Moving to Dubai from France
French exit tax, the France-UAE tax treaty and French inheritance tax rules for entrepreneurs and families relocating to Dubai.
French founders, executives and investors are among the fastest-growing communities in Dubai. France has a tax treaty with the UAE, but it also has an exit tax and wide inheritance tax rules, so the move needs careful timing.
At a glance
- Tax treaty: France and the UAE have a double tax agreement, including tie-breaker rules for residence.
- Exit tax: applies if you were French tax resident for at least 6 of the last 10 years and hold shares worth at least €800,000, or at least 50% of a company's profits.
- Payment: exit tax can often be deferred, subject to conditions.
- Inheritance and gifts: heirs who have been French resident for at least 6 of the last 10 years can be taxed in France on what they receive, wherever the donor lives.
Leaving France
French law treats you as resident if your home or main place of stay, your main professional activity or the centre of your economic interests remains in France. Family left behind in France, or a French business you still run day to day, can keep you resident. Under the treaty, the tie-breaker looks at your permanent home and the centre of your vital interests.
Shareholders and the exit tax
The exit tax is calculated on the unrealised gain on your shares on the day before departure. Owners of valuable companies should value their holdings and look at restructuring options well before the move.
Family wealth
Because French inheritance tax can apply through the heirs, a move by the parents alone does not take the family's wealth outside French tax if the children stay in France. Estate planning should be done as a family.
How Imperial Group helps
- A review of your residence position before you move, so you know when your home-country tax exposure actually ends
- The right UAE structure for your business: free zone, mainland or a holding company, with real substance
- Company setup, visas, Emirates ID and bank account opening support
- UAE tax residency certificate, corporate tax and VAT registrations from day one
- Ongoing accounting, tax filings and a single point of contact for everything in the UAE
Sources
This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.
Talk it through with us
Tell us where you are and what you are planning. You will hear back from the team who will do the work, not a sales desk.