Any question about UAE tax residency.
Accountant-authored. Written and published by Mehran Habib, an accountant approved on OpenAccountants. Their licence number (13480) is published on their profile, so you can check it against the register yourself. They are licensed in Saudi Arabia, not United Arab Emirates, and wrote this as a cross-border matter. No second accountant has attested to this version yet. General reference material, not advice on your specific facts; don't file, pay, or take a position on it without a professional reviewing your situation.
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Every figure is drawn from this Tax Guide and cited to its source.
Effective date of Cabinet Decision No. 85 of 2022
Effective 1 March 2023Cabinet Decision No. 85 of 2022
Condition A — day count test
Present in the UAE for 183 days or more in a 12-month periodCabinet Decision No. 85 of 2022
Condition B — day count plus ties test
Present in the UAE for 90 days or more in a 12-month period AND: Is a UAE national, UAE resident, or GCC national, AND Has a permanent place of residence in the UAE, OR has a place of business in the UAE, OR carries on employment or business in the UAECabinet Decision No. 85 of 2022
Condition C — domicile / vital interests test
Has UAE as the primary place of residence and centre of vital interests — considers: family residence, employment, personal activities, financial interestsCabinet Decision No. 85 of 2022
Step 1 — Obtain a UAE residence visa
Employment visa, investor visa, Golden Visa (10-year), or retirement visa
Step 2 — Be physically present
Be physically present in the UAE to meet the day-count conditions
Step 3 — Apply for a Tax Residency Certificate (TRC)
Issued by the Ministry of Finance / FTA. Required for treaty claims.
TRC application requirements
Valid UAE residence visa; UAE ID card (Emirates ID); Proof of physical presence (bank statements, utility bills, entry/exit stamps); Property lease or ownership evidence; Minimum 180 days physical presence (in practice, even if the formal rule is 183)
Corporate tax applicability
Corporate tax (9% on profits above AED 375,000) applies to businesses, not to employed individuals or investment income
UAE visa does not terminate foreign residency
Simply obtaining a UAE residence visa does NOT automatically terminate tax residency in another country. Tax residency is determined by the rules of EACH country involved.
Steps to benefit from UAE zero-tax status
1. Formally cease tax residency in the prior country (file a departure return if required) 2. Satisfy the UAE residency tests above 3. Obtain the UAE TRC if needed for treaty claims
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick Reference
| Field | Value |
|---|---|
| Country | United Arab Emirates |
| Personal income tax | Zero — no individual income tax |
| Capital gains tax | Zero — no CGT for individuals |
| Residency requirement for zero tax | UAE tax residency (or simply no foreign tax obligation) |
| Primary legislation | Cabinet Decision No. 85 of 2022 (tax residency rules) |
| Tax authority | Federal Tax Authority (tax.gov.ae) |
| Tax Residency Certificate | Issued by MoF/FTA — used for treaty purposes |
| Verified by | Pending — UAE tax adviser sign-off required |
Tax implications for UAE tax resident individual
| Tax | Rate |
|---|---|
| Personal income tax | 0% — none |
| Capital gains tax (individuals) | 0% — none |
| Dividends received | 0% — none |
| Interest received | 0% — none |
| Rental income from UAE property | Technically subject to municipal tax/fees (4% in Dubai) but no income tax |
| VAT | 5% on consumption — this is on purchases, not income |
Many people move to Dubai, get a UAE visa, but remain UK/EU/AU tax residents under the rules of their home country because they haven't formally severed ties. They receive no UAE income tax, but remain subject to UK/EU/AU tax on their worldwide income.
Key Visas for Tax Residency
| Visa type | Duration | Key conditions |
|---|---|---|
| Employment visa | 2-3 years (renewable) | Sponsored by UAE employer |
| Investor visa | 2-3 years | Investment in business or property |
| Golden Visa | 10 years | AED 2M property, AED 2M business investment, or specialised talent |
| Freelancer/self-employed | 1-3 years | Via free zone or mainland licence |
| Retiree visa | 5 years | Property ownership or savings/income threshold |
Working paper only. UAE tax residency for treaty purposes requires obtaining a TRC. Ceasing tax residency in another country requires compliance with THAT country's exit rules — not just moving to Dubai.
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Other United Arab Emirates computations in the OpenAccountants Tax Library.