Relocation tax guideMoving to United Arab Emirates: Taxes for Expats 2026
The UAE levies no personal income tax - none on salaries, wages, or personal investment income - and no inheritance or estate tax. Since June 2023 it applies a 9% federal corporate tax on business profits above AED 375,000, with relief for qualifying free-zone activity, plus 5% VAT. Individuals generally become UAE tax resident after 183 days.
For many movers the UAE's appeal is simple: individuals pay no personal income tax. That has not changed with the arrival of corporate tax in 2023, but the picture for business owners and free-zone companies is more nuanced. This guide separates what is taxed from what is not, and explains the residency rules the UAE introduced in 2022.
United Arab Emirates: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 9%Federal corporate tax on taxable income over AED 375,000 (0% below); 0% for qualifying free-zone persons | PwC Worldwide Tax Summariesas of 2026-03-12 |
| Top personal income tax | 0%No personal income tax | PwC Worldwide Tax Summariesas of 2026-03-12 |
| VAT / GST (standard) | 5%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-03-12 |
| Capital gains | No separate CGTNo tax on personal investment gains; business gains fall under the 9% corporate tax regime (participation exemption available) | PwC Worldwide Tax Summariesas of 2026-03-12 |
| Inheritance / wealth tax | NoNo inheritance or estate tax | PwC Worldwide Tax Summariesas of 2026-03-12 |
When you become a tax resident
The UAE introduced domestic tax-residency rules in 2022 (effective 2023). An individual is generally UAE tax resident if their usual or principal home and centre of financial and personal interests is in the UAE, or if they are physically present for 183 days or more in a 12-month period. A 90-day test can apply to UAE nationals and residents with a permanent home or work there.
Source: PwC Worldwide Tax Summaries - United Arab Emirates (Residence) (as of 2026-06-23).
No personal income tax - so what is taxed?
There is no UAE tax on employment income, personal investment income, or capital gains for individuals, and no inheritance or estate tax. The main taxes that touch residents are 5% VAT on most goods and services, and excise taxes on specific products.
What changed in 2023 is corporate tax: business profits above AED 375,000 are taxed at 9%, with 0% below that threshold. This is a business tax, not a personal one, but it matters to the growing number of expats who run a company or freelance through a licence.
Free zones and the corporate tax
A 'qualifying free-zone person' can still benefit from a 0% rate on qualifying income, subject to meeting the conditions of the free-zone regime. The rules around what counts as qualifying income are detailed, so entrepreneurs choosing between a mainland and a free-zone structure should confirm the treatment for their specific activity rather than assuming a blanket 0%.
Before you move: what to weigh
- Corporate tax (9% over AED 375,000) is separate from the absence of personal income tax - business owners and freelancers on a trade licence are affected even though salaries are not taxed.
- A UAE tax-residency certificate can help claim treaty benefits, but your home country may still tax you if you remain resident there.
- US citizens are taxed by the US on worldwide income regardless of UAE residency; the foreign earned income exclusion and credits then apply.
- Leaving your previous country cleanly (breaking its tax residency) is often the harder part of the move than arriving in the UAE.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to United Arab Emirates.
Does the UAE have income tax for expats?
No. The UAE levies no personal income tax on salaries, wages, or personal investment income, and no inheritance or estate tax. The taxes residents meet are mainly 5% VAT and excise duties. A separate 9% corporate tax applies to business profits above AED 375,000 from June 2023.
Do you pay tax on a salary in Dubai?
No personal income tax is charged on salaries in Dubai or elsewhere in the UAE. Employees keep their gross pay, subject to any home-country tax obligations they retain. Business profits, by contrast, can fall under the 9% federal corporate tax above the AED 375,000 threshold.
When do you become a UAE tax resident?
Generally when your principal home and centre of interests is in the UAE, or after 183 days of physical presence in a 12-month period. A 90-day test can apply to nationals and residents with a permanent home or job there. A residency certificate can support treaty claims.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in United Arab Emirates as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.