Client Profile
| Detail |
Info |
| Name |
Romain (anonymized) |
| Age |
31 |
| Nationality |
French |
| Residence |
Bordeaux, France |
| Situation |
Amazon FBA seller (EU + US), €1M/year revenue, ~€250K net profit |
| Family |
Partner (not married), no children |
| Business |
SAS registered in France, 1 employee (himself) + 2 VAs |
The Problem
Romain's e-commerce business had grown from a side project to €1M revenue. His French tax reality:
| Charge |
Amount |
| Corporate tax (IS 25%) on €250K profit |
€62,500 |
| Dividend tax (PFU 30%) on distribution |
€56,250 |
| Social charges on dividend (if >10% of capital) |
~€10,000 |
| CFE + other |
€2,500 |
| Total tax on €250K profit |
~€131,250 |
| Net take-home |
~€118,750 |
Effective tax rate: 52.5% on his profit. More than half of what he earned went to the French state.
His business was entirely digital — products shipped from Chinese suppliers to Amazon warehouses. He never touched inventory. He could run this from anywhere with Wi-Fi.
The Solution
Structure: Dubai Freezone + EU VAT Management
| Action |
Timeline |
Cost |
| IFZA Freezone license (e-commerce) |
1 week |
€5,200 |
| UAE residency visa |
1 week |
Included |
| Emirates ID |
1 week |
Included |
| Wio bank account |
3 days |
Free |
| ENBD business account |
2 weeks |
€1,800 |
| Amazon seller account migration |
2 weeks |
Internal |
Key Challenge: EU VAT
Romain's biggest concern was VAT compliance. Selling on Amazon EU means collecting VAT in each EU country where inventory is stored (via Amazon's pan-EU FBA program).
| Country |
VAT registration |
Obligation |
| 🇫🇷 France |
Already registered |
Continue filing |
| 🇩🇪 Germany |
Already registered |
Continue filing |
| 🇮🇹 Italy |
Already registered |
Continue filing |
| 🇪🇸 Spain |
Already registered |
Continue filing |
| 🇵🇱 Poland |
Already registered |
Continue filing |
Important: Moving to Dubai does NOT eliminate EU VAT obligations. If goods are stored in EU warehouses, VAT is owed in those countries regardless of where the seller is based.
What changes: The income tax and corporate tax on profit shift to the UAE jurisdiction — which taxes them at 0%.
Tax Structure in Dubai
| Tax |
Rate |
Amount |
| UAE Corporate tax (Freezone, qualifying income) |
0% |
€0 |
| UAE Personal income tax |
0% |
€0 |
| Total tax on €250K profit |
|
€0 |
| EU VAT (collected and remitted) |
Various |
Pass-through (collected from customers, remitted to tax authorities) |
Financial Comparison (Annual)
| Item |
France |
Dubai |
Difference |
| Revenue |
€1,000,000 |
€1,000,000 |
— |
| COGS + Amazon fees |
-€600,000 |
-€600,000 |
— |
| Operating expenses |
-€150,000 |
-€150,000 |
— |
| Net profit |
€250,000 |
€250,000 |
— |
| French IS + dividends + social |
-€131,250 |
€0 |
+€131,250 |
| UAE structure costs |
N/A |
-€8,000/year |
-€8,000 |
| VAT compliance (EU, outsourced) |
-€6,000 |
-€8,000 |
-€2,000 |
| Cost of living delta (Dubai vs Bordeaux) |
Baseline |
+€15,000 |
-€15,000 |
| Net annual benefit |
|
|
+€106,250 |
Operational Changes
| Element |
Before (France) |
After (Dubai) |
| Entity |
SAS française |
IFZA FZ-LLC |
| Amazon account |
French legal entity |
UAE legal entity |
| Supplier payments |
French bank |
ENBD Dubai |
| VAT filing |
French accountant |
Specialized EU VAT agent |
| Accounting |
French comptable |
UAE bookkeeper + EU VAT specialist |
| Working hours |
Same |
Same (manages EU market from GMT+4) |
Amazon Account Migration
This was the most technically sensitive part. Amazon requires:
| Step |
Timeline |
| Register new seller account under UAE entity |
1 week |
| Transfer ASIN listings and reviews |
Via Amazon support (case-by-case) |
| Update bank details for payouts |
Immediate once ENBD active |
| VAT registrations updated to new entity |
4-6 weeks |
Note: Amazon allows entity changes for existing accounts. The process is smoother than many sellers expect, but timing it to avoid payout disruptions is critical.
French SAS Liquidation
| Step |
Timeline |
Cost |
| Stop new sales through French entity |
D-Day |
|
| Final stock reconciliation |
2 weeks |
— |
| Final IS declaration |
3 months |
€3,000 |
| Distribution of remaining assets |
3 months |
PFU 30% on final distribution |
| Radiation (deregistration) |
6 months |
€1,500 |
Timeline
Month 0 → Engaged Private Office
Month 1 → Dubai entity + visa + banking
Month 2 → Amazon account migration initiated
Month 3 → First revenue through UAE entity
Month 3 → French SAS wind-down begins
Month 6 → French SAS liquidated
Month 7 → Fully operational from Dubai
Services Used
| Service |
Cost |
| Private Office — Plan B Light + e-commerce adaptation |
€12,000 |
| EU VAT agent setup (5 countries) |
€4,000 |
| French SAS liquidation |
€4,500 |
| Total |
€20,500 |
| Payback period |
~2.5 months |
Key Takeaways
- E-commerce sellers above €100K profit benefit enormously from UAE relocation
- EU VAT obligations persist — you cannot escape VAT by moving
- The tax savings come from corporate and personal income tax elimination
- Amazon account migration is feasible but requires careful planning
- The French SAS must be properly liquidated — you can't just abandon it
- Cost of living in Dubai is higher, but dwarfed by tax savings at this income level
⚠️Disclaimer: VAT obligations depend on where inventory is stored and where customers are located. Individual analysis is required.
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