By Dubai Tax Resident Editorial Team · Last reviewed: October 2026
Dubai does not tax personal income. Salaries, dividends, interest, rental income and capital gains of individuals are not subject to income tax in the UAE. Dubai is not completely tax-free, though: businesses pay 9% corporate tax on profits above AED 375,000, most goods and services carry 5% VAT, and residents pay a municipality housing fee on rent. Whether you actually stop paying tax also depends on whether your home country still treats you as resident.
This guide covers what is and is not taxed in Dubai, what self-employed people and company owners need to know, and why moving is only half of the tax picture.
Key facts
- Personal income tax: 0% on salary, dividends, interest and personal capital gains
- Corporate tax: 0% up to AED 375,000 of taxable profit, 9% above
- Individuals in business: fall under corporate tax once turnover exceeds AED 1 million a year
- VAT: 5% standard rate
- Inheritance and wealth tax: none
- Housing fee: 5% of annual rent for Dubai tenants, collected via DEWA bills
- Property transfer: 4% Dubai Land Department fee when buying
Is there income tax in Dubai?
No. The UAE has no federal or emirate-level personal income tax. If you are employed in Dubai, your gross salary is your net salary, with no payroll tax withheld for expatriates. The same applies to investment income an individual earns privately, such as dividends from shares, bank interest, rent from personal property or gains from selling shares or crypto held as a personal investment.
UAE nationals and GCC citizens working in the private sector pay social security contributions, but expatriates do not. Instead, employers pay an end-of-service gratuity, and some free zones operate their own savings schemes.
Which taxes do you pay in Dubai?
Corporate tax
The UAE introduced federal corporate tax under Federal Decree-Law No. 47 of 2022 for financial years starting on or after 1 June 2023. Taxable profit up to AED 375,000 is taxed at 0%, and profit above that at 9%. Qualifying free zone companies can benefit from 0% on qualifying income if they meet strict substance and activity conditions. Very large multinational groups with global revenue of at least EUR 750 million are subject to a 15% domestic minimum top-up tax.
Corporate tax for freelancers and sole traders
Individuals are not taxed on salary or private investments, but an individual who runs a business or freelance activity in the UAE falls under corporate tax once the total turnover of that business exceeds AED 1 million in a calendar year. Below that, the activity is not taxed. If you earn more, you must register with the Federal Tax Authority (FTA) and file a return, although small business relief may apply while revenue stays under AED 3 million in eligible periods.
VAT
VAT has applied since 2018 at a standard rate of 5%. Some items, such as certain healthcare, education and international transport, are zero-rated, while residential rent and local passenger transport are generally exempt. Businesses with taxable supplies above AED 375,000 a year must register for VAT.
Housing fee and property costs
Dubai tenants pay a municipality housing fee of 5% of annual rent, added to their DEWA utility bill. Property owners pay a smaller fee based on the property value. When buying property, the Dubai Land Department charges a 4% transfer fee plus registration costs.
Excise tax and other charges
Excise tax of 50% to 100% applies to tobacco, energy drinks, sugary drinks and e-cigarettes. You also pay government service fees for visas, Emirates ID, driving licences and company licences, which are often the real cost of living legally in Dubai.
Which taxes does Dubai not have?
| Tax | Dubai / UAE | Typical in Europe |
|---|---|---|
| Personal income tax | None | Yes, often 40% to 55% top rate |
| Tax on dividends and interest | None for individuals | Yes |
| Capital gains tax (private) | None | Yes in most countries |
| Inheritance and gift tax | None | Yes in most countries |
| Wealth tax | None | Some countries |
| Annual property tax | None (housing fee only) | Yes |
Do you really stop paying tax when you move to Dubai?
Not automatically. Your home country decides when you stop being its tax resident, and the rules vary widely. Germany looks at whether you keep a home available to you. The UK applies the Statutory Residence Test day by day. Finland can keep its citizens resident for three years after leaving, and Sweden can tax you for five years if you keep an essential connection. Several countries also charge an exit tax on unrealised gains in company shares when you leave.
On the UAE side, you can prove residency with a Tax Residency Certificate from the FTA. Under Cabinet Decision No. 85 of 2022 you qualify as a UAE tax resident if your centre of life is in the UAE, if you spend 183 days there in 12 months, or if you spend 90 days there while holding a residence visa and a permanent home or business in the UAE. A well-documented move covers both sides: leaving your home system cleanly and building a defensible Dubai tax residency.
Want to know what you would actually pay after moving?
We review your home-country rules, your income and your assets, and map out a clean exit and a solid UAE tax residency.
Practical example
A UK consultant moves to Dubai, sets up a free zone company and pays herself a salary of AED 40,000 a month. Her salary is tax-free in the UAE. Her company’s profit above AED 375,000 is taxed at 9% unless it qualifies for the free zone regime. She pays 5% VAT on her purchases and a 5% housing fee on rent. In the UK, she must meet the Statutory Residence Test to stop being UK resident, and she must watch the temporary non-residence rules if she plans to return within five years.
Frequently asked questions
Dubai has no personal income tax, so salaries and private investment income are not taxed. It does have 9% corporate tax on business profits above AED 375,000, 5% VAT, excise tax and a housing fee on rent, so it is low-tax rather than entirely tax-free.
No. Expatriates employed in Dubai receive their salary without income tax or social security deductions. Your home country may still tax you if you remain its tax resident under its own rules.
Personal income is taxed at 0%. Companies pay 0% on taxable profit up to AED 375,000 and 9% above that, and the standard VAT rate is 5%. Large multinational groups pay a 15% minimum top-up tax.
Freelancers pay no tax on business income as long as their total turnover stays at or below AED 1 million a year. Above that, the business falls under UAE corporate tax and must register with the Federal Tax Authority.
Individuals do not pay capital gains tax on private investments such as shares, crypto or personal property. Gains made through a company or a taxable business activity can fall under corporate tax.
No. The UAE has no inheritance or gift tax. Succession can be governed by local rules by default, so many expatriates register a will, for example with the DIFC Wills Service or Dubai Courts.
Tenants pay a municipality housing fee of 5% of their annual rent, collected monthly through the DEWA utility bill. Property owners living in their own home pay a fee based on the property’s value.
It can. Each country applies its own residency rules, such as the UK Statutory Residence Test or Finland’s three-year rule, and some charge exit tax on shares. You need to break residency at home, not only gain it in the UAE.
Apply for a Tax Residency Certificate from the Federal Tax Authority. You typically need a residence visa, Emirates ID, a tenancy contract or title deed, and evidence of days spent in the UAE.
Yes. Most goods and services carry 5% VAT. Residential rent and some financial services are generally exempt, and some healthcare, education and international transport are zero-rated.
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Disclaimer: This article provides general information only and is not tax or legal advice. Tax rules change and depend on your personal circumstances; consult a qualified adviser before acting.