Setting up a holding company in the UAE
The UAE is a popular base for holding shares, property and investments, thanks to its treaty network, participation exemption and stable legal environment.
Why the UAE for holding
- More than 140 double tax agreements, which can reduce withholding tax on dividends and interest from abroad
- A participation exemption that can make qualifying dividends and capital gains from shareholdings exempt from corporate tax
- No withholding tax on outbound dividends
- Common-law options in DIFC and ADGM for complex structures
Choice of vehicle
| Option | Best for |
|---|---|
| Free zone holding company | Groups needing substance, visas and a UAE bank account |
| ADGM or DIFC holding company | Sophisticated structures, investment holding, family structures under common law |
| Offshore company | Simple asset holding with no need for visas or office |
| Foundation (DIFC, ADGM, RAK ICC) | Succession planning and family wealth |
Substance and treaty access
To benefit from a double tax agreement, the other country will usually expect the holding company to be genuinely managed in the UAE. Board meetings held in the UAE, a resident director and local records help. See Double tax treaties and Tax residency certificate.
Home-country anti-avoidance rules
Many countries tax their residents on the profits of low-taxed foreign companies they control (CFC rules). Before moving assets into a UAE company, confirm the position with your home adviser. See our nationality guides, for example For UK citizens and For US citizens.
Common questions
Can a holding company own shares in a Dubai mainland company?
Yes. UAE and foreign companies can be shareholders in mainland and free zone companies.
Do I need an office for a holding company?
Offshore holding companies do not. Free zone holding companies usually have at least a flexi-desk. Real substance strengthens treaty and banking positions.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.