Dubai Healthcare Free Zone vs. Malta Life Sciences Centre: La comparación definitiva de ubicaciones para empresas de tecnología médica alemanas

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

Let’s start with Dubai – a location that has really stirred up the MedTech world in recent years.

What makes the Dubai Healthcare Free Zone so special?

Dubai Healthcare City (DHCC) is more than just a business park with tax perks. 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 count:

• Over 150 MedTech companies from 40 countries have already set up operations here
• 60% cost savings on office space compared to London or Singapore
• Direct access to a market of 2 billion people across the Middle East, Africa and Asia
• Zero-visa policy: Business partners from more than 70 countries don’t need a visa

What impresses me in particular: Dubai has recognised that MedTech needs more than just cheap offices. That’s why DHCC offers complete research facilities, test labs, and even its own hospital for product testing.

But here’s the decisive point:

Dubai works especially well for companies aiming to tap into the Asian and African markets. The geographical location is simply unbeatable – from Dubai, you reach India in 3 hours, Europe in 6 hours.

Tax benefits and incentives for MedTech companies

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

Since 2023, the UAE has applied a corporate tax rate of 9%. That may sound like a step back for those who previously benefited from 0%.

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 indefinitely

But beware – here lies a pitfall:

Many German entrepreneurs overlook the substance requirements. Dubai requires real economic activity on site. This means: at least two qualified employees, suitable office space and proven business operations.

Infrastructure and cluster effects in Dubai

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

Imagine: you land at 8 am in Dubai, are in your office by 9, and by 10 you can already attend your first meeting in the neighbouring hospital. That’s how DHCC works.

The main infrastructure advantages:

1. Integrated healthcare system: Hospital, research facilities and businesses under one roof
2. State-of-the-art laboratories: Complete testing facilities for medical devices
3. Regulatory services: Emirates Health Authority on site
4. Logistics hub: Direct connection to Dubai International Airport
5. 24/7 support: Technical and administrative support around the clock

The cluster effect really works here.

A concrete example from my experience:

A German manufacturer of pacemakers was able to shorten its product development time by 40% thanks to the proximity to local clinics. Direct contact to doctors and patients made all the difference.

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

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

Malta Life Sciences Centre: Europe’s emerging biotech hub

Let’s change perspective and look at Malta – a site many underestimate.

Malta as a gateway to the European MedTech market

Malta may be small, but that’s deceptive. With its strategic location in the Mediterranean, the country has become a genuine insider’s tip for life sciences businesses.

Here are the facts that convince:

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

What really impresses me in Malta: the government has understood that life sciences are the future. That’s why it is investing massively in infrastructure.

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

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

A 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.

Specifically, this means:

But here’s the crux:

Malta has recognised that MedTech businesses have special needs.

The Malta Medicines Authority (MMA) processes applications for Class I and II medical devices in an average of 45 days. For comparison: in Germany, this often takes 6 months.

Another advantage many miss:

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

Focus on life sciences and innovation

Malta consciously opts for quality over quantity. The country focuses on high-value sectors like life sciences, gaming and fintech.

For MedTech businesses, this means:

1. Dedicated support: Malta Enterprise offers specialised advice for life sciences firms
2. Tax incentives: Up to 25% investment grants for R&D projects
3. Talent pipeline: Specialised university degrees at University of Malta
4. Networking: Regular life sciences conferences and events
5. EU funding: Access to Horizon Europe and other EU programmes

A concrete example from my consulting practice:

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

But Malta also has its limits:

The local market is tiny – just 500,000 inhabitants. If you mainly serve local customers, Malta is definitely not the right location.

Plus, wages have risen sharply in recent years. Highly qualified software developers now cost almost 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 side by side.

Taxes and costs compared in detail

Here are the bare numbers that really count:

But beware – these numbers don’t tell the whole story:

Maltas tax trick: The nominal corporate tax is 35%, but via the refund system you get 6/7 of the tax paid back as shareholder. Effectively, you pay only 5%.

Dubais hidden costs: Visa costs for staff (15,000-25,000 AED per person per year) and minimum capital requirements (1 million AED for some licences) are often overlooked.

A realistic calculation for a MedTech startup with €500,000 annual profit:

• In Dubai: 45,000 AED corporate tax + 50,000 AED overhead = ~€26,000 total cost
• In Malta: €25,000 effective corporate tax + €10,000 overhead = ~€35,000 total cost
• In Germany: €150,000 corporate tax + overhead = ~€160,000 total cost

Market access and sales opportunities

This is where the fundamental differences between both locations show:

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 healthcare market growth in the region

Malta as an EU gateway:

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

The key question is:

Where is your target market? If you offer innovative medical products for developed markets, Malta is often the better choice. If you develop cost-effective solutions for emerging markets, Dubai shines.

Regulatory hurdles and compliance requirements

This gets technical, but these details can decide success or failure:

Dubai Healthcare Free Zone:

• DHCA licence required: Dubai Health Care Authority approval for all medical products
• GCC standards: Gulf Cooperation Council guidelines must be met
• Local partner: For some activities an Emirati partner is required
• Substance requirements: Real on-site business activity must be proven

Malta Life Sciences Centre:

• EU MDR compliance: Medical Device Regulation must be followed
• Notified body: Notified body for conformity assessment required
• EUDAMED registration: European database for medical devices
• Malta Enterprise registration: Simple company formation without local partner

A critical point many overlook:

In Dubai, you often need dual certification – once for the local market and once for export markets. In Malta, a single EU certificate covers the whole single market.

