Which taxes apply in the UAE?

Tax Rate Source
Personal income tax on salary, investment income and gains None [1]
Individuals running a business in their own name Corporate tax once business turnover exceeds AED 1 million in a calendar year [6]
Corporate tax 0% up to AED 375,000 of taxable profit; 9% above it; 0% on qualifying income for Qualifying Free Zone Persons [7]
VAT 5% [2]
Excise tax 100% on tobacco, electronic smoking products and energy drinks; sweetened drinks by sugar content since 1 January 2026 [8]
Dubai property sale registration fee 4% of the sale value [3]
Dubai housing fee 5% of annual rent, added to the electricity and water bill [4][9]

UAE corporate tax explained →

How do you become UAE tax resident?

The Federal Tax Authority issues an individual a tax residency certificate in three cases, each over the relevant 12-month period: [10]

  • 183 days or more in the UAE, or
  • 90 to 182 days, with an Emirates ID and a job, business or permanent home in the UAE, or
  • your usual or primary residence and centre of financial and personal interests being in the UAE

The tax residency certificate proves it. You need one to use the UAE's tax treaties. [10] The UAE tax residency certificate →

What your home country keeps taxing

United Kingdom

  • Residence. The Statutory Residence Test decides, for each tax year, if you are still UK resident. [11]
  • UK property. Non-residents pay UK tax when they sell UK land and property. [12]
  • Coming back. Some income and gains received while abroad can be taxed when you return, if you were away for 5 years or less and had sole UK residence in at least 4 of the 7 tax years before leaving. [11]
  • Inheritance tax. A long-term UK resident stays within it on worldwide assets for 3 to 10 tax years after leaving, depending on how long they lived in the UK. [13]

Moving to the UAE from the UK →

India

  • Residence. India counts days each tax year: [14]
    • you're resident at 182 days or more, or at 60 days plus 365 days over the previous 4 years
    • for an Indian citizen or person of Indian origin visiting India with Indian income above ₹15 lakh, the 60 days becomes 120
    • an Indian citizen with Indian income above ₹15 lakh who isn't liable to tax elsewhere is "deemed resident"
  • Non-residents are taxed only on income that arises in India or is received there, such as rent, interest and gains on Indian assets. [15]
  • Money out. Resident individuals can send up to USD 250,000 per financial year (April to March) abroad under the Liberalised Remittance Scheme. [16]

Your Indian tax status after moving →

Germany

  • Leaving residence. You must deregister within 2 weeks of moving out when you take no new home in Germany. German tax turns on having a home available to you in Germany, or staying more than 6 months in a row, not on registration. Either keeps you fully taxable. [17][18][19][20]
  • Exit tax on shareholdings (§ 6 AStG). It applies if you held 1% or more of a company in the last 5 years and were fully taxable in Germany for 7 of the last 12 years. Leaving is treated as a sale at market value, so the unrealised gain is taxed. [21][22]
    • It can be paid in 7 annual instalments, usually only with security.
    • It's cancelled if you return within 7 years and the conditions are met.
    • It also covers investment fund holdings of 1% or more, or costing €500,000 or more. [23]
  • Extended limited tax liability (§ 2 AStG). This applies to a German national who was fully taxable for 5 of the last 10 years and moves to a low-tax country (or to no country) while keeping substantial German economic interests. They stay taxable on a wider range of German income until 10 years after the end of the year they left. [24]
  • Inheritance and gift tax. A German national without a German home remains fully within German inheritance and gift tax for 5 years after leaving. Where the extended limited tax liability above applies, the tax also reaches more than German-situated assets. Gifts and inheritances received by heirs living in Germany remain taxable. [25][26]
  • No tax treaty. The Germany–UAE double tax treaty expired on 31 December 2021. A joint declaration of 10 September 2026 says a new agreement on avoiding double taxation is still under negotiation. [27][28]

United States

  • Citizenship-based tax. US citizens and resident aliens, including green card holders, are taxed on worldwide income wherever they live. [5][29]
  • The foreign earned income exclusion covers up to $132,900 of earned income for 2026, if you meet the 330-day or bona fide residence test. Investment income isn't earned income, so it isn't covered. [29][30]
  • Reporting of foreign accounts is required: FBAR above $10,000 in total, and Form 8938 above the thresholds for taxpayers abroad. [31]
  • No US–UAE income tax treaty exists. [32]

US citizens moving to Dubai →

Is it possible to have no tax residence at all?

