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Where do I pay taxes in the following situation?

bogdy23

Active Member
May 6, 2017
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Hello,

So I want to move to Dubai from October 2025 up until April 2026. I`m from Romania. I know you pay taxes where you have lived for the past 6 months. So in my situation the one I`ve described will I be paying my taxes in Romania or in Dubai? I`m asking because there are 2 different years, the end of 2025 and the beginning of 2026
Thank you
 
I’ve dealt with a somewhat similar setup, where my personal residency, business registration, and clients were spread across different countries, and I can tell you, tax residency doesn’t always follow the logic you expect.

From what you described, it sounds like you’re personally living in Country A, have a company in Country B, and serve clients in Country C. The key question most tax authorities will ask is: where is the "place of effective management" of your company? In other words, where are key decisions made? If that’s from your laptop in Country A, many tax offices would argue the company has a taxable presence there, even if it’s legally incorporated elsewhere.

Also worth checking whether Country A has CFC (Controlled Foreign Corporation) rules, these can pull in foreign income from entities you control if you reside there and meet ownership thresholds. Even if the company never pays you a salary or dividend, some countries tax you on undistributed profits.

There’s definitely no one size fits all answer here, and treaties between countries can shift things further. I ended up doing a session with a cross-border tax advisor who gave me a much clearer picture of the risks depending on how “visible” the income flows were.

Would be curious to hear if anyone here has structured something similar and how they kept things clean from a reporting standpoint.
 
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This sounds more like a long holiday
I want to live on the sun on the beach. So, yeah, from the end of August to the beginning of September, up until next year, to April and May,

I would choose Dubai because it`s warm and sunny. And then, in the summer in Romania, I meet up with my family and friends, and then go back.

Since I`m spending more time in Dubai than in Romania, I thought I could pay 0 taxes in Dubai. But from what I`m getting here for the people (WHICH I THANK YOU VERY MUCH), those who have answered me here say that, that is simply not the case.
 
Hello,

So I want to move to Dubai from October 2025 up until April 2026. I`m from Romania. I know you pay taxes where you have lived for the past 6 months. So in my situation the one I`ve described will I be paying my taxes in Romania or in Dubai? I`m asking because there are 2 different years, the end of 2025 and the beginning of 2026
Thank you

Days spent in UAE in 2025: around 90 (October + November + December).
Days spent in Romania in 2025: around 275 (the other nine months).

2025: you pay taxes in Romania.

Days spent in UAE in 2026: around 120 (January + February + March + April).
Days spent in Romania in 2026: 245 (the other eight months).

2026: you pay taxes in Romania.

Furthermore, even if you spend 183+ days in UAE but maintain your vital or primary economic interests in Romania, you may still be considered tax resident in Romania. Examples of economic interest include property ownership, ownership/directorship in local companies, significant savings in Romania or RON, and so on.
 
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If you want to avoid to pay taxes in Romania (I thought they were low honestly), go to Dubai, get a freelance visa, house for rent, and process all papers. Also try to spend less that 180 days in Romania. Doesn't mean you need to be 184 days only in Dubai, you can travel around, as long as you don't spend more than half year in Romania.
 
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If you want to avoid to pay taxes in Romania (I thought they were low honestly), go to Dubai, get a freelance visa, house for rent, and process all papers. Also try to spend less that 180 days in Romania. Doesn't mean you need to be 184 days only in Dubai, you can travel around, as long as you don't spend more than half year in Romania.

What if someone gets the necessary visa for Dubai, sets up their operation there (brokerage, bank accounts, emirates ID, rental agreement or home purchase) and declares residency in Dubai for 0% tax but spends 180+ days in their home country? Assuming you don't do any significant purchases, no transfers from Dubai, no card purchases in your home country, etc.
 
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Days spent in UAE in 2025: around 90 (October + November + December).
Days spent in Romania in 2025: around 275 (the other nine months).

2025: you pay taxes in Romania.

Days spent in UAE in 2026: around 120 (January + February + March + April).
Days spent in Romania in 2026: 245 (the other eight months).

2026: you pay taxes in Romania.

