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Setting up Limited company in DUBAI or Emirates

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    Setting up Limited company in DUBAI or Emirates

    I' ve got a new gig in Barcelona through UK agency.
    I want to setup a Limited Company in Dubai or Emirates, and use it for invoicing my UK client.

    I would like to know about what taxes/others I will need to pay in the following cases:

    -Digital Nomad (I am not resident in any country since I have not been more than 6 months)
    -Resident in the UK
    -Resident outside UK

    Others are (Corporate tax, dividend tax, social security, etc...)

    I've been told that if you are tax resident in a EU country, Dubai corporate tax (0%) does not apply, and you will need to pay whatever corp tax of your residence country, am I right?

    #2
    Agency won't do business with a non UK Ltd surely? You need to ask them first before investing any more time in to this.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      Agency won't do business with a non UK Ltd surely? You need to ask them first before investing any more time in to this.
      Indeed.
      I've not seen a single agency that will pay anything other than a UK Ltd.
      Even the Isle of Man slimeballs use a UK Ltd. for the initial transaction.

      If the OP really wants to pursue this line of tax evoidance I suggest looking at Portugal. At least Portugal is in the EU so at the moment there are protections and less limited barriers to trade, as well as potentially reduced tax.
      See You Next Tuesday

      Comment


        #4
        I asked other agencies in the past, and most of them are OK since the role is going to be performed outside the UK. One agency told me they can't take the risk of paying to EU LTD IF the role is inside the UK, but some days later they offered me a way to get paid through a third company, so the agency pay to that third company and the third company to my LTD.

        I don't understand why an UK agency won't accept to pay to EU companies, many UK contractors use their own UK LTD to invoice EU agencies no matter if the role is developed in the same country as the agency. I understand there are exceptions like pay-rolled countries like Amsterdam, Switzerland etc but the rule in EU is that any EU company can invoice any EU company, am I right?

        I was also thinking about Lithuania, in fact, for my future role the agency will accept Lithuania or any company in the EU.

        I will ask them if they accept Dubai LTD.

        If they accept Lithuanian LTD then where do I pay corporation tax? in Lithuania / UK / or Spain (remember the role is in Spain)?

        Comment


          #5
          Originally posted by bul View Post

          If they accept Lithuanian LTD then where do I pay corporation tax? in Lithuania / UK / or Spain (remember the role is in Spain)?
          Again... I would look at the art of the possible first. Nearly every question we have about foreign tax never seems to get a satisfactory response. It's just not the core work for us or the accountants we use and pretty complex.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Too many variables, too many possibilities, and too much vaguery.

            Where physically will you be doing the work?
            Have you asked the agent who is offering you the role (not”have you spoken to someone who knows someone who’s friend once asked a guy at a bar who claimed to be an agent”)?
            Have you started working for the end client yet?
            Have you worked out the costs of the currency exchanges and of your company and personal accounting?
            How long have you been contracting, and how have you run your accounts previously?
            Is there anything you might be deliberately hiding from us that would affect the advice given?
            …Maybe we ain’t that young anymore

            Comment


              #7
              Originally posted by WTFH View Post
              Too many variables, too many possibilities, and too much vaguery.

              Where physically will you be doing the work?
              Have you asked the agent who is offering you the role (not”have you spoken to someone who knows someone who’s friend once asked a guy at a bar who claimed to be an agent”)?
              Have you started working for the end client yet?
              Have you worked out the costs of the currency exchanges and of your company and personal accounting?
              How long have you been contracting, and how have you run your accounts previously?
              Is there anything you might be deliberately hiding from us that would affect the advice given?
              To be fair even if he answered all these questions we just don't know anything about the tax regimes he is talking about so still won't get any closer to an answer.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by northernladuk View Post
                To be fair even if he answered all these questions we just don't know anything about the tax regimes he is talking about so still won't get any closer to an answer.
                I agree to a point, but at least if he answered these it might be a pointer as to what he needs to do next.
                …Maybe we ain’t that young anymore

                Comment


                  #9
                  Originally posted by WTFH View Post
                  I agree to a point, but at least if he answered these it might be a pointer as to what he needs to do next.
                  Very true.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by bul View Post
                    I' ve got a new gig in Barcelona through UK agency.
                    I want to setup a Limited Company in Dubai or Emirates, and use it for invoicing my UK client.

                    I would like to know about what taxes/others I will need to pay in the following cases:

                    -Digital Nomad (I am not resident in any country since I have not been more than 6 months)
                    -Resident in the UK
                    -Resident outside UK

                    Others are (Corporate tax, dividend tax, social security, etc...)

                    I've been told that if you are tax resident in a EU country, Dubai corporate tax (0%) does not apply, and you will need to pay whatever corp tax of your residence country, am I right?

                    Not sure if relevant to your scenario but maybe a few pointers :
                    Contractor’s guide to contracting in Dubai

                    Comment

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