Moving to Dubai from Norway

Norway's exit tax was tightened in recent years, and it now matters to many Norwegian business owners considering Dubai. There is no general tax treaty between Norway and the UAE, so the domestic rules decide most questions.

At a glance

• Tax treaty: Norway and the UAE do not have a double tax agreement. They have an agreement on exchange of information in tax matters.
• Exit tax: when you emigrate, latent gains on shares, fund units and similar assets are taxed above a basic deduction of NOK 3 million.
• Payment: you can pay at once, in instalments over 12 years, or defer, usually with security.
• Dividends: while the tax is deferred, 70% of dividends from the company must go towards repaying it.
• Residence: people who lived in Norway for more than ten years can remain Norwegian tax resident for the year they leave and the following three years, unless they show they have given up their Norwegian home and kept visits short.

Planning the move

Value your shareholdings before you leave, decide how the exit tax will be paid, and plan dividends with the 70% rule in mind. Without a treaty, cutting your Norwegian ties clearly is the main protection against continuing residence.

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

• Norwegian Tax Administration: Exit tax
• BDO: Norway exit tax rules tightened again
• Storting: Norway-UAE agreement on exchange of information in tax matters

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.