Why UAE is a Perfect Choice for Investors from Europe?

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UAE has become an investor hotspot, especially for foreign investors from Europe. There are multiple reasons why the UAE is a preferred choice for investors.

The Free zones in UAE offer simplified company formation packages with a wide range of incentives to the investors. The 100% foreign ownership in the 45+ Free Zones are greatly attracting foreign investors to UAE.

What is Attracting Foreign Investment in UAE?

1. Ease of Doing Business

The UAE government’s support to promote business and trade is the most important reason. Obtaining a business license in UAE is seamless and could be as less than 1 hour depending on the license type.

Hence, the UAE offers a quick and reliable company formation ecosystem and platform via the free zones and the Department of Economic Development.

2. Infrastructure and Transport Facility

The Robust business ecosystem and infrastructure in UAE is ideal for successfully starting any business category. There are enormous networking opportunities in the UAE, also the free zones offer various technology infrastructure to support business in the UAE.

3. Banking Support

UAE has some of the world-best international and local banks. They offer a large variety of business bank account and incentives to the investors based on specific requirements. Opening a Corporate bank account in UAE is relatively easier. The Bank supports the business ecosystem in UAE greatly by offering various investment options and benefits for the corporate account holders.

4. Tax Schemes

UAE has a strong network of international tax treaties. The UAE has more than 115 Double Taxation Treaties (DTAs) in place with other countries. It will ensure business and residence are not taxed twice on the exchange of trade or services.

How to Leverage the Low Tax Rates of UAE?

To enjoy the low taxation in the UAE, foreign investors have multiple options for setting up a business in the UAE

  • Apply for a residence visa and fly in and out every 6 months
  • Conduct generating trading in the local UAE market via a local agent or distributor and expand business in the UAE
  • Setup a local LLC Company in the Mainland of Dubai
  • Setup a Free zone Company in UAE
  • Acquire a sinking company in the UAE and restructure it

The Tax rates in the UAE are very low compared to Europe, the US, and most of the other business hubs of the world. Thus, businesses based in UAE will be enjoying low tax or tax-free status. The only tax for corporates and individuals here is the VAT (5%) on services and goods transacting in the UAE market.

So, company formation is a lucrative investment and a tax saving mechanism for most of the investors from European and other high tax countries.

5. Diversity of Business and Enormous Growth Opportunities

Businesses in the UAE are spread across a wide range of activities. The diversity of business has given rise to emerging opportunities across various industry sectors. To speed up growth in certain specific sectors, the UAE government has introduced many initiatives like long term visas, foreign investments, infrastructure support, etc.

6. Economic Stability

The UAE has a solid economy and the political climate is very sound and stable. UAE is an investment hotbed due to its strategic location, strong financial reserves, healthy international relations, business infrastructure, etc.

7. Variety of Choices for Company Formation

The flexibility to business anywhere in UAE and the enormous choices of free zones, industrial areas, and commercial establishments is making UAE stand out from the world.

8. Availability of Talent and Labour

There is a wide talent pool available in the UAE. The government of UAE has launched a new long term residence visa for a qualified workforce in health, science, technology, etc.

Also, UAE is advancing in terms of the latest technology adoption, sustainable energy, etc. There is a lot of initiative in the line of research, the latest technology, artificial intelligence, smart transportation, etc.

9. Political Stability

UAE has long-term political stability with strong diplomatic policy worldwide. As trade tensions and security issues continue to affect corporate growth elsewhere in the world, the foreign investors are looking at UAE as a prospective place to set up their base.

So, in a nutshell, foreign investors especially from high tax countries such as Germany, Italy, France, UK, etc., find UAE to be a lucrative investment destination to reduce the tax burden.

UAE Freezones – Key Benefits for the Foreign Investors

Foreigners can easily set up business establishments in the Free Zones of UAE. It offers a wide range of investor benefits such as:

  • 100% ownership
  • 100% profit repatriation,
  • Apply for a residence visa,
  • Avoid double taxation
  • World-class business infrastructure
  • Easy business setup
  • No personal or corporate tax in the UAE
  • No customs duty for imports into Free zones of UAE
  • and many more…

To know more about Foreign Investment through Company Formation in the UAE, talk to our Legal and business Experts right away!

Read more about “How Tax Residency in UAE can help Investors from Germany, Italy, the UK, and the Rest of Europe?


A Marketing Consultant working @Aurion Business Consultants specialized in writing about Business Setup in UAE tips, License Packages, Free Zones, LLC Company Formation, Startups, etc in the UAE.


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