Dubai’s favorable tax and business environment attracts many European entrepreneurs. However, it’s essential to understand the obligations towards EU authorities and comply with applicable regulations to ensure smooth and lawful operation.
1. Privacy & Confidentiality in Dubai
• Dubai offers a high level of business confidentiality, though not full anonymity.
• Free Zone company ownership is not publicly disclosed, but can be accessed by authorities upon official request.
• Financial institutions comply with strict data protection laws. Still, some data may be shared internationally due to information exchange agreements.
2. Corporate & Ownership Registries
• For Free Zone companies, ownership details are private, but accessible to government agencies.
• For Mainland companies, partial ownership data may be publicly visible.
• Offshore companies offer higher discretion, but remain subject to international treaties and information sharing protocols.
3. CRS and AEOI information exchange
• Dubai has joined the CRS (Common Reporting Standard) automatic exchange of information agreement.
• Dubai banks automatically transfer financial data of foreign owners to the owners' countries of tax residence.
• This means that NAV and other EU tax authorities are automatically informed about the financial movements of Dubai companies.
4. Your Obligations Toward EU Authorities
• Report income and dividends earned from your Dubai company to your local tax authority.
• Due to the CRS information exchange, NAV is automatically informed about your bank accounts in Dubai.
• Comply with CFC (Controlled Foreign Company) rules if your Dubai entity lacks genuine business activity.
5. How to Ensure Full Compliance
• Establish genuine economic substance (e.g., real office, employees, active operations)
• Maintain accurate records and perform regular financial audits
• Work with legal advisors to ensure CRS (Common Reporting Standard) compliance
Operating a Dubai-based business offers real advantages, but maintaining full compliance with EU and local regulations is crucial for long-term stability and freedom.
You can maximize the benefits of your Dubai company if you comply with international information exchange regulations and properly prepare for reporting to EU authorities.
We offer expert guidance backed by 10+ years of experience helping entrepreneurs leverage Dubai’s benefits the right way. Book your free consultation now — and let us help you run your business with freedom, confidence, and full compliance.
