For decades, Monaco, Luxembourg, and Malta have held the spotlight for Europeans seeking low-tax bases. But the UAE is quickly rising fast as a serious contender – not only because of tax benefits, but because it delivers scale, infrastructure, lifestyle, and global reach that Europe’s smaller hubs can’t match.
This isn’t just theory. The UAE has attracted $23 billion in foreign direct investment (FDI) in 2022, ranking among the top 20 destinations worldwide, and Dubai was named the No. 1 city globally for greenfield FDI projects in 2024, outpacing both London and Singapore. Entrepreneurs aren’t just chasing tax breaks anymore – they’re chasing growth.
The European classics: What they offer
1. Monaco
Monaco has long been synonymous with prestige. For high-net-worth individuals (HNWIs), the absence of personal income, capital gains, or wealth taxes is compelling. Yet, the business environment is restrictive. Companies must prove that 25%+ of turnover is earned outside Monaco to avoid corporate tax. Add to this the fact that Monaco’s real estate is the most expensive in the world at around €50,000 per sq metre (versus €7,500 per sq metre for prime property in Dubai), and it’s clear that Monaco’s benefits are mainly for those seeking a luxury lifestyle rather than scalable operations.
2. Luxembourg
Luxembourg plays a vital role in European finance, investment funds, and cross-border structures. But its tax regime is heavier than its reputation suggests. The average combined corporate tax rate is 23.8% to 24.9%, far higher than the UAE’s 9%. On the plus side, Luxembourg offers EU passporting rights, legal certainty, and a mature financial ecosystem – but entrepreneurs looking outside financial services may find the market narrow.
3. Malta
Malta appeals to expats with its remittance-basis system: foreign income kept abroad may not be taxed, and foreign capital gains can be exempt even if remitted. But Maltese-source income is taxed at progressive rates up to 35%, one of Europe’s highest. Bureaucracy is also slower, with company registrations and approvals often taking months compared to Dubai’s fast-track timelines.
4. Andorra
Andorra caps both personal and corporate income tax at 10%, making it attractive for individuals. But with a population of just 79,000, its market is too small to act as a serious global launchpad.
5. Liechtenstein
Famous for stability and holding structures, Liechtenstein is a secure base for wealth. However, its tiny domestic economy (GDP of $7.3 billion) means it functions as a private banking centre rather than an operational hub.
The UAE advantage: What makes it different
Tax system
The UAE’s tax regime is straightforward:
- 0% personal income tax, capital gains tax, or wealth tax.
- 9% corporate tax on profits above AED 375,000 (≈ €95,000).
- Qualifying free zone companies can enjoy 0% tax on certain income streams, making it one of the most competitive global frameworks.
Residency options
Unlike Europe’s smaller hubs, where residency is tightly capped, the UAE offers a spectrum of visas: Golden Visas for investors and exceptional talent, retirement visas, investor visas, and straightforward work permits. In 2023 alone, over 150,000 Golden Visas were issued, with Europeans among the fastest-growing applicant groups.
Business environment
With 40+ free zones tailored to industries from finance to media and AI, the UAE allows 100% foreign ownership, sector-specific infrastructure, and fast-track incorporation. Many licenses can be secured in weeks, not months. Dubai alone hosts more than 30 unicorns and scale-ups, proof of its growth ecosystem.
Lifestyle and infrastructure
The UAE’s value isn’t limited to tax. Dubai is one of the safest cities in the world, with crime rates 80% lower than global averages. It offers international schools, world-class healthcare, and a cosmopolitan population where over 200 nationalities live and work. Compare that to Monaco’s 39,000 residents or Malta’s 540,000 – Dubai offers genuine diversity and scale.
Location and scale
Dubai is positioned at the crossroads of Europe, Asia, and Africa. Its airports handled 86.9 million international passengers in 2023, ranking it the busiest airport in the world for international traffic. That connectivity makes Dubai a true global hub – far beyond what Europe’s microstates can offer.
Key differences Europeans should know
1. Monaco vs Dubai
Monaco offers prestige but limited economic opportunity. Dubai combines zero personal tax with scale, lower living costs, and a far bigger platform for global growth.
2. Luxembourg vs Dubai
Luxembourg’s high corporate tax contrasts with Dubai’s flat 9% – or 0% in many free zones. Luxembourg is great for finance, but Dubai is stronger for entrepreneurs in trade, tech, logistics, or media.
3. Malta vs Dubai
Malta’s bureaucracy slows business launch. Dubai’s streamlined free zone system means founders can start trading in weeks.
Other European hubs vs Dubai
Andorra, Liechtenstein, and others offer niche appeal, but they can’t compete with Dubai’s scale, talent pool, and infrastructure.
The future: Shifting preferences
Europe’s low-tax destinations remain prestigious. But global entrepreneurs are demanding more. They want mobility, reliability, and expansion potential, not just tax savings.
This shift is already visible. DIFC reports that 40% of new family offices setting up in Dubai now come from Europe. EU nationals also make up a growing share of Golden Visa recipients, drawn by Dubai’s blend of low taxes, high growth, and lifestyle advantages.
Increasingly, the choice isn’t between Monaco and Dubai – it’s between the old model of wealth shelter and the new model of wealth creation.
The takeaway
Monaco, Luxembourg, Malta, Andorra, and Liechtenstein each offer advantages in niche situations. But for many Europeans, the UAE is proving to be the smarter choice: no personal taxes, competitive corporate rates, flexible visas, and genuine global scale.
At Servefast Advisory, we help you evaluate whether Europe or the UAE – or a hybrid strategy – best fits your goals. The right decision isn’t just about tax. It’s about where your capital and business can grow.
Thinking about Dubai versus Monaco or Malta? Let’s talk. With the right structure, you don’t just save tax – you unlock opportunity.