The UAE has become the main exit destination for Russian-speaking business since 2022: a zero rate at the start, hundreds of free zones, banks without currency control. But since 2023 a corporate tax applies - and the "zero offshore" has become a myth. Here is how it really works.
Business taxes in the UAE
| Tax | Rate | Comment |
|---|---|---|
| Corporate Tax | 0% up to 375K AED (~102K USD) | 9% above; in force since 2023 |
| Free zone (qualifying income) | 0% | With conditions: real activity in the zone, adequate income |
| VAT | 5% | Above the registration threshold |
| Dividends | 0% | No dividend tax |
Compare in the tax calculator: on profits up to ~375K AED the UAE remain one of the cheapest options.
Mainland vs free zone
- Mainland - can work across all Emirates and take government contracts, but needs a local sponsor/agent.
- Free zone - 100% foreign ownership, fast registration (3-7 days), but a classic zone company works outside the zone only via a distributor or with VAT registration.
Popular zones: DMCC (Dubai trading), IFZA (budget), RAKEZ, ADGM (finance). The current classic is a "zone company + mainland license" pair.
Opening a company: step by step
- Choose zone and license activity - this drives visa quotas and banking appetite.
- Submit passports, photos, business plan - registration in 3-7 days.
- Get the license, Establishment Card, open the account.
- Emirates ID and founder visas - biometrics in the Emirates.
Turnkey cost: from $3,000-4,000 per year in budget zones to $10,000+ premium with an office.
Banks: the main filter
A license is half the job: without an account the company is dead. UAE banks (Emirates NBD, FAB, WIO) tightened compliance in 2025-2026 and are cautious with Russian-speaking owners. What works: a transparent business plan, proof of funds source, a personal visit. Fresh companies without history struggle; many start with WIO or zone banks.
Typical mistakes
- Buying a "zero offshore" zone setup without meeting qualification conditions - the FTA back-charges 9%.
- Registering "trading" while processing third-party payments - account and license blocked.
- Forgetting Economic Substance Regulations - zone companies need real economic activity in the UAE.
FAQ
Do I need to live in the UAE?
No, but a resident visa and Emirates ID ease banking and travel.
What about sanctioned payments?
UAE banks follow international sanctions: payments to Russia go via separate correspondent accounts with higher fees. Many use a Chinese or Kazakh bank link for Russian settlements.
What is the annual running cost?
License $3,000-8,000 + office/flex desk $2,000-6,000 + accounting $2,000-5,000 + visas. A realistic budget starts at $8,000-10,000 per year.