Over the last few years, many Australian business owners have started asking a simple question: Is there a better place to grow my business globally? For a growing number of entrepreneurs, the answer has been Dubai. And this shift isn’t slowing down – in fact, it’s expected to accelerate further in 2026.
Dubai has become especially attractive to Australian founders because of its low-tax environment, faster business setup process, and global reach. Unlike Australia, the UAE has no personal income tax, and its corporate tax is still considered one of the most competitive globally. Add to that the fact that Dubai consistently ranks among the top cities in the world for ease of doing business, safety, and quality of life, and it’s easy to see why many Australians are either relocating their businesses or setting up a second base here.
This guide is written to make the process clear and stress-free. We’ll walk you through how to move or expand your Australian business to Dubai in 2026, covering everything from legal structures and tax differences to business setup steps, visa, costs, and relocation essentials.
Why Australian Businesses Are Moving to Dubai
Australian entrepreneurs aren’t moving to Dubai on impulse. For most, it’s a well-thought-out decision driven by a mix of cost pressures back home, global growth ambitions, and lifestyle choices.
Here are some key reasons why:
1. The CEPA Advantage
The Australia-UAE Comprehensive Economic Partnership Agreement (CEPA), which went into full effect on October 1, 2025, has been a total game-changer.
- Tariff-Free Trade: Over 99% of Australian exports to the UAE are now tariff-free. For businesses in agritech, food, or manufacturing, this instantly makes your products more competitive than those from countries without a trade deal.
- Guaranteed Ownership: The deal locks in your right to 100% foreign ownership in over 120 service sectors, meaning you don’t need a local partner to hold your “keys” anymore.
2. Lower Tax Burden
One of the biggest reasons is simple: tax efficiency. In Australia, business owners deal with higher corporate tax rates, personal income tax, and ongoing compliance costs. In contrast, Dubai offers zero personal income tax and a comparatively low corporate tax structure.
3. Dubai Welcomes Entrepreneurs
Perhaps most importantly, Dubai actively welcomes international entrepreneurs. The government continues to introduce investor-friendly policies, long-term visas, and initiatives aimed at attracting global talent and businesses.
For Australians who feel boxed in by rising costs or limited expansion opportunities back home, Dubai offers a fresh, growth-oriented environment.
4. No More Time-Zone Struggles
Australia is often called “the tyranny of distance.” By moving to Dubai, you’re trading a 14-hour flight to Europe for a 6-hour one.
- The 8-Hour Rule: From Dubai, you can reach two-thirds of the world’s population within an 8-hour flight.
- Time Zone Synergy: You can finish your morning calls with Sydney/Melbourne, handle your midday operations in the Gulf, and still catch the opening of the London and New York markets in the afternoon.
5. Lifestyle, Safety, and Quality of Life
For many Australian founders, the move isn’t just about business, it’s also about lifestyle. Dubai consistently ranks among the safest cities globally, offers excellent healthcare and education, and provides a high standard of living.
Can You Move an Existing Australian Business to Dubai?
Yes, but the move can happen in different ways. Most Australian businesses don’t physically shift everything overnight. Instead, they choose a structure that makes sense for their goals, taxes, and long-term plans. To make the right decision, it helps to understand the difference between relocation, expansion, and restructuring.
Relocation vs Expansion vs Restructuring (What’s the Difference?):
- Relocation means shifting the main business base from Australia to Dubai. Operations, management, and revenue generation primarily happen from the UAE, while Australian activities may be reduced or closed over time.
- Expansion means keeping your Australian business active while opening a Dubai entity to serve international or regional markets. This is a popular choice for businesses testing the waters before fully committing.
- Restructuring involves reorganising how your business operates – for example, moving certain functions (like sales, management, or holding structures) to Dubai for tax efficiency or global access, while operational work may still happen in Australia.
Dubai Business Expansion Options for Australian Companies
Most Australian business owners choose one of these three paths:
Option 1: Opening a Dubai Branch
A Dubai branch allows your existing Australian company to operate directly in the UAE under the same legal identity.
- No separate legal entity
- Ideal for companies wanting to extend operations without creating a new company
- Parent company remains fully responsible for the branch’s activities
This option works well for established businesses with a clear UAE-focused operation.
