Expat Taxes in the United Arab Emirates: complete guide

The UAE is one of the most popular destinations for expatriates, thanks to its tax-friendly policies, high standard of living, and global business opportunities.
Understanding how taxes work as an expat is essential for proper financial planning and compliance.

No personal income tax

One of the biggest advantages of living in the UAE is that there is no personal income tax. This means that:

• Salaries and wages are not taxed,
• There is no inheritance tax,
• There are no capital gains taxes on investments.

This policy makes the UAE highly attractive to foreign professionals and investors.

Corporate tax for business owners

While individuals do not pay personal income tax, business owners must be aware of the UAE’s corporate tax system, introduced in 2023 under Federal Decree-Law No. 47 of 2022.

• Profits below AED 375,000 are taxed at 0%,
• Profits above this amount are taxed at 9%.

Free zone companies may continue to enjoy exemptions if they meet specific conditions, such as: • Conducting business only outside mainland UAE, • Fulfilling reporting and compliance requirements.

Other taxes expatriates should know

Even without personal income tax, some other taxes may apply, including:

• Value-Added Tax (VAT): 5% on most goods and services.
• Excise tax: applied to products such as tobacco, sugary drinks, and electronic smoking devices.
• Real estate fees: registration and transfer fees for property transactions.

International considerations

While the UAE does not tax personal income, your home country may still require you to report earnings or assets abroad.

Example:

An expatriate from France working in Dubai may be subject to French tax reporting requirements, even if no UAE tax applies.

Double taxation agreements (DTAs) can help prevent paying tax twice on the same income.

Tax residency certificates

To benefit from a double taxation treaty, expats can apply for a Tax Residency Certificate from the UAE Ministry of Finance.

This document proves your residency status for tax purposes and can help reduce or eliminate taxes in your home country.

Maximize your tax advantages

Living in the UAE offers incredible tax benefits, but expatriates must stay informed about corporate taxes, VAT, and international reporting obligations.

At AGN Avocats Dubai, we assist expats and businesses with tax planning, compliance, and residency matters.

Our lawyers, who are experts in tax law, are available to answer all your questions and provide advice. We offer face-to-face meetings or videoconferencing. You can make an appointment directly online at https://www.agn-avocats.fr/.

AGN AVOCATS – Tax Law
contact@agn-avocats.fr
09 72 34 24 72