UAE — Tax Residency

|---| | 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 |

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Section 2 — UAE Tax Residency: The Rules

Cabinet Decision No. 85 of 2022 (effective 1 March 2023) established formal tax residency criteria:

An individual is a UAE tax resident if:

Condition A: Present in the UAE for 183 days or more in a 12-month period, OR

Condition B: 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

Condition C (domicile / vital interests): Has UAE as the primary place of residence and centre of vital interests — considers: family residence, employment, personal activities, financial interests.

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Section 3 — How to Establish UAE Tax Residency in Practice

1. Obtain a UAE residence visa: employment visa, investor visa, Golden Visa (10-year), or retirement visa
2. Be physically present in the UAE to meet the day-count conditions
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)

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Section 4 — What UAE Tax Residency Means

For an individual who is a UAE tax resident:

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

Important: Corporate tax (9% on profits above AED 375,000) applies to businesses, not to employed individuals or investment income.

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Section 5 — UAE Tax Residency and Other Countries

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.

To actually benefit from UAE's 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

Common issue: 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.

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Section 6 — 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

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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.