{"id":1292,"date":"2025-07-20T00:00:55","date_gmt":"2025-07-20T00:00:55","guid":{"rendered":"https:\/\/urbanthier.de\/?p=1292"},"modified":"2026-05-24T11:40:35","modified_gmt":"2026-05-24T11:40:35","slug":"moving-to-dubai-what-you-absolutely-must-consider-tax-wise","status":"publish","type":"post","link":"https:\/\/urbanthier.de\/en\/umzug-nach-dubai-was-sie-steuerlich-unbedingt-beachten-sollten\/","title":{"rendered":"Moving to Dubai: What You Absolutely Need to Consider Tax-Wise"},"content":{"rendered":"
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Moving to Dubai: What You Absolutely Need to Consider Tax-Wise<\/h1><\/div><\/div>\n\n
\"Modern<\/span>\n

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Life without income tax? Moving to Dubai has tax pitfalls<\/h3><\/div><\/div>\n\n

Dubai is considered a hotspot for entrepreneurs, investors, and private individuals looking for a tax-advantageous place of residence. However, anyone relocating their residence from Germany to the United Arab Emirates should prepare the move carefully \u2013 primarily from a tax perspective. Because although Dubai itself does not levy income tax, the German tax authorities can still have a say. This article explains the most common tax pitfalls and what you need to consider when moving away.<\/p>\n

Urban Thier & Federer (UTF)<\/strong>\u00a0has its own representation in Dubai, operated by the US partner law firm UTF PA. The firm brings years of experience in transnational and international business law and supports clients worldwide with cross-border tax and structuring issues. Thanks to this international orientation, UTF is excellently positioned to provide comprehensive support to German clients relocating to Dubai \u2013 both legally and tax-wise, in cooperation with external tax advisors.<\/p>\n<\/div><\/div>\n\n

1. Am I still subject to taxation in Germany?<\/h3><\/div><\/div>\n\n

That depends on whether you are still considered \u201cunlimitedly taxable\u201d under German tax law. This is the case if you are in Germany\u00a0a place of residence (\u00a7 8 AO)<\/strong>\u00a0or\u00a0Their usual residence (\u00a7 9 AO)<\/strong>\u00a0have.<\/p>\n

a) When is there a tax residency?<\/strong><\/p>\n

You have a tax residence if you could use a dwelling in Germany \u2013 even if it's only occasionally. A guest room at relatives' can be sufficient. It's not the registration with the residents' registration office that counts, but whether you\u00a0actually have housing<\/strong>, which is intended for the long term.<\/p>\n

b) Ordinary residence: more than just a visit<\/strong><\/p>\n

If you stay in Germany for more than six months (even with short interruptions), this is considered \u201cordinary residence,\u201d with the consequence that you remain fully liable for taxes.<\/p>\n

c) Spouse or children remain in Germany?<\/strong><\/p>\n

If a spouse or children continue to live in Germany, this can be considered an indication that you have retained your tax residence. Again, document thoroughly and consult with a tax advisor.<\/p>\n

d) What applies in the year of the move?<\/strong><\/p>\n

If you move mid-year, you are\u00a0fully liable for tax until the date of departure<\/strong>\u00a0\u2013 and possibly subject to limited tax liability thereafter. Your income after moving away must still be partially declared on your tax return (\u00a7 2 para. 7 German Income Tax Act).<\/p>\n<\/div><\/div>\n\n

2. Tax liability after moving \u2013 despite residence in Dubai?<\/h3><\/div><\/div>\n\n

What many don't know:\u00a0Even after moving away, Germany can still tax certain income for up to ten years.<\/strong>\u00a0\u2013 under the heading \u201eextended unlimited tax liability\u201c (\u00a7 2 AStG).<\/p>\n

This applies if you:<\/p>\n