- Dubai free zones grant 100% foreign ownership of holding companies without the need for a local sponsor
- Qualifying free zone income can enjoy a 0% corporate tax rate under the UAE’s new regime, provided substance requirements are met
- No withholding tax is levied on dividends, interest, or royalties for free zone holding entities
- Key compliance steps include annual audited financial statements, Economic Substance Regulations filings, and timely license renewals
- Popular free zones for holding structures include JAFZA, DMCC, DIFC, ADGM, and RAKEZ—each offering unique sector advantages and infrastructure support
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