Dubais business culture is well understood
2. Direct flights from Frankfurt (1.5h from Bremen)
3. Time zone allows business with Europe AND Asia
4. Both cities value openness and diversity

Tax Optimization: Structuring Bremen-Dubai Setups the Right Way

Here are the key tax aspects for Bremen entrepreneurs with Dubai structures.

The German Foreign Tax Act (AO) and Bremen

The AO applies nationwide in Germany, but how its enforced can depend on your local tax office. Bremen has an advantage here:

Bremen’s tax office is used to international structures. Auditors know maritime business and complex trade setups.

How to Avoid Controlled Foreign Corporation (CFC) Taxation

The dreaded CFC rules apply if:

• You hold more than 50% in the Dubai company AND
• The company earns passive income AND
• Foreign tax is below 25%

Solution for Bremen entrepreneurs:

1. Active business operations: Real services in Dubai
2. Proof of substance: Employees, office, local clients
3. Documentation: Keep meticulous records

Practical Tax Optimization

Heres a case from my Bremen practice:

Starting point: Online marketing agency in Bremen-Findorff

• Annual turnover: €500,000
• Profit: €300,000
• Tax burden in Bremen: approx. €140,000

Dubai structure:

• Dubai Internet City license
• 70% of clients are international
• 1 full-time employee in Dubai
• Managing director spends 6 months in Dubai

Tax allocation:

Savings: €56,210 per year (40% less tax)

Avoiding Pitfalls

These are mistakes I often see with Bremen entrepreneurs:

1. Too little substance: Shell company with no real activity
2. Wrong residency: Too many days spent in Germany
3. Poor documentation: No proof of Dubai operations
4. Impatience: Trying to build the structure too quickly
5. Ignoring compliance: Failing to meet reporting requirements

Frequently Asked Questions on Dubai Tax Consulting in Bremen

Can I keep my Bremen company and still benefit from Dubai?

Yes, but only to a certain extent. You can set up a Dubai company for international business and keep your Bremen firm for German clients. Key point: strictly separate activities, no mixing of client bases.

How long does it take to set up a fully operational Dubai structure from Bremen?

Expect 6–12 months to build a substantial structure. The setup itself only takes 2–4 weeks, but establishing real business activity takes time.

Which free zone is best for Bremen entrepreneurs?

Depends on your business model. DMCC for trading, Dubai Internet City for IT/online business, DIFC for financial services. Many in Bremen choose DMCC due to the trading tradition.

Do I have to give up my apartment in Bremen?

No. You can keep your residence in Bremen and still become a tax resident in Dubai. What matters is your actual days of presence (more than 183 days in Dubai).

How does the Bremen tax office view Dubai structures?

Usually neutral, as long as there’s real substance. Bremen is used to international business. Key: full transparency and clean documentation.

How much does a Dubai structure cost for a Bremen entrepreneur?

Setup costs: €15,000–€25,000. Ongoing costs: €30,000–€50,000 per year (including office, staff, visas). It’s worthwhile from around €100,000 annual profit.

Can I take my employees from Bremen to Dubai?

Yes, but subject to requirements. EU citizens need work visas for Dubai. Alternative: remote work from Bremen for the Dubai entity (note tax nuances).

How does Brexit affect Bremen-Dubai structures?

Positively. Dubai is increasingly seen as an alternative to the UK for European business. Bremen entrepreneurs can bridge this gap and benefit from both markets.

Which sectors work particularly well with Bremen-Dubai structures?

Online business, consulting, trade, maritime services, IT services, import/export. In general, any location-independent, internationally oriented business model.

Is Dubai safe for German businesspeople?

Yes. Dubai is one of the safest countries in the world. German citizens enjoy high levels of protection. The legal system is business-friendly and transparent.

How is Dubai different from other tax havens?

Dubai is not a classic tax haven. It’s a real business hub, with substance requirements. This means structures are legally safer, but also require more effort.

What happens during a tax audit in Bremen?

If your structure and documentation are clean, no problems. Be prepared: flight tickets, hotel bills, business documents from Dubai, employee contracts. Transparency is crucial.