Lawyer Monthly - March 2024

52 LAWYER MONTHLY MARCH 2024 - Settling fees and duties, including registration, agency, and transfer fees, typically ranging from 2% to 7% of the purchase price. What, if any, are the tax considerations for individuals looking to relocate to the UAE and/or structuring ownership of assets within the UAE and are there any possible implications for an individual or business from a non-UAE tax authority? Implementing a Comprehensive Relocation Strategy The UAE’s territorial tax system, centered on residency status, governs taxation for individuals, based on key factors like time spent in the UAE and economic ties. In relocation endeavours, there is often a narrow focus on arrival, neglecting expatriate tax status from the home country’s perspective. Certain home country tax authorities may challenge the departure or impose exit taxes, despite obtaining UAE tax residency. Before initiating any transition, we strongly recommend individuals thoroughly assess all ties to their home country, including property ownership, company shares, or executive roles which significantly influence tax transitions and global income. Business and Asset Ownership For individuals contemplating the establishment or investment in businesses or ownership of incomegenerating assets within the UAE, understanding the CT environment is essential. While UAE Free Zones provide attractive tax exemptions, meeting stringent criteria is crucial to benefit from these incentives. Outside Free Zones, a default CT rate of 9% is applicable when requirements relating to the entity, its

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