Is Dubai really tax-free? What foreigners still pay

For individuals, Dubai is one of the most tax-efficient places in the world to live. For businesses, it remains highly competitive, but it is no longer tax-free. Here is the honest picture.

What individuals do not pay

• No personal income tax on salaries, bonuses, dividends, interest or personal investment gains.
• No inheritance tax, gift tax or wealth tax.
• No capital gains tax on personal investments.

What individuals do pay

• VAT at 5% on most goods and services.
• Property costs such as the Dubai Land Department transfer fee on purchases and the housing fee charged on rented and owned homes through utility bills.
• Business income: individuals running a business in their own name are subject to corporate tax once their business turnover exceeds AED 1 million in a calendar year.

What businesses pay

• Corporate tax at 0% on taxable profits up to AED 375,000 and 9% above that.
• 0% for Qualifying Free Zone Persons on qualifying income, if every condition is met.
• Small Business Relief for resident businesses with revenue up to AED 3 million, extended for tax periods ending on or before 31 December 2029.
• VAT at 5%, with registration required above AED 375,000 of taxable supplies.
• Domestic Minimum Top-up Tax for large multinational groups with consolidated revenue of EUR 750 million or more.

The tax people forget: home

The biggest tax risk for people moving to Dubai is usually not the UAE but their home country. If you do not leave properly, your home country may continue to tax you on worldwide income. Read the guide for your country.

Sources

• Federal Tax Authority: Corporate tax
• The National: UAE extends Small Business Relief until 2029

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.