Business in UAE – what you need to know!

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“Buy property in Dubai and you’re tax-free.”

“Register a UAE company and your home country tax problems disappear.”

Wrong. And expensive.

Every week, I see business owners who’ve fallen for these myths—costing them thousands in back-taxes, penalties, and compliance nightmares.

The truth? UAE business setup is international tax engineering, not just paperwork.


The Two Most Damaging Mistakes

Mistake #1: The Australian Tax Residency Trap

The Myth: Owning UAE property makes you tax-free in Australia.

The Reality: Property ownership doesn’t change your tax residency. If your life, time, and ties remain in Australia, you’re still an Australian tax resident.

The Consequences:

  • Australian income tax on UAE rental income
  • Capital gains tax on property disposal
  • Double taxation risks
  • Tax residency complications

Owning property is not a tax minimization strategy.


Mistake #2: UAE Company Setup Without Restructuring

The Myth: Registering a Dubai company automatically disconnects you from home country tax.

The Reality: Without proper design, you risk:

  • Corporate tax in your home country
  • Permanent Establishment issues
  • Profit allocation scrutiny
  • Compliance issues surfacing years later

Plus, the UAE now has 9% corporate tax. Your structure must reflect commercial reality, not wishful thinking.


What Proper Planning Looks Like

✓ Understanding tax residency rules in both countries
✓ Creating real substance (office, employees, operations in UAE)
✓ Aligning home country law with UAE rules
✓ Documenting everything properly
✓ Ongoing compliance as laws change


Why This Matters

I’ve seen clients face:

  • $50,000+ in back-taxes and penalties
  • 12-18 month audit nightmares
  • Forced business restructuring
  • Reputational damage

All because they thought a UAE company was a “silver bullet.”


The Tax Surgeon Approach

I call myself a Tax Surgeon because I understand:

  • Your specific facts and commercial reasoning
  • Tax law interpretation across jurisdictions
  • How to apply law to your circumstances
  • Identifying risks before they become expensive problems

For me, people, relationships, and trust are everything. Break one, you break all.


Who Needs This?

  • Australian expats buying UAE property or relocating
  • E-commerce entrepreneurs expanding globally
  • Remote consultants and freelancers
  • Business owners setting up UAE entities
  • High-net-worth individuals seeking tax optimization

Key Takeaways

🔹 Property ownership ≠ tax residency change
🔹 UAE company ≠ automatic tax freedom
🔹 Substance matters more than paperwork
🔹 Home country and UAE rules must align
🔹 Doing it wrong costs far more than doing it right


Ready to Structure Your UAE Business Properly?

Don’t let myths cost you thousands. Speak to someone who understands both your home country law and UAE rules.

Book a consultation with Saby + Partners.


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