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United Arab Emirates Tax Guide

Middle EastLast verified June 2026Exempt system

Top income tax
0%

No personal income tax

Capital gains
0%
Corporate
9%
VAT / GST
5%
Residency test
183 days
100/100Personal Tax ScoreExtremely Tax Friendly
92/100Business Tax ScoreExtremely Tax Friendly
Beyond taxLiving in United Arab Emirates#1place to live
Zero TaxLow Rate

In short

  • Dubai combines zero personal income tax with fast, purchasable residency, world-class flight connections and very fast internet, which makes it the default base for globally mobile founders.
  • No newcomer tax regime: the standard rates above apply to new residents.
  • Watch out: Summer heat above 40°C for four months, rising rents and a car-dependent, high-spend lifestyle quickly erode the tax saving.
Is United Arab Emirates right for you? Take the intake Full tax detail

Verified June 2026 · 3 sources

Recent changes

No changes logged since the last full verification.

Full change log

Best for

  • Zero personal tax

    0% on personal income — among the simplest tax outcomes globally.

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Exempt system — overseas income generally outside the local tax net.

  • Corporate-friendly

    9% corporate tax — competitive for founders and holding structures.

  • No wealth tax

    No annual tax on net worth or assets.

Personal Income Tax

Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes
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Tax Residency

Day Threshold
183 days
Note
183 days for Tax Residency Certificate; visa holders considered tax residents

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax

Foreign Income Treatment

System
Exempt
Details
No tax on any personal income regardless of source

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax for individuals

Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance tax

Practical Notes

Corporate tax of 9% applies to businesses with profits exceeding AED 375,000. Free zones offer 0% corporate tax for qualifying activities. Multinational groups with global revenue ≥ €750M now subject to 15% Domestic Minimum Top-up Tax (DMTT) for FYs starting on or after 1 Jan 2025 — free-zone incentives can be topped up if effective rate falls below 15%.

Business & Corporate Tax

Corporate rate, withholding, VAT, substance, Pillar Two and treaties
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Corporate Income Tax

Headline Rate
9%
Effective Rate Note
9% on taxable income above AED 375,000; 0% below threshold. MNE groups with global revenue ≥ €750M subject to 15% DMTT from FY 2025 (Cabinet Decision 142/2024).
Free Zone / Incentives
Free zones offer 0% corporate tax for Qualifying Free Zone Persons on Qualifying Income, with substance requirements. DMTT can top-up to 15% for in-scope MNEs.

Withholding Taxes

Dividends
0%
Interest
0%
Royalties
0%

VAT / GST

Rate
5%
Note
5% VAT on most goods and services; some exemptions

Compliance & Substance

Substance Requirements
Economic substance requirements apply for free zone benefits
Compliance Friction
Low - business-friendly regulatory environment

Notable Regimes

  • Free Zone 0% regime
  • QDMTT for large MNEs

OECD Pillar Two (15% global minimum tax)

LiveQDMTT from 1 Jan 2025

Cabinet Decision 142/2024: 15% Domestic Minimum Top-up Tax applies to UAE entities of MNE groups with consolidated revenue ≥ €750M for FYs starting on or after 1 Jan 2025. Free-zone QFZP incentives can be topped up to 15% for in-scope MNEs.

See full implementation tracker

Tax Treaty Network

US treatyNo
UK treatyYes
US totalizationNo
Total treaties~145

One of the largest treaty networks globally for a non-OECD jurisdiction. No US treaty despite extensive network — US-UAE bilateral negotiations have not produced one. UK and most EU treaties in force.

See full treaty matrix

Beyond tax

Living in United Arab Emirates

Dubai combines zero personal income tax with fast, purchasable residency, world-class flight connections and very fast internet, which makes it the default base for globally mobile founders.

#1of 53 best places to live
Expat hub
Dubai
Monthly budget
~$4,500
Climate
Hot and dry, 28°C
Time zone
UTC+4
  • Tax100
  • Cost of living$$$$
  • Safety87
  • Healthcare85
  • English85
  • Internet315 Mbps
  • Warm climate100
  • Residency access80
  • Scores 0-100, higher is better. Editorial composite ratings; see method.
Sweet spot🇦🇪 United Arab Emirates← Heavier taxLighter tax →

Ways to get residency

  • Remote Work Visa (Dubai)US$3,500/month income from a foreign employer or own foreign company, 1 year renewable
  • Golden Visa (property)AED 2 million in property, 10-year renewable residency
  • Free-zone company + investor visaSet up a free-zone company; visa issued against the licence

Watch out: Summer heat above 40°C for four months, rising rents and a car-dependent, high-spend lifestyle quickly erode the tax saving.

See how United Arab Emirates ranks for remote workers, retirees and families

Data Sources

PwC Worldwide Tax Summaries — UAE CorporateCabinet Decision No. 142 of 2024 (UAE DMTT)OECD Corporate Tax Statistics

Last verified: June 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in United Arab Emirates?

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United Arab Emirates has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in United Arab Emirates?

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United Arab Emirates uses a exempt system for foreign income. No tax on any personal income regardless of source

What are the residency requirements for United Arab Emirates?

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Tax residency in United Arab Emirates generally requires 183 days of physical presence. 183 days for Tax Residency Certificate; visa holders considered tax residents. Always verify current rules with official sources.

Is there a wealth tax in United Arab Emirates?

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No, United Arab Emirates does not have a wealth tax. No wealth tax

What is the corporate tax rate in United Arab Emirates?

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The corporate tax rate in United Arab Emirates is 9%. 9% on taxable income above AED 375,000; 0% below threshold. MNE groups with global revenue ≥ €750M subject to 15% DMTT from FY 2025 (Cabinet Decision 142/2024).

US citizen moving to United Arab Emirates? Read this first.

United Arab Emirates has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.

  • •FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
  • •Self-employment tax (15.3%) is owed in full — United Arab Emirates has no totalization agreement with the US, so there is no SE-tax exemption.
  • •Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no United Arab Emirates tax was paid.
  • •United Arab Emirates residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.
Read the full US-citizen moving-abroad guide

The Atlas · membership by intake

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Answer 12 quick questions and the Atlas builds your personal dossier: whether United Arab Emirates actually fits you, where your company should sit, the regimes you could qualify for and the traps for your situation.

Take the intake Or ask for an adviser for United Arab Emirates

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