Comparison · International · EU
UAE vs Cyprus, compared.
UAE 0% qualifying / 9% above vs Cyprus 12.5% flat.
30-second answer
UAE for MEA-facing business + 0% tax. Cyprus for EU passporting, EU client base, and the established Cyprus IP-box regime.
Side-by-side
| Option | All-in Y1 | Tax |
|---|---|---|
| UAE Free Zone (IFZA) | USD 10,120 | 0% qualifying |
| Cyprus Ltd | USD 4,200 | 12.5% |
Key differences
- UAE 9% (0% QFZP) vs Cyprus 12.5%
- UAE residency vs Cyprus EU residency / passport
- UAE 140+ DTAAs vs Cyprus 70+ DTAAs (deeper into Europe)
- Cyprus IP-box reduces effective tax on qualifying IP to ~2.5%
- Cyprus EU member; UAE non-EU
Updated 16 May 2026 by ArxSetup. Reviewed by senior counsel.