Being tax resident nowhere brings real problems:

  • No treaty protection. Using a tax treaty needs proof of residence, such as the UAE's tax residency certificate. [10]
  • German law targets it. It names being resident in "no foreign territory" as a trigger for extended tax. [24]
  • Banks ask. Under the Common Reporting Standard, they report every country of tax residence a client declares. [33]

How the UAE compares

Country Headline personal income tax on employment income Source
United Arab Emirates None [1]
Saudi Arabia None on income from employment [34]
Qatar None on salaries, wages and allowances [35]
Oman None today; 5% on annual income above OMR 42,000, from 1 January 2028 [36]
Singapore Residents: progressive, top rate 24% above SGD 1 million [37]
Switzerland Federal tax up to 11.5%, plus cantonal and communal tax that varies by canton and commune [38]
Monaco None for residents; French nationals living there are taxed by France [39]

How Marlborough Gulf helps

What we do:

  • We plan the UAE side of a move: residency, tax residence, the companies you'll hold, and the timing.
  • We coordinate it with the advisers in the country you're leaving.

What others do: Tax advisers in your home country advise on its rules, and you appoint them directly.

Book a consultation

Questions people ask

Is Dubai a tax-free country?

There's no personal income tax on salary, investment income or gains. VAT (5%), corporate tax on business profit, and property and housing fees do apply. [1][2][3][4]

Is Dubai tax-free for UK citizens?

UAE income tax doesn't apply. But the UK can still tax UK property gains, some gains if you return within 5 years, and the worldwide estate of a long-term resident for up to 10 years after you leave. [11][12][13]

Do I still pay tax in my home country after moving to Dubai?

It depends on the country:

  • the UK, India and Germany tax non-residents on some home-country income
  • Germany has an exit tax on shareholdings
  • the US taxes its citizens wherever they live

[12][15][21][29]

What is the 183-day rule in the UAE?

Spending 183 days in the UAE in the relevant 12-month period is one way to become UAE tax resident. A 90-day test applies with an Emirates ID and a job, business or home here. [10]

This guide is general information, not tax advice. Each country's rules have detail beyond this summary. Take advice from a qualified adviser in your home country before you move.