Furthermore, even if you spend 183+ days in UAE but maintain your vital or primary economic interests in Romania, you may still be considered tax resident in Romania. Examples of economic interest include property ownership, ownership/directorship in local companies, significant savings in Romania or RON, and so on.
You got it backwards. It`s about 90 days in Romania and January to April or May in Dubai, and September to December in Dubai. Ok, so this year I`m spending more days in Romania than in Dubai,

But next year I want to be January to April, or May (4-5 months in Dubai), then May-August (3-4 months in Romania), then from September to December (2026 also in Dubai). So I`m spending about 7-8 months a year in Dubai in 2026.

If I spend that time in Dubai and also maybe travel around Europe ( both from Dubai and Romania) Do I in 2026 still pay my taxes in Romania or Dubai. There is a 3-4 month break to Romania in 2026.

Maybe now the situation has changed, maybe I have now explained it better, so it will be 7-8-9 months in Dubai in 2026, but it will be interrupted in the middle?

So, DO I STILL PAY IN ROMANIA or DUBAI?
Thank you
 
You got it backwards.
Just want to make sure I understand the timeline correctly.

In your first post, you wrote:
So I want to move to Dubai from October 2025 up until April 2026. I`m from Romania.
Based on this, I assumed that you would have lived in Romania from January 2025 to October 2025. That would mean roughly 275 days in Romania, followed by 90 days in UAE for the year of 2025. (Plus minus 30 or so days depending on when in September/October you leave.)

However:
But next year I want to be January to April, or May (4-5 months in Dubai), then May-August (3-4 months in Romania), then from September to December (2026 also in Dubai). So I`m spending about 7-8 months a year in Dubai in 2026.
In this case, you would not meet the criterion for being tax resident in Romania based on number of days spent in Romania. However, Romania looks at more criteria than that.

You may still be tax resident in Romania if you have strong ties to Romania, for example if you own property in Romania (especially if it's vacant and available for use by you), your children go to school in Romania, your SO/partner lives in Romania, you derive income from a Romanian company, or if do not spend more time in any other country than you do in Romania.

So, DO I STILL PAY IN ROMANIA or DUBAI?
Based on these additional details, you are very likely tax resident in Romania for the year of 2025. However, for the year of 2026, it gets more complicated now. If you do not have strong ties to Romania and visit just as a tourist, it's likely that you would not be tax resident of Romania anymore and be liable for tax only in UAE.

It's possible that you're still tax resident in Romania for some part of 2026, though. It depends on how exactly Romania defines it. However, it's very rare for countries to actually pursue people who have left the country for partial tax residence like that (unless there are aggravating circumstances).

In any case, it would be best to speak with a Romanian tax advisor about this.
 
Just want to make sure I understand the timeline correctly.

In your first post, you wrote:

Based on this, I assumed that you would have lived in Romania from January 2025 to October 2025. That would mean roughly 275 days in Romania, followed by 90 days in UAE for the year of 2025. (Plus minus 30 or so days depending on when in September/October you leave.)

However:

In this case, you would not meet the criterion for being tax resident in Romania based on number of days spent in Romania. However, Romania looks at more criteria than that.

You may still be tax resident in Romania if you have strong ties to Romania, for example if you own property in Romania (especially if it's vacant and available for use by you), your children go to school in Romania, your SO/partner lives in Romania, you derive income from a Romanian company, or if do not spend more time in any other country than you do in Romania.


Based on these additional details, you are very likely tax resident in Romania for the year of 2025. However, for the year of 2026, it gets more complicated now. If you do not have strong ties to Romania and visit just as a tourist, it's likely that you would not be tax resident of Romania anymore and be liable for tax only in UAE.

It's possible that you're still tax resident in Romania for some part of 2026, though. It depends on how exactly Romania defines it. However, it's very rare for countries to actually pursue people who have left the country for partial tax residence like that (unless there are aggravating circumstances).

In any case, it would be best to speak with a Romanian tax advisor about this.
My business is e-commerce I run it from my laptop. I can and want to set up a company in the UAE. If I create the company there, if I own a home in the UAE and spend time in Romania and the UAE, as I`ve told you. Will I be able to become a tax resident in the UAE or still in Romania?

I`ve bought my parents a home it`s on their name I just send them a little money and I will only own a car and house in the UAE nothing in Romania except my parents house where they live now?

Will that solve the problem? Or I`m still not in the clear?