FZ Company formation in UAE/Dubai

[Semso]

Hey, from germany here. Looking to move to a country to cash out crypto and continue operating as B2C software selling. Not rich/wealthy by any means but also not poor.
Preferably abondend my residency in germany and stay for min of 1-2 years in the UAE.

Company question:
I saw a wide range of figures on what that would cost. From 5-10k. Obviously I dont want to be stuck half way through so going with a quality service seems to be the best option.
Saw that @Fred offers a service that looks quality, maybe you can answer.

• What would be the total round about cost of company formation + visa + bank and everything that might be required to live and cash out crypto inc. gov fees and service fees?
• What would be the round about cost of renewing the license+fees and everything that might also be required. I saw that the license needs to be renewed after a year.

Moving question (offtopic) if anyone wants or can answer

• What is the estimated cost of living? Saw that a apartments start at 4K a year. A decent one for 8-12K a year in Sharjah. Apartment side costs 1-3K a year. Health care 1-2K. Eating 3-5K? year.

I appreciate every response, thank you

 

[clemens]

You better contact @Fred or @Gediminas directly, that will provide you with the most accurate answer.

 

[JimBeam]

Will your company have anything to do with caching out crypto or you need company just for visa and you'll cash out directly to your personal account?

 

[Semso]

Will your company have anything to do with caching out crypto or you need company just for visa and you'll cash out directly to your personal account?

Depends what is better. Got some funds to cash out (thats the whole point to move to Dubai, as with all the cost its still cheaper than to pay out in germany) and probably more income when im in Dubai.

 

[JimBeam]

Depends what is better. Got some funds to cash out (thats the whole point to move to Dubai, as with all the cost its still cheaper than to pay out in germany) and probably more income when im in Dubai.

What's the rough amount we're talking about?

 

[myhand]

Depending on the amount you want to cash out there may be options for you that are cheaper but all depends on your setup.

 

[JustAnotherNomad]

Freezones are mostly dead now, depending on how much money you make. B2C is generally taxable at 9%, but it depends on how much money you make. You may be able to earn up to ~300k per year tax free. Maybe up to ~800k for the next 3 years.
I would strongly consider other options also before deciding on this, especially considering that there is no tax treaty.

 

[Adlawyer]

Usually, banks do not like B2C clients. The compliance for a corporate account in Dubai is quite complicated and you have to confirm your financial well-being by providing corresponding documents (agreements, invoices, bank statements, etc.).
Also, banks in Dubai will not allow working with crypto aspects. It would be best if you use exchanges to convert your usdt to fiat towards your corporate bank account (it is still working).
So, from my viewpoint, it will be more helpful to incorporate a company in the UK (LP) or Canada (LP), where there is no tax applied if you do not work in these markets. And open EMI account for the company.

 

[Semso]

What's the rough amount we're talking about?

Depending on the amount you want to cash out there may be options for you that are cheaper but all depends on your setup.

Middle 6 figures cashout, 50K per year income. As said cashout would be crypto. Income would be through Stripe & crypto.
Cyprus would be another alternative. But for 200K for example that would be 25K in taxes alone + accounting + whatever it costs to live there, prob 15K. FZ probably 10K Setup and 15K living. And no VAT exception for the EU market.
Im not against taxes just dont want to get ripped off. Im fine with moving to any country, basic lifestlye.

 

[JimBeam]

FZ probably 10K Setup and 15K living.

15k living in Dubai


Ok let me brake this down for you a bit.
Decent 1br apartment in Dubai currently rents at 80k AED/year or about €20k/year.

That doesn't include bills:
- internet - €50-€100/month
- utilities - about €100/month (water and electricity, garbage collection)
- cooling - €50-250 (depending on the month, how long are you in the house, sun orientation, isolation etc)
- gas - €5-10/month (used for cooking in most apartments)
- cell phone - €20-50/month

On top of that add private healthcare insurance policy, car rental (or maintenance of your own car), gas (cheap but it adds up to €100/month easily), road tolls (Salik), parking.
Groceries are also expensive (compared to Germany) as most of the things are imported. You can check prices at carrefouruae.com.

So, in my point of view, moving to Dubai to cash out €50k/year is not worth it.
IMO it only makes sense to move to Dubai if you make more than €200k to €250k/year net!

What you can do is book a cheap flight with a low cost company (WizzAir, FlyDubai), fly there, spend a week, go to OTC desk covert crypto to cash and bring it back to Germany.
Make sure you don't carry more than limit €10k/person. So with two vacations with your gf/wife/friend you could bring €40k/year back to Germany in cash.
As Germans love cash you'll have no hard time spending. Just don't buy anything flashy (like a Rolex or a new car) that will attract attention and you should be fine.

 

[Semso]

@JimBeam

Thank you for the reply & listing the costs. Didnt really think about them, appreciate it. I should have pointed out that I dont really want to live in Dubai but rather in sharjah or a similar Emirate where things are cheaper. I checked some furtinated apartments and they are like 30-40K/AED a year for a 1BR. As said I do have 300-400k€ but I live like someone on minimum wage, at least for now. Health care is around 1K-3K€ for me (more likely lower end) in the UAE. I paid nearly 10K alone for that last year in germany without being at the doc once for something important. Probably wont need a car, if I go out I will probably take the bus or a taxi/uber.

My plan is to move to the UAE, form a company there, cash out the stack I have (the sum mentioned above) + what I earn and then move on to turkey or cyprus (preferably turkey). Even if it doesnt make a lot of sense, I no longer what something to do with germany, thats also a thing to consider. + Got to live in a new country and society, also interesting.

 

[JimBeam]

I dont really want to live in Dubai but rather in sharjah or a similar Emirate where things are cheaper. I checked some furtinated apartments and they are like 30-40K/AED a year for a 1BR

That's better as you'll save some money as things are definitely cheaper thee - but also the quality of the buildings and lifestyle is also lower.
If you like beaches you might want to check RAK, and if you want to be near the Dubai but still in a fairly nice area checkout Al Majaz waterfront area in Sarjah.

Health care is around 1K-3K€ for me (more likely lower end) in the UAE. I paid nearly 10K alone for that last year in germany without being at the doc once for something important. Probably wont need a car, if I go out I will probably take the bus or a taxi/uber.

If you form a FZ and you get employed by your company you'll have to get a mandatory health insurance.
It covers just about nothing - but you got something (it typically cost around 1k AED/year).

My plan is to move to the UAE, form a company there, cash out the stack I have (the sum mentioned above) + what I earn and then move on to turkey or cyprus (preferably turkey).

You can also move to Northern Cyprus as that's a mix of Cyprus and Turkey

I no longer what something to do with germany, thats also a thing to consider.

I kind of understand your point.

Got to live in a new country and society, also interesting.

UAE especially Dubai is addictive. You have been warned!

 

[Asmodeus]

Go to thailand, georgia and cashout with a US LLC.
Dubai is more worth with high 6 figures or better 7 figures.

 

[NgonBoRe]

Another option, go to Cambodia to open a bank account ( ABA bank) , take a debit card to use online or offline, also use online banking to send money anywhere via SWIFT.

Do not forget buy a Metfone sim and active roaming services before you leave.

You can Sell any amount of crypto to USD slowly .