Is Dubai a tax haven ? What is a tax haven according to EU Law?

In EU law, the concept of a "tax haven" is not formally defined but generally refers to states or territories that apply very low or non-existent taxation, lack transparency in their financial systems, and do not sufficiently cooperate with other countries in exchanging tax information.

However, the EU has established a list of Non-Cooperative Jurisdictions (NCJs), focusing more on the lack of international cooperation. These criteria are defined by EU standards and primarily consider three factors:

1. The absence of a tax information exchange agreement with EU countries.

2. The lack of effective exchange of such information.

3. Tax regimes that facilitate opaque transactions.

1. The list of non-cooperative jurisdictions (NCJs)

Each year, the EU publishes an official list of NCJs. In 2025, this list includes the following countries:

• Anguilla

• Bahamas

• Fiji

• Guam

• US Virgin Islands

• Panama

• Samoa

• Trinidad and Tobago

• Vanuatu

These countries are considered as failing to meet international standards for tax cooperation.

2. Difference between a tax haven and an NCJ

The concept of a tax haven is broader and more subjective. It includes jurisdictions offering extreme tax benefits without necessarily lacking international cooperation. NCJs, on the other hand, are specifically identified as jurisdictions with a deficit in tax cooperation.

Thus, a country can be considered tax-friendly without being an NCJ. This is the case for Dubai, which has modernized its tax system while aligning itself with international transparency standards.

3. Dubai's evolution: from ambiguity to a model of transparency

Dubai, and more broadly the United Arab Emirates (UAE), have long been perceived as a tax haven due to their highly favorable tax policies:

• No personal income tax.

• Corporate tax rate reduced to 9% on profits exceeding a certain threshold (375,000 AED).

• Free zones offering full exemption from corporate taxes.

However, the UAE is not listed as an NCJ by the EU. This is due to several significant developments:

1. Signing International Tax Agreements: Dubai has signed numerous agreements on tax information exchange, including with EU countries.

2. Implementation of OECD Standards: The UAE complies with international standards for automatic information exchange, particularly under the Common Reporting Standard (CRS).

3. Introduction of Corporate Tax: Since 2023, the UAE has implemented corporate taxation, strengthening its alignment with international tax regimes.

3. Why choose Dubai without concern?

If you are considering relocating to Dubai, it is important to note that the EU does not classify this jurisdiction as a tax haven or an NCJ. Therefore, there are no punitive measures, such as additional taxes or fiscal restrictions, for businesses or individuals with ties to Dubai.

Moreover, Dubai offers unique tax advantages, including very low corporate tax rates and no personal income tax, while adhering to international standards. This makes it an ideal destination for entrepreneurs and investors seeking a competitive and secure tax environment.

4. How Meyran Partners can assist you

At Meyran Partners, we understand the challenges associated with relocating to Dubai and the related tax considerations. Our team of experts can help you:

• Develop a clear and compliant tax strategy in line with international regulations.

• Structure your business to take advantage of Dubai's tax benefits while avoiding any risk of disputes with EU authorities.

• Support you with administrative and legal processes for your relocation.

Contact us today to discuss your projects and find tailored solutions to meet your needs!