Invest in Dubai with Confidence
At DXBeco, we simplify your journey into Dubai’s booming real estate market. Our comprehensive FAQ page answers all your key questions, from tax implications to securing a residency visa. Whether you’re a seasoned investor or new to the market, we’ve got you covered. Make informed decisions and invest in Dubai with confidence, knowing DXBeco is by your side.
FAQs
Are you considering investing in Dubai's vibrant property market? At DXBeco, we understand that informed decisions lead to successful investments. That’s why we’ve crafted an in-depth FAQ page that covers everything you need to know—whether you’re a first-time buyer, a seasoned investor, or a tenant. From understanding VAT and taxes to navigating freehold ownership and visa options, our FAQ page is your go-to resource for all things real estate in Dubai.
1. Is VAT applicable on business activities in Dubai?
Answer: Yes, VAT at 5% applies to most business activities in Dubai. Businesses exceeding the annual revenue threshold must register for VAT and comply with reporting obligations.
2. Do I need to pay tax on business profits if I live abroad?
Answer: Dubai offers a tax-free environment for most businesses, with no corporate or income tax on profits. However, global tax obligations might apply depending on your home country’s laws.
3. Can I obtain a residency visa by starting a business in Dubai?
Answer: Yes, setting up a business in Dubai qualifies you for a residency visa. The visa duration depends on the business type, investment amount, and jurisdiction (mainland or free zone).
4. What is a free zone company?
Answer: Free zone companies offer 100% foreign ownership, tax exemptions, and streamlined setup processes. However, they are restricted from directly trading in the UAE mainland without a local distributor.
5. What are the steps involved in forming a business in Dubai?
Answer: The process includes choosing a business activity, registering the trade name, selecting a legal structure, applying for a business license, and obtaining necessary approvals from relevant authorities.
6. What are the typical charges when forming a business in Dubai?
Answer: Costs include trade name registration, licensing fees, office space rental, and visa fees. Additional charges may apply depending on the business structure and activity.
7. What is the role of the Department of Economic Development (DED) and free zone authorities?
Answer: The DED regulates and licenses businesses in the Dubai mainland, while free zone authorities oversee business operations within their respective zones, offering unique benefits and incentives.
8. What are the typical office and operational costs?
Answer: Office costs vary by location and type (shared or private), and operational costs include utilities, employee salaries, and administrative fees.
9. Can I terminate my business early?
Answer: Early business termination involves canceling licenses, settling debts, and closing bank accounts. Depending on the lease and other agreements, penalties may apply.
10. What payments are required when setting up a business?
Answer: Initial payments include licensing fees, office rent, visa costs, and, if applicable, a capital deposit. Free zones may offer packages that include several of these costs.
