Should You Start A Business In Ireland Or The UAE?

One of the most important factors to consider when starting a business is where it will be located. If you’re after a foreign destination, Ireland and the United Arab Emirates (UAE) are two of the top contenders.

Ireland, known as the Silicon Valley of both the UK and Europe, has built an exceptional business reputation. The country is particularly welcoming of entrepreneurs looking to innovate in technology and finance.

On the other hand, the United Arab Emirates (UAE), is a tax-free haven for business owners. Dubai and Abu Dhabi boast world-class infrastructure with more than forty free zones where foreigners can enjoy 100% business ownership.

Both countries are positioned to be leading settings for startups but they differ considerably when it comes to taxation, visa regulations and cultural differences. Let’s take a look at them side-by-side to help you decide.

How Startup-Friendly Are Ireland And The UAE?

Ireland has a strong reputation for being a conducive environment for startups. So much so, the country even ranks quite highly in the World Bank’s Ease of Doing Business Index. It’s home to tech giants like Google and Facebook, while Dublin in particular offers plenty of incubators, accelerators and funding opportunities.

Ireland is also part of the European Union (EU), making it significantly easier for EU residents to set up shop there with minimal limitations.

Similarly, the UAE offers appealing financial incentives for startups and businesses can enjoy zero income tax. The business registration process is fairly quick and can take just a few days, and entrepreneurs can access Europe, Asia and Africa if they want to expand internationally.

What Does It Cost To Live And Work In These Countries?

Ireland: Living costs are on the more expensive side, especially in Dublin. A one-bedroom apartment can set you back £1,800–£3,000 per month. Renting an office can cost anywhere between £500–£1,500 monthly. While public healthcare is available, the waiting times can be extensive so private insurance is always recommended.

UAE: Dubai and Abu Dhabi can also be costly although salaries are tax-free. A one-bedroom apartment can range from £1,500–£3,300 while co-working spaces start from £330. Unlike residents, expats do not have access to free public healthcare so private insurance is a must.

If finances are a major concern, the UAE would likely be a better option due to the absence of personal income tax. On the other hand, if you are after an EU location, Ireland can be worth the price tag.

Tax Rates In Ireland And The UAE

Ireland: The standard corporate tax is 12.5% but 15% for bigger multi-national corporations. The Value Added Tax (VAT) is set at 23% and individuals can pay up to 40% for personal income tax.

UAE: Free zones have 0% although the country implemented a 9% corporate tax rate for large businesses in 2023. VAT is at 5% and individuals don’t pay any personal income tax.

If avoiding high taxes is your goal, then the UAE is the clear winner in this case.

Will You Encounter Any Language Barriers?

Ireland: English is the official language so you won’t encounter any language issues there or need any translations for legal documentation.

UAE: English is widely spoken but Arabic is the official language. Some documents may be in Arabic which could require a translator for assistance if you are unable to speak it.

For a complete English-speaking environment, Ireland will be your best bet. However if you are comfortable with some Arabic translations on occasion, the UAE is still a strong option.

Visa And Residency Requirements For Foreigners

Ireland: Foreigners can apply for the Startup Entrepreneur Programme as long as they meet the requirements. It does require €43,000 and the business needs to demonstrate high-growth potential. The visa is renewable for two years and holders may apply for residency after five years.

UAE: The Investor/Entrepreneur Visa requires £110,000 investment in a startup while business owners can apply for a Golden Visa that lasts for ten years. For freelancers, a self-sponsorship visa would be the most ideal choice.

In terms of long-term residency, the UAE is a good choice. But if you want long-term EU residency, then Ireland would be the way to go.

Potential Challenges In Ireland And The UAE

Ireland: In addition to the high cost of living, there has also been a housing shortage in the last couple of years. With higher personal income tax, the overall expenses you will have there can be much higher.

UAE: The cultural differences are quite significant and residency is directly tied to business ownership so there are no long-term options for permanent residency. If you want to run your business in a free zone, you will need to keep in mind that not all business activities are allowed there.

Overall, in Ireland you may face more financial challenges than anything else. In the UAE, you will need to navigate more of the cultural and legal challenges.

How To Start A Business In Ireland Or The UAE

Ireland: The first step is to choose a business structure and register with the Companies Registration Office. Revenue will then issue you with a tax identification number and you can apply for any additional licenses that you may need. You can also open a business bank account and check to see if you are required to register for VAT depending on what your annual turnover is.

UAE: Decide between a free zone or mainland setup for your business and then apply for a business license. You can then apply for your investor or employment visas and open up a corporate bank account.

The UAE has a fairly fast setup while Ireland’s process is a bit more structured and could have more long-term benefits.