The speaker, a proud UAE Golden Visa holder, is closing his active business in the Emirates, challenging the widely marketed narrative of the UAE as a perpetual tax-free haven for all entrepreneurs. He asserts that the 0% tax era is definitively over, with a new 9% corporate tax now applicable to successful businesses. This invalidates previous assumptions and renders old "loopholes" largely ineffective for genuine enterprises. 📉
A core principle highlighted is the need to decouple personal residence from business location, advocating to "go where you're treated best." While living in the UAE might suit some, basing an international active business there for a non-resident individual (or someone not living there for 180+ days) presents significant challenges. The UAE's efforts to curb tax avoidance mean living there could still pull one into the local tax net, regardless of where the company is registered.
Crucially, UAE banking challenges are a major pain point. Banks often struggle to understand and accommodate non-resident business owners, making remote management arduous. The requirement for a physical presence through a residence visa or adhering to the 180-day rule for maintaining status conflicts directly with a truly global, nomadic lifestyle. Furthermore, the ecosystem for active businesses, particularly regarding payment processors and merchant accounts, is less developed compared to other jurisdictions, limiting options and increasing costs for services like currency conversion. Simple administrative tasks, like canceling a power of attorney, can be disproportionately expensive.
For active international businesses, the speaker suggests alternative jurisdictions such as Hong Kong (which still offers a dual-tier tax system with potential for 0% tax for certain businesses), the British Virgin Islands, Cayman Islands, or Malta. These locations often provide lower tax rates, more flexible banking, or better financial ecosystems (e.g., payment processors, brokerage accounts) for companies not strictly tied to a single physical presence.
However, the best use case for UAE companies remains strong as a holding company. Leveraging its robust and expanding network of tax treaties, the UAE is an excellent base for investing in public equities, or assets in Europe and particularly Africa. This provides asset protection and potential tax advantages on passive income or capital gains, especially if some substance is maintained.
The final verdict is clear: the speaker is closing his company because it no longer serves his specific active international business structure, as neither he nor his employees reside or work in the UAE. He warns against following outdated marketing hype or the herd mentality. Instead, entrepreneurs should build a bespoke structure based on compliance, customer location, and personal lifestyle goals. This approach ensures true optimization and long-term sustainability. 🗺️⚖️