Using Dubai as a tax haven
I am British and want to startup my company in Dubai. What kind of issues will I run into if I want to use the money in UK, USA or anywhere else in the world?
3 Answers
You'll have no issues using the money in the UK, because you will already have been required to declare it on your UK tax return and pay tax on it in the UK, unless you wish to evade UK tax and thus become a criminal. Only registered non-doms can legally avoid paying tax on their overseas earnings, and you're clearly not a non-dom because you say you're British.
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Err, no. A company that someone owns is not the same as the person. – Marcin 13 years ago
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tax evasion and tax avoidance/mitigation are two separate issues. there are ways to build capital in tax havens without paying domestic income tax because profit generated by the corporation/limited liability company does not have to be immediately disbursed to the owner as income. – Henry The Hengineer 13 years ago
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While I'm aware that money can be built up in an offshore company, the original question was about money that the questioner will be spending, which means that it has to have been withdrawn from the company as salary or a dividend (or perhaps a capital gain if he sells all or part of the company), which means that it has to have been declared on his tax return. – Mike Scott 13 years ago
+1 @Mike Scott
Also, don't think you can just waltz into Dubai and start a business. Not sure of the actual percentage, but you have to give at least 40%-50% ownership to an Emirati. You cannot own 100% of your business. The profits have to end up in the pockets of its citizens. You may as well pay tax in your own country.
If you want an alternate solution, you can start a business in Aqaba, Jordan. That's a duty free zone. Still, you have to pay income tax.
Get individual legal and tax advice. That is the only relevant advice here.
If offshore tax havens are suitable for your situation, there are plenty closer to home (including potentially Belgium and Luxembourg).