Option 2: Setting up a Subsidiary
This is like having a “child” company. You create a brand new legal entity in Dubai (like an LLC), but your Australian company owns the shares.
- Offers better risk protection
- Easier to manage local operations and banking
- Common choice for long-term expansion
Many Australian businesses prefer this route because it provides flexibility while keeping the parent company structure intact.
Option 3: Starting a New UAE Entity (and Gradually Winding Down Australia Operations)
Some entrepreneurs choose to set up a new company in Dubai and slowly reduce or close their Australian business.
- This is the cleanest way to fully break tax residency with the ATO and commit to the 0% personal tax lifestyle.
- You have to “transfer” your contracts, IP, and brand to the new company.
This approach is common for founders looking for a fresh start in a more globally connected market.
Dubai Mainland vs Free Zone: Which Is Better for Australian Businesses?
One of the first (and most important) decisions Australian entrepreneurs face when moving to Dubai is choosing between a Mainland or a Free Zone company setup. There’s no one-size-fits-all answer, the right option depends on how and where you plan to do business.
Let’s break it down simply.
| Feature | Dubai Mainland | Dubai Free Zone |
| Best For | Retail, local services, and government contracts. | E-commerce, tech, consulting, and global trading. |
| Market Access | Trade anywhere in the UAE without restrictions. | Mostly international trade or within the specific zone. |
| Ownership | 100% for most industries. | 100% guaranteed for all industries. |
| Office Needs | Mandatory physical office (min. 200 sq ft). | Flexi-desks or virtual offices options available. |
| Visa Quotas | Unlimited (based on your office size). | Limited (usually 1–6 visas per package). |
| Corporate Tax | 9% on profits over AED 375k (~AUD 155k). | 0% on “qualifying income” for most zones. |
2026 Trend: A new trend for 2026 is the Mainland-Free Zone Operating Permit. This is a special permit that allows Free Zone companies to work on the Mainland for specific projects or short periods (around 6 months) without opening a whole second company. It’s perfect for Aussie tech startups who want to “test the waters” of the local market before diving in fully.
How to Move Your Business from Australia to Dubai?
Moving your business from Australia to Dubai is best done in phases. Instead of rushing into setup, successful founders take time to plan the structure, understand compliance, and transition smoothly without disrupting existing operations.
1. Decide the Right Structure for Your Move
Before anything else, you need to decide how your Australian business will operate in Dubai. Some businesses expand by opening a Dubai entity. Others choose a full relocation over time. The most common options include opening a branch, setting up a subsidiary, or creating a new UAE company. This decision impacts ownership, taxation, banking, and long-term flexibility.
2. Finalise Your Business Activity
Dubai issues licenses based on specific business activities, which makes this step critical. You’ll need to clearly define what your business will do in the UAE.
3. Choose Between Mainland and Free Zone
Once your activity is confirmed, you must decide where to register your company. Mainland setups work best if you plan to serve UAE-based clients or operate physically within the local market. Free zones are more suitable for businesses focused on international clients, digital services, or remote operations.
4. Register Your Trade Name
You’ll need to submit name options for approval. Avoid names that are already taken, offensive, or use religious terms. Under the new trade agreement, Australian companies can often “reserve” their existing Australian name if they can prove it’s a registered trademark in Australia.
5. Prepare and Submit Required Documents
When moving or expanding your business from Australia to Dubai, having the right documents ready can save a lot of time.
Personal Documents:
- Passport copy (valid for at least 6 months)
- Passport-size photograph (UAE specification)
- Entry visa or visit stamp (if you are already in the UAE)
Australian Company Documents (If Opening a Branch or Subsidiary):
If you are linking your Dubai setup to an existing Australian business, authorities will ask for proof of your company’s legal existence in Australia.
- Certificate of Incorporation
- Memorandum and Articles of Association
- Company extract or registration certificate
- Board resolution approving the Dubai setup
UAE Business Setup Documents:
- Trade name reservation certificate
- Initial approval certificate
- Business activity description
- Lease agreement or flexi-desk contract
Additional Documents (If Applicable):
Depending on your business activity or structure, additional paperwork may be required, such as:
- No Objection Certificate (NOC)
- Regulatory or third-party approvals
- Professional qualification certificates (for regulated activities)
6. Obtain Your Dubai Business License
Once all approvals and documents are in place, your Dubai business license is issued. This is the point where your company becomes legally active in the UAE. The license clearly states your business activity, legal structure, and jurisdiction.