Related guides

Sources

  1. PwC Worldwide Tax Summaries, UAE: individual, taxes on personal income, reviewed 9 Sep 2026. https://taxsummaries.pwc.com/united-arab-emirates/individual/taxes-on-personal-income
  2. Federal Decree-Law No. 8 of 2017 on Value Added Tax, Article 3, Federal Tax Authority. https://tax.gov.ae/DataFolder/Files/Pdf/VAT-Decree-Law-No-8-of-2017.pdf
  3. Dubai Land Department, Registering the sale of a mortgaged property ("4% of the sales value"), site updated 14 Oct 2026. https://dubailand.gov.ae/en/eservices/registering-the-sale-of-a-mortgaged-property/
  4. u.ae, Leasing a property in the UAE, updated 20 Jan 2026. https://u.ae/en/information-and-services/moving-to-the-uae/leasing-a-property-in-the-uae
  5. IRS, U.S. citizens and resident aliens abroad, updated 20 Oct 2026. https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad
  6. Federal Tax Authority, Corporate tax: basis of taxation for natural persons. https://tax.gov.ae/en/taxes/corporate.tax/corporate.tax.topics/basis.of.taxation.natural.person.aspx
  7. PwC Worldwide Tax Summaries, UAE: corporate, taxes on corporate income, reviewed 9 Sep 2026. https://taxsummaries.pwc.com/united-arab-emirates/corporate/taxes-on-corporate-income
  8. Cabinet Decision No. 197 of 2025 on Excise Goods and Tax Rates, Ministry of Finance, issued 27 Nov 2025, effective 1 Jan 2026. https://mof.gov.ae/wp-content/uploads/2025/12/Cabinet-Decision-No.197-of-2025-on-Excise-Goods-Excise-Tax-Rates-and-the-Methods-of-Calculating-the-Excise-en-11.12.25.pdf
  9. Dubai Land Department, Frequently Asked Questions. https://dubailand.gov.ae/en/frequently-asked-questions/
  10. Federal Tax Authority, Issuance of Tax Certificates for Tax Residency, updated 22 Oct 2026. https://tax.gov.ae/en/services/issuance.of.tax.certificates.aspx
  11. HMRC, RDR3: Statutory Residence Test notes, updated 11 Jun 2026. https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3
  12. GOV.UK, Tax on your UK income if you live abroad: Capital Gains Tax. https://www.gov.uk/tax-uk-income-live-abroad/capital-gains-tax
  13. HMRC, Inheritance Tax if you're a long-term UK resident, 6 Apr 2025. https://www.gov.uk/guidance/inheritance-tax-if-youre-a-long-term-uk-resident
  14. Income Tax Department (India), e-filing help, Non-resident (residential status under the Income-tax Act 2025, section 6). https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/non-resident
  15. PwC Worldwide Tax Summaries, India: individual, taxes on personal income, reviewed 12 May 2026. https://taxsummaries.pwc.com/india/individual/taxes-on-personal-income
  16. RBI, Master Direction – Liberalised Remittance Scheme, updated 6 Sep 2024. https://www.rbi.org.in/Scripts/BS_ViewMasterDirections.aspx?id=10192
  17. Abgabenordnung § 8 (Wohnsitz), gesetze-im-internet.de. https://www.gesetze-im-internet.de/ao_1977/__8.html
  18. Abgabenordnung § 9 (gewöhnlicher Aufenthalt), gesetze-im-internet.de. https://www.gesetze-im-internet.de/ao_1977/__9.html
  19. Einkommensteuergesetz § 1, gesetze-im-internet.de. https://www.gesetze-im-internet.de/estg/__1.html
  20. Bundesmeldegesetz § 17, gesetze-im-internet.de. https://www.gesetze-im-internet.de/bmg/__17.html
  21. Außensteuergesetz § 6, gesetze-im-internet.de. https://www.gesetze-im-internet.de/astg/__6.html
  22. Einkommensteuergesetz § 17, gesetze-im-internet.de. https://www.gesetze-im-internet.de/estg/__17.html
  23. Investmentsteuergesetz § 19, gesetze-im-internet.de. https://www.gesetze-im-internet.de/invstg_2018/__19.html
  24. Außensteuergesetz § 2, gesetze-im-internet.de. https://www.gesetze-im-internet.de/astg/__2.html
  25. Erbschaftsteuer- und Schenkungsteuergesetz § 2, gesetze-im-internet.de. https://www.gesetze-im-internet.de/erbstg_1974/__2.html
  26. Außensteuergesetz § 4, gesetze-im-internet.de. https://www.gesetze-im-internet.de/astg/__4.html
  27. UAE Ministry of Foreign Affairs, Joint Declaration on the State Visit of the President of the UAE to Germany, 10 Sep 2026. https://www.mofa.gov.ae/en/mediahub/news/2026/9/10/uae-Germany
  28. EY Germany, "DBA mit den Vereinigten Arabischen Emiraten endet zum 31.12.2021", 15 Jul 2021. https://www.ey.com/de_de/technical/steuernachrichten/dba-mit-den-vereinigten-arabischen-emiraten-endet-zum-31-12-2021
  29. IRS, Publication 54, revised Dec 2025. https://www.irs.gov/pub/irs-pdf/p54.pdf
  30. IRS, Figuring the foreign earned income exclusion, updated 14 Mar 2026. https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion
  31. IRS, Comparison of Form 8938 and FBAR requirements, updated 19 Sep 2026. https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements
  32. IRS, United States income tax treaties – A to Z, updated 3 Jan 2026. https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z
  33. Deloitte Southeast Asia, "Singapore CRS 2.0: dual residency". https://www.deloitte.com/southeast-asia/en/services/tax/perspectives/singapore-crs2-dual-residency.html
  34. PwC Worldwide Tax Summaries, Saudi Arabia: individual, taxes on personal income, reviewed 29 Jul 2026. https://taxsummaries.pwc.com/saudi-arabia/individual/taxes-on-personal-income
  35. PwC Worldwide Tax Summaries, Qatar: individual, taxes on personal income, reviewed 17 Sep 2026. https://taxsummaries.pwc.com/qatar/individual/taxes-on-personal-income
  36. PwC Worldwide Tax Summaries, Oman: individual, taxes on personal income, reviewed 7 Jul 2026. https://taxsummaries.pwc.com/oman/individual/taxes-on-personal-income
  37. PwC Worldwide Tax Summaries, Singapore: individual, taxes on personal income, reviewed 2 Jul 2026. https://taxsummaries.pwc.com/singapore/individual/taxes-on-personal-income
  38. PwC Worldwide Tax Summaries, Switzerland: individual, taxes on personal income, reviewed 1 Jul 2026. https://taxsummaries.pwc.com/switzerland/individual/taxes-on-personal-income
  39. French tax administration, BOFiP BOI-INT-CVB-MCO-10 (France–Monaco tax convention), 2 Jun 2021. PwC publishes no Monaco page. https://bofip.impots.gouv.fr/bofip/12995-PGP.html