But Dubai has an advantage in speed:

DHCA approvals often take just 30-60 days, while EU MDR procedures can take 6-18 months.

Practical implementation: How to choose the right location for your MedTech company

Enough theory. Let’s get practical and find out which site best fits your needs.

Checklist for location decisions

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

1. Market analysis (40% of decision):

• Where are your most important customers?
• Which regulatory standards apply in your target markets?
• How important is geographical proximity for your business model?
• Is your main focus B2B or B2C sales?

2. Company strategy (30% of decision):

• Are you in the startup, growth or scaling phase?
• How capital-intensive is your business model?
• Do you need access to specialised professionals?
• Is R&D a key success factor?

3. Personal factors (20% of decision):

• Where do you want to live long term?
• How important is cultural proximity to Germany?
• Do you have family who will need to move?
• Which languages do you speak fluently?

4. Financial considerations (10% of decision):

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

Based on this analysis I recommend:

Dubai if:

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

Malta if:

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

First steps for establishment

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

For Dubai Healthcare Free Zone:

1. Initial assessment (week 1-2):
   • Book appointment with DHCC authority
   • Define licence type (trading, manufacturing, distribution)
   • Plan minimum capital and office space
2. Document preparation (week 3-4):
   • Have articles of association drawn up
   • Obtain apostilled documents from Germany
   • Apply for Emirates ID
3. Licence application (week 5-8):
   • Submit DHCC licence application
   • Rent office in the Free Zone
   • Open bank account (usually Standard Chartered or ADCB)
4. Operational launch (week 9-12):
   • Apply for staff visas
   • Set up local compliance structure
   • Document first business activity

For Malta Life Sciences Centre:

1. Preparation phase (week 1-2):
   • Contact Malta Enterprise
   • Choose legal form (usually private limited company)
   • Organise registered address
2. Company establishment (week 3-4):
   • Prepare 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)
   • Start MDR compliance assessment
4. Business set-up (week 9-12):
   • Rent office in Life Sciences Centre
   • Apply for EU funding
   • Develop local partnerships

Common mistakes and how to avoid them

With over 10 years of consulting experience, I know the typical pitfalls. Here are the most common mistakes I see time and again:

Mistake 1: Focusing only on tax optimisation without substance

Many German entrepreneurs think they can just set up a shell company and save tax. That no longer works.

Solution: Plan for real business activities on site right from the start. In Dubai this means at least 2 full-time employees, in Malta at least one.

Mistake 2: Underestimating ongoing compliance costs

Establishment costs are only the tip of the iceberg. Ongoing audit, compliance and renewal costs can be substantial.

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

Mistake 3: Neglecting German tax implications

Just because you are based abroad doesn’t mean you are automatically exempt from German tax.

Solution: Have your German tax situation checked professionally before emigrating. Topics like exit taxation and CFC rules must be considered.

Mistake 4: Misjudging cultural differences

Doing business in Dubai or Malta is different from Germany. This can be critical, especially in the sensitive MedTech sector.

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

Mistake 5: Inadequate due diligence on partners

Especially in new markets, choosing the right local partners is critical.

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

A final personal tip from me:

No matter which location you choose – do it step by step. Start with a 6–12 month test phase before cutting all ties to Germany.

This way you minimise risks and can experience first-hand whether your chosen location really fits you.

Frequently asked questions

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

Yes, but with limitations. In Dubai, a personal appointment on site is mandatory for Emirates ID and opening a bank account. In Malta you can theoretically do everything remotely, but typically a visit is required for opening a bank account.

What are the minimum capital requirements?

In Dubai you need at least 1 million AED (approx. €272,000) paid-up capital for a DHCC licence for certain activities. In Malta, €1,165 minimum capital is sufficient for a private limited company.

What visa options are there for German nationals?

Dubai offers investor visas (valid 2–10 years) for shareholders. Malta, as an EU country, allows German nationals unrestricted residence without an additional visa.

How are dividends taxed?

In Dubai, dividends are 100% tax-free. In Malta, dividends are taxed at the recipient’s level, but under the refund system you get 6/7 of the corporate tax back.

What accounting requirements apply?

Dubai requires annual audits for revenues over 3 million AED. Malta requires audits for companies meeting two of three criteria: revenue over €700,000, balance sheet total over €350,000, or more than 10 employees.

Can I simply transfer my German business?

No, a direct transfer isn’t possible. You have to set up a new company and can then transfer assets and business activities. German taxes (exit tax) often apply in this process.

What support is available for MedTech startups?

Dubai offers incubator programmes and mentoring via the DHCC. Malta has special grants for life sciences firms and access to EU funding programmes such as Horizon Europe.

What about double taxation agreements?

Both Dubai and Malta have double taxation agreements with Germany. This prevents you from being taxed twice, though German CFC-rules may still apply.

What sector-specific regulations apply for MedTech?

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

How long does full establishment take?

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