Rules as of 12 November 2026
The short answer
Dubai has no personal income tax. The UAE government says plainly: "The UAE does not levy income tax on individuals." Your salary, your dividends and your savings interest are not taxed here. Companies are different: they pay 9% corporate tax on profit above AED 375,000, and most goods and services carry 5% VAT. Your home country may still tax you until you really leave it.
What you pay in Dubai, and what you don't
| Tax | Do you pay it in Dubai? | The rule |
|---|---|---|
| Income tax on your salary | No | The UAE does not tax individuals' income (u.ae) |
| Tax on dividends you take from your company | No, for you as a person | Your company pays corporate tax on its profit, not you on the dividend |
| Corporate tax (companies) | Yes, above a threshold | 0% on taxable income up to AED 375,000, 9% above it |
| Corporate tax (freelancers and sole traders) | Only above AED 1 million turnover | A person must register once business turnover passes AED 1,000,000 in a calendar year |
| VAT | Yes, on most purchases | 5%. Businesses must register above AED 375,000 of taxable supplies in 12 months |
| Excise tax | On some products | Tobacco, energy drinks, sugary drinks and similar goods "harmful to health" (u.ae) |
| Housing fee (Dubai) | Yes, if you rent or own a home | 5% of the yearly rent, paid in 12 parts on your DEWA bill |
| Inheritance tax | No | There is no inheritance tax, but what happens to your assets still depends on a will. See wills in Dubai |
| Property tax | No yearly property tax | Buying a home has transfer and registration fees. For buying property, see our partner FLX Property |
So "is Dubai tax-free?" has a two-part answer. For you as a person, mostly yes. For your company and your shopping, no.
Do you pay income tax in Dubai?
No. If you live in Dubai on a residence visa and earn a salary, the UAE takes nothing from it. There is no tax return to file as an employee. The same goes for your bank interest, your investments and rent you receive from a property you own as a private person.
The one exception is business income. If you trade as an individual (a freelancer or sole trader, not through a company) and your business turnover goes above AED 1 million in a calendar year, you must register for corporate tax. Salaries, personal investment income and rent from property you hold privately do not count toward that AED 1 million.
Corporate tax: what companies pay
Every UAE company, including every Free Zone company, must register for corporate tax and file a yearly return, even when it owes nothing.
- 0% on taxable income up to AED 375,000 a year.
- 9% on taxable income above AED 375,000.
- A Qualifying Free Zone Person can pay 0% on qualifying income, if it meets every condition (substance in the zone, audited accounts, a cap on non-qualifying income and more).
- Small Business Relief: a company with revenue of AED 3 million or less in the tax period, and in every earlier period, can choose to be treated as having no taxable income. Ministerial Decision 131 of 2026 extended this relief to tax periods ending on or before 31 December 2029. You still register and file.
The return is due 9 months after the end of your financial year. Missing registration costs an AED 10,000 penalty. More detail: UAE corporate tax.
VAT: the tax you pay when you buy
VAT is 5% and sits on most of what you buy, from groceries in a supermarket to restaurant bills and electronics. Some items are zero-rated or exempt (for example, many residential rents).
If you run a business, you must register for VAT once your taxable supplies pass AED 375,000 in the last 12 months, or are expected to in the next 30 days. You may register from AED 187,500. See VAT registration in the UAE.
Planning a move and a company? In a free 30-minute Zoom call we show you what tax your company would pay in Dubai, how to set it up, and what to ask your home tax adviser before you leave. Book my free 30-minute call · WhatsApp us
The catch: your home country can still tax you
Dubai not taxing you does not stop your home country from taxing you. Most countries tax you on worldwide income as long as you are still their tax resident. Becoming non-resident there usually means a real move: a home in Dubai, a residence visa, most of your days spent here, and fewer ties left behind. The United States is the big exception: it taxes its citizens wherever they live.
