In case there are several houses owned in Hungary, and there's a few apartments in Germany within a complex of 600 units that are leased to a hotel operator for 20 years, could it be a problem to relocate to Dubai in terms of tax from the perspective of the owner?
Current understanding that it's not an issue, because the German apartments do not constitute residency due to contractually being managed by the operator, so Germany should only tax German source income. The fact that there is an investment bank mortgage on the German apartment should not matter.
Similarly, for Hungary, there is tax residency, but since there is a double tax treaty with UAE, Dubai income should be exempt. This case also applies to UK, which exempts Dubai income.
Unfortunately, for Germany, the double tax treaty includes Dubai income, but since there is no residency in Germany, this is irrelevant.
Having bank accounts, family ties, insurance contracts or any other substance in the above countries, apart from rental tenancy agreement, would also not matter in terms of tax. Hence, centre of vital interest is irrelevant. Citizenship is likewise irrelevant, unless American.
Dubai tax residency can be established after 183 days of stay and by obtaining residency visa or starting a company there. At this point all dividends and directors salary income would only be taxed in Dubai.
Is this assessment correct or is there anything missing?
Current understanding that it's not an issue, because the German apartments do not constitute residency due to contractually being managed by the operator, so Germany should only tax German source income. The fact that there is an investment bank mortgage on the German apartment should not matter.
Similarly, for Hungary, there is tax residency, but since there is a double tax treaty with UAE, Dubai income should be exempt. This case also applies to UK, which exempts Dubai income.
Unfortunately, for Germany, the double tax treaty includes Dubai income, but since there is no residency in Germany, this is irrelevant.
Having bank accounts, family ties, insurance contracts or any other substance in the above countries, apart from rental tenancy agreement, would also not matter in terms of tax. Hence, centre of vital interest is irrelevant. Citizenship is likewise irrelevant, unless American.
Dubai tax residency can be established after 183 days of stay and by obtaining residency visa or starting a company there. At this point all dividends and directors salary income would only be taxed in Dubai.
Is this assessment correct or is there anything missing?
.
