UAE as base of operations?

[glengoolie]

I am starting to like the idea of UAE as base of operations. Not only is real estate cheap AF(I know they have zones and some restrictions for foreigners) but it is a precursor for the resident visa and hence tax residence without the need to setup a company. With the generous once a 6 months required visit and no taxes, with the best international airport(s), widely spoken english, this is heaven...in winter time with nice 25C.

So I am thinking about making this my residence where I would spend the winter months and the rest of the year, without much time constraint, I could be elsewhere, away from the summer heat in a better climate.

So I wonder what downsides could there be awaiting for me? I am from EUrope so I should have no problems to get there. I trade stocks and my own country along with the country of my bank and broker have DTA with UAE so no tax issues there, I hope.

I know UAE is talked about often for obvious reasons, so what are the downsides one might not know about right away? Just to make it clear, I am not looking for tax avoidance, I will happily pay no or little tax and have clean slate. As stock trader, would I have a self-employment requirement? How about the usual healthcare and social security crap?

I also am ok with stricter culture there, I am no fan of the west liberalism.

I plan to visit next year so I am just researching various opportunities and this one is on my list.

 

[Konstanz]

Hi,
I am not sure if 1 visit per 6 months would be enough to change your residence.
Were are you going to stay the other time?
If you remain in your home country, you will be still taxed in your home country. If you stay in other countries +180 days or have home, you could trigger their tax rules.

 

[glengoolie]

from what i have read, being physically present in the country twice a year should be enough to keep the tax residency(not to obtain). although that might have been residence visa not tax residence. anyway, small detail. i would not be elsewhere long enough to become tax resident elsewhere so that's fine. my main question was the negatives of UAE that one might not consider right away. so far i could see prices being an issue, although that depends on where you would live and shop. then of course the summers, which i would not spend there. geopolitics of the region are also a bit questionable.

 

[Konstanz]

from what i have read, being physically present in the country twice a year should be enough to keep the tax residency(not to obtain). although that might have been residence visa not tax residence. anyway, small detail. i would not be elsewhere long enough to become tax resident elsewhere so that's fine. my main question was the negatives of UAE that one might not consider right away. so far i could see prices being an issue, although that depends on where you would live and shop. then of course the summers, which i would not spend there. geopolitics of the region are also a bit questionable.

Yes, 2 days in theory should be enough. UAE will probably not challenge this , but your home country could chalange. They can say that in practice your residence is FAKE despite of double tax treaty etc.
If you stay just couple of days and tax inspector in your country would see that or you cannot prove you live normal life there, they could consider that this residence is tax fraud.

You pretty much covered all issues, but it all depends on your personal situation. I think UAE is most cost efficient way to be 0% tax resident.
All other options either are much more expensive (talking millions of investments in real estate etc.) or very remote locations (Caribbean islands etc).