Moving from France to UAE — Business Migration

Target keyword: France to UAE relocation business Category: Relocation Crossover TLDR: French entrepreneurs face some of the highest taxes in the developed world. The UAE offers near-total relief — but France's exit tax rules are among Europe's toughest. Here's what French founders need to know.

France's Tax Burden

• France's combined tax rates for business owners are among the highest in the OECD:
• Income tax: up to 45%
• Social contributions (CSG/CRDS): 9.7% on capital income
• Solidarity tax (ISF replacement — IFI): On real estate assets above €1.3M
• Corporate tax: 25%
• Combined effective rate for high earners: 55–60%

The UAE's 0% personal income tax is the most significant lever.

France's Exit Tax (Article 167 bis CGI)

France has one of the world's most comprehensive exit taxes. Upon becoming a non-resident, you face:

• Unrealised capital gains: Taxed on gains in shares, securities, and rights in companies (if total value > €800,000 or more than 50% of company)
• Tax rate: Income tax + social charges = up to 34.5%
• Deferral: Possible for moves to EU/EEA countries; not available for UAE (non-EU)
• Payment: Due in the year of departure

Example: You own 100% of a French SAS worth €5M with an original cost of €100,000. Unrealised gain: €4.9M. Exit tax owed on departure to UAE: approximately €1.6M–€1.7M.

• This is a significant planning challenge. Options:
• Restructure holdings before departure (careful — France monitors pre-departure restructuring)
• Time the departure strategically
• Sell the company before leaving (actual sale often triggers similar or higher tax but provides cash)

Breaking French Tax Residency

France uses the following tests (any one is sufficient to establish French residency): 1. Home (Foyer): Principal home in France 2. Professional activity: Principal place of work or business in France 3. Economic interests: Centre of economic interests in France 4. 183-day rule: Physical presence in France more than 183 days

To break all four: move your home, your business, your assets, and your physical presence to the UAE.

Setting Up in the UAE

• French speakers are well-accommodated in Dubai:
• French Chamber of Commerce in Dubai (CCIFE) provides networking and support
• French-language business community substantial
• French international schools (Lycée Français) in Dubai for families

• Free zone recommendation:
• DIFC or ADGM for financial services
• DMCC for trading
• IFZA for professional services and consulting

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