| If you are moving from | The home-country rule to check first | Our guide |
|---|---|---|
| United Kingdom | HMRC's statutory residence test, split year, the 5-year temporary non-residence rule | Moving to Dubai from the UK |
| Ireland | Fewer than 183 days a year (280 over two years), and 3 more years of "ordinary residence" | Moving to Dubai from Ireland |
| Australia | The domicile test and a permanent place of abode outside Australia; CGT on leaving | Moving to Dubai from Australia |
| Canada | Departure tax: a deemed sale of most of your assets on the day you emigrate | Canada departure tax |
| United States | Citizens file with the IRS wherever they live; the foreign earned income exclusion | Moving to Dubai from the US |
| India | Day-count rules for NRI status; the India–UAE tax treaty | Moving to Dubai from India |
| South Africa | Ceasing tax residence with SARS; capital gains tax on leaving | Moving to Dubai from South Africa |
| New Zealand | 325 days away and no "permanent place of abode" in New Zealand | Moving to Dubai from New Zealand |
| Italy | AIRE registration and the presumption of Italian residence | Trasferirsi a Dubai dall'Italia |
We set up and run your UAE side. For the rules of the country you are leaving, check with a tax adviser in your home country before you go.
How to prove you are a UAE tax resident
Your home tax office, or a bank, may ask you to prove you live in the UAE for tax. The proof is a Tax Residency Certificate from the Federal Tax Authority. As a person you usually need 183 days or more in the UAE in a 12-month period, or at least 90 days with a residence visa plus a permanent home or a job or business here. See UAE tax residency certificate.
The order that works for most people:
- Get a residence visa (job, your own company, Golden Visa or another route). See UAE residence visas compared.
- Get your Emirates ID and a home with a registered tenancy contract (Ejari in Dubai).
- Open a personal bank account here.
- Spend most of your year in the UAE and keep records of it.
- Apply for the Tax Residency Certificate once you qualify.
Why people still call Dubai "tax-free"
Because for most employees it is: the salary that lands in your account is the salary on your contract. For business owners, a small company under the thresholds often pays little or no corporate tax, but it still has to register, keep books and file. The tax is low, but the paperwork is real. If you set up a company here, budget for proper bookkeeping from the first invoice. See accounting services in Dubai.
Frequently asked questions
Is Dubai really tax-free?
For individuals, mostly yes: the UAE does not tax personal income, so salaries, dividends and savings are not taxed. Companies pay 9% corporate tax on profit above AED 375,000, and there is 5% VAT on most purchases.
Do I pay tax on my salary in Dubai?
No. There is no income tax on salaries in the UAE and no personal tax return for employees. Your home country may still tax you if you remain its tax resident.
What is the tax rate in Dubai for companies?
0% on taxable income up to AED 375,000 and 9% above it. A Qualifying Free Zone Person can pay 0% on qualifying income if it meets all the conditions. Every company must register and file a return.
Do I pay tax in my home country if I live in Dubai?
It depends on your home country. Most tax you only while you are their tax resident, so a real move matters. The United States taxes its citizens wherever they live. Check with a tax adviser in your home country before you leave.
Is there VAT in Dubai?
Yes, 5% on most goods and services. A business must register for VAT once its taxable supplies pass AED 375,000 in 12 months, and may register from AED 187,500.
Is there inheritance tax in Dubai?
No. But without a registered will, your assets in the UAE may not pass the way you want. Non-Muslims can register a will in Dubai.
General information based on official sources, reviewed by the 800 Business team, as of 12 November 2026. It is not tax advice. For the country you are leaving, speak to a tax adviser there.
Talk it through with us
In a free 30-minute Zoom call we look at your plans: job or company, family, timing. We tell you what you would pay in the UAE, how to set up, and which questions to take to your home tax adviser.
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Sources
Checked on 12 November 2026.
- u.ae, Taxation: "The UAE does not levy income tax on individuals"; 5% VAT; excise tax on goods harmful to health; corporate tax on business profit
- Federal Tax Authority, tax.gov.ae: corporate tax 0% up to AED 375,000 and 9% above; natural persons register above AED 1,000,000 turnover; VAT 5%, registration at AED 375,000 (voluntary from AED 187,500); AED 10,000 late registration penalty (Cabinet Decision 75 of 2023, as amended)
- Ministry of Finance, Small Business Relief extended to 31 December 2029 (7 August 2026), Ministerial Decision 131 of 2026: AED 3 million revenue test
- DEWA, VAT and housing fee: Dubai Municipality housing fee of 5% of the annual rent, in 12 instalments
- Federal Tax Authority, Tax Residency Certificate service: 183-day and 90-day tests for individuals (see our tax residency certificate guide)
Next step: Business setup in Dubai