Successful Exit from Dutch Tax Residency to the UAE

A Dutch tech entrepreneur planned to relocate his business activities to the United Arab Emirates. While the move offered significant operational and tax advantages, it triggered an immediate risk: Dutch "exit tax" rules would treat his unrealized company gains as taxable, potentially creating a massive cash drain without an actual sale.

Recognizing this, Sovereign Partners engineered a comprehensive migration strategy.  Firstly we recognized that this SAAS company was build wholly by him, he had no employees or other forms of human capital, there was no office, just him and his software. Under the ‘usual’ Discounted Cash Flow method the valuation of his company would have been upwards of 9.4M EUR......, where of the main value was in the IP.



We designed an asset freeze and internal reallocation prior to departure, structured compliant exit documentation, and established a UAE-based operational company to continue business activities internationally. Throughout the process, we navigated Dutch tax law intricacies to legally defer the exit tax liability,  avoiding unnecessary liquidation or debt burdens.As a result, the client successfully preserved more than €9 million in company value, legally exited Dutch tax residency, and relaunched global operations via the UAE entity ,  all within 90 days.This case study exemplifies how strategic structuring, expert jurisdictional planning, and proactive execution can transform international relocation into a high-leverage wealth preservation strategy.