Remote Business in the UAE: Is It Possible in 2026 and How to Avoid Tax Risks in Europe?

The dream of many entrepreneurs – a successful business with minimal taxes and remote management – ​​is a reality in the UAE. This country offers a unique combination of zero corporate tax for many companies, a highly developed infrastructure, a business-friendly government, and an international business environment.

However, the "open a company in Dubai and pay no taxes in the EU" scheme sounds simple only in theory; in reality, implementing it requires considering numerous legal nuances, developing and constantly adapting a tax strategy, and implementing it competently. Antwort Law, a legal consulting firm, specializes in creating secure structures in the UAE whose owners manage them remotely, often from Europe.

One of the most serious risks we prevent for our European clients is the recognition by European tax authorities of their UAE-registered companies as "shellentities," meaning they have no economic presence in the country. Over the past two years, due to the huge number of such companies, the EU has introduced strict ATAD3 (Anti-Tax Avoidance Directive) rules aimed at combating structures with the following characteristics:

• no office in the UAE;
• no employees in the UAE;
• no operating expenses in the UAE;
• actual management outside the UAE (meetings, signing of documents, etc.);
• management residing in Europe;
• more than 65% of income coming from foreign sources;
• having a large client base from Europe.

The "return" of such a company by the European tax authority to its jurisdiction leads to the following consequences for the owner:

• Payment of current taxes at the rates of the European country;
• Assignment of fines and penalties;
• Additional assessment of corporate tax for the last 5-7 years of the company's existence.

Banks may also block the accounts of such a company due to lack of substance.

If you want the "remotely managed UAE company" model to work, you need to create a minimal but legally sound substance. Antwort Law comprehensively creates a structure that withstands EU, FTA, bank, and audit inspections, without the need to relocate to the UAE:

• We establish management in the UAE (appoint a UAE COO physically located in the country);
• We select the appropriate office type: flexi, dedicated, or shared, and draw up a contract recognized by tax authorities;
• We organize a minimum staff of 1-2 employees, if necessary, for specific functions, formalized in accordance with the law;
• We document economic activity in the UAE – documentation, contracts, and transactions through the UAE;
• Obtaining a TRC

With proper organization, remote business in the UAE is possible. If you live in Europe or your UAE company actively works with Europe and you don't want to fall under ATAD3 due to a violation of the territorial management principle, contact us. We will conduct a thorough analysis and ensure your company is a UAE resident, legally, and de facto.

Antwort Law is an expert in international taxation, substance in the UAE, and business protection from EU risks.

Diana Gulevskaya

Head of Office in UAE
Antwort Law