Construction Company Costs – Dubai vs Romania (2025)

Posted on 6 Oct at 2:20 am

Construction Company Costs — Dubai vs Romania (2025)

Reference conversions for comparison: 1 AED ≈ €0.232 • 1 EUR ≈ 5.09 RON. All figures include EUR (~) equivalents.

Company Setup — Dubai vs Romania

Dubai (UAE)

Forms: Free Zone LLC (100% foreign ownership), Mainland LLC (onshore operations).
Total initial cost: ~AED 15,000–50,000 (~€3,480–11,600), depending on zone/license/office/visas.
Residence visa (per person): ~AED 3,500–7,000 (~€810–1,625).
Typical timeline: Free Zone 3–10 business days; Mainland 1–3 weeks (approvals/office/visas).

Romania (SRL)

Standard form: SRL (share capital 1 RON ~€0.20).
Total initial cost: ~€100–500 (DIY) or ~€500–1,500 (turn-key package).
Typical timeline: 3–10 business days for registration + 1–3 weeks for bank account/VAT/permits (if needed).

Accounting (retainers) — Dubai vs Romania

Dubai (UAE)

Outsourced accounting (SME): ~AED 10,000–20,000/year (~€2,320–4,640).
VAT filings (quarterly): ~AED 4,000/year (~€930).

Romania

Small SRL accounting: ~€600–3,000/year (≈ €50–€250/month, volume/VAT dependent).
Annual filings: ~€150–300; virtual/hosted registered address (optional): ~€300/year.

Annual Admin Costs — Dubai vs Romania

Dubai (UAE)

License + office/flexi-desk: ~AED 14,000–40,000/year (~€3,250–9,300).
Accounting + VAT (from above): ~AED 14,000–24,000/year (~€3,250–5,575).
Total admin/year (ex-rent & payroll): ~AED 24,000–60,000 (~€5,575–13,950).

Romania

VAT: Rates & Thresholds — Dubai vs Romania

Dubai (UAE)

Romania

VAT 21% (since 1 Aug 2025).
Small-business exemption threshold: 395,000 RON (~€77,700–€78,000) from 1 Sep 2025; once exceeded ⇒ full VAT registration.

Corporate Tax / Small-Business Regimes — Dubai vs Romania

Dubai (UAE Corporate Tax)

0% on taxable profit up to AED 375,000 (~€87,000).
9% applies only to the portion of taxable profit exceeding AED 375,000 (~€87,000).

Romania

Corporate income tax (CIT): 16% (standard).
Micro-company regime (if eligible): 1% (or 3% for some CAEN codes).
Micro turnover cap: €250,000 in 2025; €100,000 from 1 Jan 2026 (exceeding ⇒ switch to CIT 16%).

Dividends — Dubai vs Romania

Dubai (UAE)

Generally no personal income tax and no withholding tax on dividends (check group/treaty specifics).

Romania

Payroll Taxes & Total Employee Cost — Dubai vs Romania

Romania (standard regime, 2025 current rules)

Employee (withheld from gross):
- CAS 25% (pension)
- CASS 10% (health)
- Income tax 10% (after applicable deductions)
Employer (on top of gross):
- CAM 2.25% (work insurance); additional mandatory contributions apply for special/onerous working conditions (~4%–8%).
Rule of thumb: Employer cost ≈ gross × 1.0225; net ≈ ~65–70% of gross (varies with deductions).
Illustration (no deductions): gross 8,000 RON (~€1,573) ⇒ employer cost ~8,180 RON (~€1,607); employee net ~€905–955.

Dubai (UAE, expatriates)

Personal income tax: 0%.
Mandatory social security: none for expatriates (GCC nationals have separate pension rules).
Typical employer recurring costs (annualized):
- Medical insurance: ~AED 700–2,500/employee/year (~€162–580).
- Visas & ID (annualized): ~AED 1,500–2,500/employee/year (~€350–580).
- End-of-Service Gratuity (provision): ~5.75% of basic annual for the first 5 years (21 days/year), then ~8.22% (30 days/year).
Illustration: basic AED 5,000/month (~€1,160) + allowances AED 2,000 (~€464) ⇒ package AED 7,000 (~€1,624); annual extras: EOSB ~AED 3,450 (~€799) + medical ~AED 1,200 (~€278) + visas ~AED 2,000 (~€464).

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