The Relocation Checklist: 12 Key Steps for a Tax-Compliant Move to Dubai
Relocating to Dubai can offer major financial and lifestyle benefits, but only when the move is structured correctly from a tax and legal perspective. The following 12 steps outline what Germans should review to make the transition as smooth and compliant as possible.
1. Speak to a Dubai-focused tax advisor early
Ideally, you should begin planning 6 to 12 months before your departure. Getting expert advice early can help you avoid expensive mistakes and identify the best strategy for your situation.
2. Review whether exit tax applies to you (§ 6 AStG)
Check whether Germany’s exit tax rules are relevant in your case, estimate the potential amount, and assess possible structuring options to reduce or avoid the burden where legally possible.
3. Give up your residence in Germany completely
If you want to break German tax residency cleanly, your residence in Germany must be fully relinquished. That means ending the lease or handing over your home and ensuring you no longer have access to it in practice.
4. Complete your deregistration in Germany
Deregistering with the residents’ registration office is an important formal step, but it does not prove everything on its own. You should also keep evidence of the broader steps taken to leave Germany permanently.
5. Create real residency in Dubai
You need to establish genuine ties in the UAE, for example through a rental contract or property ownership, and secure a valid UAE residence visa through the appropriate route.
6. Move your center of life to Dubai in a visible way
Your relocation should be reflected in your everyday life. This includes opening a local bank account, ending memberships and service relationships in Germany, and building a real personal and practical base in Dubai.
7. Watch the 183-day rule carefully
Limit your physical presence in Germany to no more than 183 days per calendar year. Keep strong documentation of your travel, such as tickets, hotel invoices, and a clear travel log.
8. Check for extended limited tax liability (§ 2 AStG)
Even after leaving Germany, substantial economic links may still trigger tax consequences. Review whether you retain relevant interests and whether they should be reduced before the move.
9. Clarify how German real estate will be taxed
Property in Germany remains a tax-relevant issue after emigration. Rental income is generally still taxable there, so you should assess whether holding or selling the property makes more sense.
10. Build real business substance in Dubai
If you are relocating as an entrepreneur, your Dubai company should not exist only on paper. Office space, staff, and real management activity in Dubai are essential to reduce tax risks such as CFC exposure.
11. Understand UAE Corporate Tax rules
Dubai is tax-friendly, but not tax-free in every respect. Companies with profits above AED 375,000 may be subject to 9% corporate tax, so registration and compliance should be reviewed in advance.
12. Prepare your final German tax return correctly
The year in which you emigrate is often particularly complex from a tax perspective, because split tax liability may apply. Your final German return should therefore be prepared carefully, ideally with specialist support.
A move to Dubai is not just a change of address — it is a major tax, legal, and financial transition. Taking these steps in the right order can help you avoid unnecessary risks and create a solid foundation for your new life in the UAE. With the right preparation and professional guidance, the move can be both compliant and strategically beneficial.
