All You Need To Know About Free Zones In Dubai
If you’re starting a business in Dubai or are planning to expand, you’ll no doubt have heard about free zones. They are special areas where businesses can establish themselves without needing to pay taxes. There are lots of benefits to setting up shop in a free zone, and many first-time entrepreneurs wonder if it’s right for them. There are several free zones operating in Dubai. Here is everything you need to know about Free Zones in Dubai.
What Taxes Are Businesses Exempt From?
As a business operating in a free zone, you won’t have to pay any corporate taxes, but those aren’t the only taxes your business will be exempt from. The other taxes you won’t need to pay when operating in the free zone are VAT (Value Added Tax), income tax, and customs taxes. What this means is that you benefit from cheaper start-up costs as you won’t need to factor in these taxes when calculating your costs. Furthermore, as you don’t need to remit these taxes to the government, you’ll have more liquidity in your business.
Difference Between Free Zones And Freehold Areas
Due to the similar name, many people often confuse free zones and freehold areas. However, these two types of areas couldn’t be more different. Free zones are areas where businesses can establish themselves without having to pay any taxes. You will also own 100% of your business. On the other hand, freehold areas are where you can own residential property if you are a non-GCC national. The advantage of freehold areas is that non-GCC nationals can purchase homes and set up businesses in free zones to boost trade in Dubai.
What Is The Purpose Of Tax-Free Zones In Dubai?
The main purpose of the tax-free zones is to attract businesses to Dubai. By setting up in these areas, businesses can avoid having to pay taxes, which can make them far more attractive to entrepreneurs who would otherwise have set up in other countries. This can make them easier to manage, which is a benefit for small businesses. Additionally, a boost in businesses operating in Dubai also attracts investors, which further boosts the economy in the area.
Top Free Zones To Consider
There are several free zones operating in Dubai, each with its own benefits. If you’re unsure which one to choose, you can consider a few of the most popular and choose the right free zone in Dubai for your business.
- Dubai CommerCity Free Zone
- Dubai Internet City
- Dubai Media City
- Dubai International Academic City
- Dubai Production City
Conclusion
Free zones are special areas where businesses can establish themselves without having to pay any taxes. There are several free zones operating in Dubai. They are intended to attract businesses to the city, as well as make it easier to run a small business. They can save you money on start-up costs, as you won’t need to factor in property taxes. In Dubai, there are several free zones operating that businesses can set up in. These include Dubai CommerCity Free Zone, Dubai Internet City, Dubai Media City, Dubai International Academic City, Dubai Production City, and many more. The main purpose of free zones is to encourage growth and development.