EUROPE → UAE

Moving your business from Europe to Dubai: check your exit tax first

Short answer

Each European country sets its own residency rules, and some tax you when you leave.

Germany is a clear example. Leaving can be taxed as if you sold your company shares.

By Sawan Kumar, Chartered Accountant (ICAI), Dubai. Facts checked against the linked sources on 2026-11-03.

Germany: the exit tax on company shares

Section 6 of the German Foreign Tax Act (AStG). The official text is in German.

It covers shares where you held at least 1% of a company at any time in the last five years. Source
It applies if you were fully taxable in Germany for at least 7 of the last 12 years. Source
Giving up your German home or usual residence is then treated as selling those shares at fair value. Source
You can apply to pay the tax in 7 equal yearly instalments. This usually needs security. Source
If you return to full German tax liability within 7 years, the tax can fall away, under conditions. Source

Rules differ by country. Check your national tax authority before you plan the move.

Most mainland companies can now be 100% foreign owned. Some activities of strategic importance can still carry limits. Source
UAE Corporate Tax is 0% on taxable income up to AED 375,000 and 9% above that. Source
A Qualifying Free Zone Person pays 0% on Qualifying Income. Its other taxable income is taxed at 9%. Source
Every taxable business must register for Corporate Tax, including free zone businesses. Source

Does Germany tax me when I move to Dubai?

It can. If you hold at least 1% of a company and meet the 7-of-12-years test, leaving is treated as selling the shares.