Cayman and Dubai get lumped together constantly as "the zero-tax options," and on personal income tax, that's fair — both charge 0%. Past that headline, the two are structured quite differently, especially once a company is involved.
Personal Income Tax: Genuinely Tied
Neither the Cayman Islands nor the UAE charges personal income tax, capital gains tax on investments, or inheritance tax. On this specific point, they're equivalent — there's no meaningful difference in what an individual resident owes on salary, dividends, or investment gains in either jurisdiction.
Corporate Tax: Where They Diverge
Cayman charges 0% corporate tax, full stop, regardless of company size or profit level. The UAE introduced a federal corporate tax in 2023: a 9% rate applies to business profits above AED 375,000 (roughly $102,000). Businesses operating inside a UAE Free Zone can still qualify for 0% corporate tax on "qualifying income," but only if they meet an "adequate substance" test — real operations, employees, and assets physically based in the Free Zone — and don't do disqualifying business with the UAE mainland. Get the structuring wrong and you can end up paying the 9% rate anyway.
In other words: Cayman's 0% corporate rate requires no special structuring to access. The UAE's does — and it's an active compliance obligation, not a one-time setup.
Residency: The UAE's Golden Visa Is a Genuine Standout
Most standard UAE residence visas require you not be absent for more than six months at a stretch. The UAE Golden Visa removes that requirement entirely — once granted (via real estate investment of AED 2,000,000+, an equivalent bank deposit, senior employment at AED 30,000+/month, or specialist nomination), it's valid for 5–10 years with no minimum physical presence to maintain it. That's a real advantage if you want residency flexibility without being tied down.
Cayman's residency categories are generally built around actually establishing a life on-island — which tends to suit people who are relocating in substance, not just holding a backup residency on paper.
Other Costs to Factor In
The UAE levies a 5% VAT on most goods and services. Cayman has no VAT or sales tax, instead funding government revenue through import duties, tourism fees, and company registration/licensing fees. Day-to-day cost of living is high in both places, though for different reasons — Dubai's is driven by a large, fast-growing expat economy; Cayman's by being a small island that imports almost everything (see our cost of living guide for real numbers).
Which Actually Fits Better?
Dubai tends to suit people who want maximum residency flexibility (thanks to the Golden Visa), don't mind navigating Free Zone substance requirements for their company, and are drawn to a much larger, faster-paced expat and business hub. Cayman tends to suit people who want the simplest possible corporate structure — 0% with no substance test to pass — and who are comfortable committing to island life as an actual, not just paper, relocation.
Both are legitimate options, and plenty of people run businesses that touch both. Worth mapping out which one your specific structure and lifestyle actually fits before picking.