7. Secure an Office/Ejari (Physical or Virtual)
To get your final license, you need a legal address in Dubai.
- Mainland: Requires a physical lease (known as an Ejari).
- Free Zone: Most offer Flexi-desks or Smart Desks. These are shared spaces that give you a legal address without the cost of a full office.
8. Apply for Investor or Partner Visa
After licensing, you can apply for your UAE investor or partner visa. This involves medical testing, biometric registration for the Emirates ID, and visa stamping. Once issued, this visa allows you to legally reside in the UAE and manage your business. You can also sponsor family members once your residency is active.
9. Open a UAE Corporate Bank Account
Opening a corporate bank account is one of the most important and sometimes time-consuming steps. You’ll need to provide company documents, ownership details, and information about business activities.
10. Manage Australian Compliance and Transition
If you plan to reduce or close operations in Australia, this step must be handled carefully. You may need to manage tax obligations, employee transitions, contracts, and regulatory requirements in Australia. Even if you keep your Australian entity active, proper planning helps avoid double taxation and compliance issues across both jurisdictions.
Tax Considerations: Australia vs Dubai
Tax is one of the biggest reasons Australian entrepreneurs consider moving or expanding their business to Dubai. Here is the simple breakdown of how the two compare as of 2026.
| Tax Type | Australia (2026) | Dubai / UAE (2026) |
| Personal Income Tax | 15% to 45% (plus 2% Medicare) | 0% (Always) |
| Corporate Tax | 25% (SMEs) or 30% (Large) | 0% up to ~AUD 155k profit; 9% after |
| Capital Gains Tax | Included in income (50% discount if held 1yr+) | 0% (Generally) |
| GST / VAT | 10% | 5% |
The “183-Day” Rule (and the new 45-day test):
As of 2026, the ATO has tightened the rules. To be considered a “non-resident” for tax purposes (meaning you stop paying Australian tax on your Dubai earnings), you generally need to:
- Spend less than 45 days in Australia per year if you still have strong ties (like a house or family) there.
- Spend more than 183 days in the UAE to be recognised as a tax resident there.
If you stay in Australia for more than 183 days in a year, the ATO automatically considers you a resident, and they will want a slice of your global income.
No Double Taxation (CEPA Update):
Thanks to the recent trade agreements, it’s now much easier to prove you’ve paid your taxes in Dubai. While Australia and the UAE don’t have a traditional “Double Tax Treaty” like Australia has with the UK, the new CEPA framework provides better protections for businesses to ensure you aren’t being unfairly taxed by both sides on the same dollar.
What is the Cost of Moving Your Business from Australia to Dubai?
For most Australian entrepreneurs, the initial business setup cost in Dubai typically starts from AED 12,000 to AED 30,000 ($4,900 – $12,500 AUD) for basic free zone setups. Mainland companies usually fall on the higher side, around AED 25,000 to AED 50,000+ ($10,500 – $21,000 AUD), due to additional requirements such as office space and approvals. The final cost depends on your business activity, jurisdiction, and visa requirements.
In addition to the license fee, you should budget for:
- Investor or partner visa costs, including medical tests and Emirates ID
- Office or flexi-desk rental, depending on your setup
- Annual renewals and compliance costs, such as license renewal and VAT registration (if applicable)
For a more accurate cost breakdown for your business, get in touch with business setup experts at All Emirates Setup.
Is Dubai the Right Move for Your Australian Business?
So, is Dubai the right move for your Australian business? For many business owners, it is truly – especially if you’re looking for better global reach, lower tax pressure, and more freedom to grow. That said, the move works best when it’s planned properly from the start. Choosing the right setup, understanding tax and visa rules, and handling Australian compliance early can save you from stress and unnecessary costs later.
This is where AE Setup comes in. Our team helps Australian entrepreneurs at every step – from choosing the right mainland or free zone setup to handling licenses, visas, banking, and paperwork. With expert guidance and clear advice, moving your business to Dubai becomes simpler, smoother, and far more confident.
