🇵🇷Puerto Rico vs UAE🇦🇪
Checked November 4, 2026 · How we score
| Metric | Puerto Rico | UAE |
|---|---|---|
| Corporate tax | 4% | 9% |
| Top personal tax | 33% | 0% |
| Capital gains tax | 15% | 0% |
| VAT | 11.5% | 5% |
| Usual entity | Puerto Rico corporation or LLC (with a DDEC decree) | Free zone company (FZE/FZ-LLC) or mainland LLC |
| Setup cost | $3,000–$12k | $3,000–$8,000 |
| Yearly cost | $4,000–$15k | $2,500–$7,000 |
| Time to form | 13 weeks | 10 days |
| Remote setup | No | Yes |
| Banking difficulty | 2/5 | 3/5 |
| Digital nomad visa | No | Yes |
| Our score | 6.3/10 | 8/10 |
Choose Puerto Rico if…
- →US citizens and green-card holders who can relocate and want 4% tax
- →Remote service businesses and consultants with clients outside Puerto Rico
- →Crypto and fintech founders who want US banking and legal certainty
Choose UAE if…
- →Founders and freelancers who want zero personal income tax and a residence visa
- →Trading, consulting and e-commerce companies serving global clients
- →Crypto and Web3 founders using VARA or ADGM frameworks
- →Holding companies and family offices
Questions people ask
Is Puerto Rico or UAE better for a new company?
UAE has the lower overall tax burden (9% corporate, 0% top personal). UAE is also easier and cheaper to set up and run. Overall, UAE scores 8/10 on our index vs 6.3/10.
What is the Puerto Rico corporate tax rate under Act 60?
Eligible export-services companies with a DDEC decree pay 4% on export income, and dividends paid to Puerto Rico resident owners from that income are exempt. Without the decree, corporate tax is 18.5% plus a surtax up to a maximum of about 37.5%. The 4% rate does not apply to services performed for clients in Puerto Rico.
Do I have to move to Puerto Rico to get Act 60 benefits?
Yes, for individual benefits. You must be a bona fide resident: present for at least 183 days a year, with your tax home and closer connection in Puerto Rico, and not a resident in the previous six years. A non-resident owner of a Puerto Rico company cannot claim the personal exemptions.
Is Dubai tax free?
Not entirely. Dubai has no personal income tax or capital gains tax for individuals, but the UAE charges a 5% VAT and a 9% federal corporate tax on business profits above AED 375,000. Qualifying free zone companies can pay 0% on qualifying income.
Does Dubai have income tax?
No. The UAE does not tax salaries, dividends, interest or rental income of individuals. Individuals are only caught by corporate tax if they run a business activity in the UAE with annual turnover above AED 1 million.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.