Moving to Dubai from Australia

Australians are a large and growing community in Dubai, drawn by tax-free salaries and a base closer to Europe and Asia. Australia has no comprehensive tax treaty with the UAE, so the Australian rules on residence and capital gains decide what happens when you go.

At a glance

• Tax treaty: Australia and the UAE do not have a comprehensive double tax agreement.
• Residence: Australian residence depends on where you live in the ordinary sense, your domicile and your days in Australia. Keeping a home and family in Australia can keep you resident.
• CGT on departure: when you stop being resident, assets that are not taxable Australian property, such as most shares, are treated as disposed of at market value, unless you choose to defer.
• Your home: foreign residents generally cannot claim the main residence exemption when they sell an Australian home, unless they meet the limited life events test.
• Australian property: Australian real estate stays within Australian tax wherever you live.

Planning the move

Decide what happens to your family home before you leave. If you are likely to sell it, selling while still resident can preserve the main residence exemption. Review shares and investment portfolios for the CGT choice on departure, and look at your superannuation, which stays in Australia.

Building the UAE side

We set up your UAE company or employment structure, obtain a UAE tax residency certificate and handle the UAE filings, and work with your Australian adviser on the Australian return for the year you leave.

How Imperial Group helps

• A review of your residence position before you move, so you know when your home-country tax exposure actually ends
• The right UAE structure for your business: free zone, mainland or a holding company, with real substance
• Company setup, visas, Emirates ID and bank account opening support
• UAE tax residency certificate, corporate tax and VAT registrations from day one
• Ongoing accounting, tax filings and a single point of contact for everything in the UAE

Sources

• ATO: Foreign residents and the main residence exemption
• ATO: Foreign residents, temporary residents and changing residency

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.