Until 2023 Dubai was the unrivalled destination for tax-optimised European entrepreneurs. The introduction of a 9% corporate tax plus the EU grey-list conversations have shifted the picture. For many of our clients Georgia is now the rational pick — not the exotic one.
What actually changed
Dubai used to be the “zero-tax story” for European solopreneurs. The argument was simple: Mainland LLC or Free Zone, 0% on company profits, no income tax.
Since June 2023:
- 9% corporate tax on profits above AED 375,000 (≈ €95,000) for mainland companies
- 15% minimum tax for groups above €750M revenue (OECD Pillar Two)
- Free Zones formally stay at 0% — but with stricter substance requirements
- Increased EU pressure on banks to scrutinise Dubai structures
Side-by-side
Dubai 2026
- Corporate tax: 9% above €95k profit
- Cost of living: ~ €4,500/month (1-person household)
- Rent: +35% since 2023
- Visa: 2-year investor visa from USD 100k
- Banking: Emirates NBD, ADCB. KYC increasingly strict for EU clients
- EU image: grey-list risk, EU home banks now flag Dubai structures
Who benefits from switching
Dubai was never the right choice for everyone — those who picked it on tax arithmetic alone learned in 2023/24 that the glamour cost-of-living ate the tax savings.
From the field
Switching from a DMCC Free Zone to Tbilisi paid back in 7 months — purely through lower rent. The tax savings are on top. The only downside: less spectacular Insta stories.
Verdict
The question is no longer “Dubai or Georgia” — it’s “how fast do you switch if your business model is purely digital”. Anyone forming a Dubai mainland LLC in 2026 for digital services aimed at German clients is paying 9% instead of 1% — at higher cost of living and shakier banking pipelines.
If you’re at a decision point right now: book a free structural analysis and we’ll run your concrete numbers.
Sources
Every legal statement in this article is backed by the primary source listed below.
- Tax Code of Georgia, Art. 88 and Art. 97 — Georgian original with version selector