Compare taxes and see how much you save moving from UAE to Germany
The UAE’s 0% personal income tax stands in stark contrast to Germany’s comprehensive tax burden. German workers face income tax at 14–45%, a solidarity surtax (5.5% of income tax, now largely phased out for lower earners but still applicable at high incomes), plus mandatory health insurance (7.3% employee), pension (9.3% employee), unemployment insurance (1.3% employee) and long-term care insurance (1.525% employee) — combined employment costs can reach 50–55% of gross. UAE: 5% VAT, no income tax, no CGT, no inheritance tax. Germany: 19% VAT, 25% Abgeltungssteuer on investment income, strong worker protections and social infrastructure. At $100K income the UAE saves $37,000/year ($3,083/month). UAE Golden Visa (10-year residency) available for investors and highly skilled workers; Germany Blue Card for non-EU skilled workers.
No Income Tax
UAE levies no personal income tax
Income Tax + Solidarity
14–45% + solidarity surtax + social contributions
At $100,000 income:
That is $3,083/month back in your pocket!
| Income | AE Tax | DE Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $16,000 | $16,000 | $160,000 |
| $75,000 | $0 | $25,500 | $25,500 | $255,000 |
| $100,000 | $0 | $37,000 | $37,000 | $370,000 |
| $150,000 | $0 | $59,000 | $59,000 | $590,000 |
| $250,000 | $0 | $110,000 | $110,000 | $1,100,000 |
| $500,000 | $0 | $225,000 | $225,000 | $2,250,000 |
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Work Remotely Between UAE & Germany →Germany’s Abgeltungssteuer is a flat 25% withholding tax (plus 5.5% solidarity surtax = ~26.375%) applied to investment income: dividends, interest, and capital gains on securities. It applies automatically via German banks as a final withholding tax. The UAE has no equivalent: there is no personal capital gains tax, no dividend tax, and no investment income tax on individuals in the UAE. For an investor holding a €500,000 portfolio generating 5% returns (~€25,000/year), Germany’s Abgeltungssteuer costs approximately €6,600/year vs €0 in the UAE. For high-net-worth individuals with large investment portfolios, this difference can exceed the income tax saving in absolute terms.
UAE Golden Visa: 10-year renewable residency available for investors (AED 2M+ property investment), entrepreneurs, STEM professionals, doctors, scientists, and exceptional students. Does not require employer sponsorship after granting. Holders can sponsor family members. Germany Blue Card: EU-wide work and residence permit for non-EU skilled workers with a university degree and a job offer paying at least €43,800/year (or €34,106 for shortage occupations in 2026). Valid for 4 years and leads to permanent residency (Niederlassungserlaubnis) after 21–33 months. The UAE Golden Visa offers longer tenure and employer independence; the German Blue Card offers EU access and a pathway to citizenship (now possible after 3 years in exceptional cases under the 2024 reforms).
UAE introduced VAT in January 2018 at a flat rate of 5% on most goods and services, with zero-rating for healthcare, education, and certain food items. Germany’s Mehrwertsteuer (VAT) is 19% standard rate with a reduced 7% rate on food, books, and public transport. On a $50,000 annual spending budget, UAE VAT costs approximately $2,500 vs German VAT of approximately $7,000–$9,500 (depending on spending mix). This compounds the income tax advantage for UAE residents. However, Germany’s VAT funds extensive public services that UAE residents pay for privately (healthcare, pensions, unemployment insurance).
German citizens who relocate to the UAE and formally deregister (Abmeldung) from Germany generally cease to be German income tax residents. Germany’s extended limited tax liability (erweiterte beschränkte Steuerpflicht) can apply for 10 years after departure for individuals with significant domestic income sources — but generally only to income from German sources (rentals, business in Germany). Once a UAE resident, UAE-sourced employment and business income is not subject to German income tax. However, German nationals must be careful: if they maintain a residence (Wohnung) in Germany, they may still be considered unlimited tax resident. Officially deregistering, returning property, and spending fewer than 183 days in Germany are all necessary to cleanly establish UAE tax residency.