Don’t Move to Dubai, Move Here Instead

Summary

In this video, the speaker compares the tax advantages and lifestyle of living in Dubai versus Dublin, highlighting the lesser-known benefits of Ireland. While Dubai offers a low tax environment with a 9% corporate tax, Ireland provides a unique non-dom tax program that could be more advantageous for entrepreneurs, especially with a path to citizenship and lower taxes on passive income. The speaker contrasts the cultural, geopolitical, and lifestyle differences, emphasizing Ireland's potential for those seeking a second passport and greater long-term tax scalability, offering a compelling alternative to the typical Dubai choice.

Takeaways

• 😀 Dubai is widely known for its low tax benefits, but there are other tax-friendly countries worth considering, such as Oman and Ireland.
• 😀 Ireland offers lower taxes than Dubai for entrepreneurs, especially with its non-dom program, allowing more flexibility in tax planning.
• 😀 Taxes in the UAE are about 9% for businesses, and Dubai's tax system is becoming more complicated with newer regulations.
• 😀 Ireland provides a path to citizenship, which is not available in the UAE unless investing tens of millions of dollars.
• 😀 Unlike Dubai, Ireland has a favorable tax regime for passive income like royalties and dividends, especially for US and European investors.
• 😀 Ireland's non-dom program allows foreign entrepreneurs to pay taxes only on the salary they take from their business, offering potential savings.
• 😀 Families may appreciate Ireland's sense of privacy and cultural atmosphere, with a less intrusive environment than many other European countries.
• 😀 Dubai's tax-friendly status is changing, with newer regulations and an incoming 9% business tax, making other tax-friendly countries more competitive.
• 😀 The UAE's lack of a US-UAE tax treaty makes it less favorable for US citizens receiving royalties or dividends compared to Ireland.
• 😀 Getting a second passport in Dubai usually requires significant financial investment, whereas Ireland offers an easier path to citizenship after living there for a few years.

Q & A

What is the main alternative to Dubai that is discussed in the video?

The main alternative discussed in the video is Ireland, particularly for those seeking lower taxes, an English-speaking environment, and a path to citizenship.

How do taxes in Dubai compare to those in Ireland for entrepreneurs?

In Dubai, entrepreneurs pay around 9% tax on business income, whereas in Ireland, entrepreneurs can benefit from a non-dom tax program, where they may only pay tax on their salary, which can be a much smaller amount compared to the total company income.

What is the non-dom program in Ireland?

The non-dom program in Ireland allows individuals to live in Ireland while having their business based elsewhere, and they only remit the salary they pay themselves, potentially lowering their overall tax burden.

What are the key tax advantages of living in Ireland compared to Dubai for investors?

Ireland offers tax advantages for investors, especially those with income from royalties or dividends. For example, US and European dividends may be taxed at a lower rate in Ireland due to tax treaties, whereas similar income in Dubai can be subject to higher taxes due to the lack of a US-UAE tax treaty.

What are the challenges of getting a second passport in Dubai?

Dubai generally does not offer a path to citizenship. While some individuals may receive citizenship through substantial investment, this is not the norm. In contrast, Ireland offers a clear path to citizenship after residing in the country for five years.

What is the climate difference between Dubai and Dublin?

Dubai experiences extremely hot summers with temperatures reaching 40°C, while Dublin has cooler weather, typically around 15-16°C during summer, offering a perpetual fall-like atmosphere.

What benefits does Ireland offer in terms of citizenship?

Ireland offers a path to citizenship after five years of residence, which can result in one of the best passports in the world, granting access to 31 countries in the European Union and the UK, unlike Dubai, where citizenship is not easily obtainable.

Why might some people prefer Ireland over Dubai despite higher personal taxes?

Some people may prefer Ireland over Dubai for the opportunity to gain citizenship, the cultural appeal, and the scalability of tax benefits, especially for high-income earners. Ireland’s lower tax rates on certain types of income, such as dividends and royalties, also play a role.

How does the cultural environment in Ireland differ from Dubai?

Ireland is described as having a rules-oriented, boundary-focused culture, with a strong emphasis on privacy. In contrast, Dubai, while also following rules, has a more open and welcoming atmosphere, especially within the Gulf region.

What is a potential drawback of living in Dubai in terms of tax structure?

A potential drawback of living in Dubai is the 9% tax on business income, which is unavoidable for those running a serious business. Additionally, there are restrictions on incorporating outside the UAE to avoid the tax, limiting flexibility compared to countries like Ireland.