United Arab Emirates — Taxes

Personal income: zero The UAE levies no personal income tax on individuals — no tax on salary, dividends, capital gains, rental income or interest. This federal position is the core reason people relocate here on a UAE golden visa from higher-tax countries. It is the same headline as the Caribbean programmes, but backed by a large, diversified economy rather than a small island.

Corporate tax (9% since 2023) Since June 2023 the UAE applies a federal corporate tax of 9% on business profits above AED 375,000 (about USD 100,000); profit below that threshold is taxed at 0%. Very large multinational groups within the scope of the OECD global minimum tax can face a 15% effective top-up. Many free-zone businesses that meet the “qualifying income” conditions still enjoy a 0% rate. Crucially, this is a tax on business profit — an individual’s personal income remains untaxed.

Indirect tax (VAT at 5%) On the indirect side the UAE charges VAT at 5%, one of the lowest standard rates in the world, on most goods and services, with zero-rating and exemptions for some categories such as certain exports, healthcare and education. Separate excise taxes apply to tobacco, energy and sugary drinks. There is no additional sales or luxury tax layered on top.

What the UAE does not tax For individuals there is no wealth tax, no capital gains tax and no inheritance or estate tax. One real planning point: in the absence of a registered will, an estate located in the UAE defaults to Sharia succession rules — non-Muslim residents typically register a will (for example through the DIFC Wills service) to direct their assets instead.

Residency is not automatic tax residency The golden visa is a ten-year residence permit, not automatic tax residency. The UAE issues a Tax Residency Certificate to those who meet the presence and ties tests (broadly 183 days, or 90 days with a permanent home and ties). And as everywhere, moving here does not by itself end obligations to a country that taxes on citizenship — the United States — or that applies exit taxes on departure. We set this out in our guide to second citizenship and taxes.

Treaties, substance and the honest comparison The UAE has an extensive network of double-taxation treaties and takes part in the automatic exchange of financial-account information (CRS), so structures need genuine substance to hold up — a letterbox arrangement will not. If a low-tax base is the goal, weigh the UAE against EU options such as Portugal’s golden visa on our golden visa comparison, and read how the route works in practice in our timeline guide. Confirm your own position with a qualified tax adviser, and see our methodology for how we verify every figure here.