United Arab Emirates Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
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
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax for individuals
Wealth & Inheritance
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 Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Free Zone 0% regime
- QDMTT for large MNEs
OECD Pillar Two (15% global minimum tax)
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 trackerTax Treaty Network
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 matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in United Arab Emirates?
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?
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?
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?
No, United Arab Emirates does not have a wealth tax. No wealth tax
What is the corporate tax rate in United Arab Emirates?
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.
Need someone to actually plan United Arab Emirates for you?
TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles United Arab Emirates cases.
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