Tax Residency in United Arab Emirates

Section 1 — Quick Reference

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

Section 2 — UAE Tax Residency: The Rules

• Effective date of Cabinet Decision No. 85 of 2022 — Effective 1 March 2023 (Cabinet Decision No. 85 of 2022)
• Condition A — day count test — Present in the UAE for 183 days or more in a 12-month period (Cabinet 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 UAE (Cabinet 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 interests (Cabinet Decision No. 85 of 2022)

Section 3 — How to Establish UAE Tax Residency in Practice

• 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)

Section 4 — What UAE Tax Residency Means

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

• Corporate tax applicability — Corporate tax (9% on profits above AED 375,000) applies to businesses, not to employed individuals or investment income

Section 5 — UAE Tax Residency and Other Countries

• 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

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.

Section 6 — Key Visas for Tax Residency

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

Section 7 — Sources

• UAE Cabinet Decision No. 85 of 2022 on determination of tax residency
• Federal Tax Authority: tax.gov.ae
• Ministry of Finance: mof.gov.ae

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.