By nationality
Business setup in the UAE for German founders
German founders and Mittelstand subsidiaries use the UAE mainly as a regional sales and distribution base for the Gulf, Africa and South Asia. The German exit tax rules are the item most often overlooked.
What differs for you
Four things worth knowing.
The community here
German businesses in the UAE are concentrated in engineering, machinery, automotive, chemicals and logistics, with many operating as regional sales and distribution subsidiaries rather than standalone ventures.
The trade corridor
Germany is among the UAE's largest European trading partners, with machinery, vehicles and chemicals dominating the export mix and the UAE serving as the regional distribution base.
Population and trade figures
UAE expatriate population is approximately 10.04 million, about 88.5% of the total. Indians number roughly 4.36m (38.5%), Pakistanis 1.9m (16.7%) and Filipinos 0.78m (6.9%). Population and trade figures cited are from published 2025–26 sources.
Four things that differ for you
- Document attestation
- Germany is a party to the Apostille Convention. Apostille followed by certified Arabic translation and MoFA attestation is generally accepted.
- Double taxation agreement
- Yes — a Germany–UAE double taxation agreement is in force.
- Tax at home
- Germany taxes residents on worldwide income, and the extended limited tax liability and exit taxation rules can apply on emigration — particularly where you hold a substantial shareholding in a German company. Take German advice before deregistering, because the exit charge is triggered by the move itself.
- Banking
- Straightforward, and German corporate documentation is well understood.
Jurisdictions worth looking at
Nothing on this page is tax advice, and home-country tax rules change. The UAE side we handle; the position in Germany needs an adviser there, ideally before you move rather than after. We will say so on the first call.
Questions
Yes, in free zones and on the mainland for most activities since 2021.
Germany can tax unrealised gains on substantial shareholdings when you emigrate. It is triggered by the move itself, so take German advice before deregistering.
A branch preserves the entity but the parent carries liability directly; a subsidiary is separate but starts fresh. The consequences differ at both ends — decide deliberately.
One question
Who will be paying your invoices?
A free zone, then — full foreign ownership, and qualifying income can sit at 0% corporate tax where the substance tests are genuinely met. Confirm where the work is actually performed as well as where the client sits.
Compare the two routesOr just ask usMainland, then. Full market access is what a mainland licence buys and it is the only thing that buys it. Selling into the UAE from a free zone means a distributor's margin on every transaction, or a branch paying twice.
Compare the two routesOr just ask usThe usual answer, and the one worth a proper conversation. There is normally a sequencing that works — free zone first, mainland branch once domestic revenue justifies it — but it turns on your margins and your timeline.
Answer five questions insteadOr just ask us