United Arab Emirates
Top Income Tax
0%
Marginal rate
Corporate Tax
9%
Standard rate
VAT / Sales Tax
5%
Standard rate
Capital Gains
0%
Standard rate
Overview
The UAE offers zero personal income tax, making it one of the world's most tax-friendly jurisdictions. The introduction of 9% corporate tax in 2023 brought some change, but free zone benefits persist. Dubai and Abu Dhabi are global business hubs with excellent infrastructure.
Income Tax Brackets
| Income Range (AED) | Tax Rate |
|---|---|
| 0+ | 0% |
No personal income tax in the UAE.
Corporate Tax
Standard Rate
9%
9% on taxable income exceeding AED 375,000. 0% below threshold. Free zone companies may qualify for 0% on qualifying income.
VAT / Sales Tax
Standard Rate
5%
Reduced Rates
0%
5% standard rate. 0% on exports, international transport, precious metals.
Capital Gains Tax
Standard Rate
0%
No capital gains tax for individuals or businesses (outside of corporate tax scope).
Social Security Contributions
Employee
5%
Employer
12.5%
Self-Employed
0%
Only applies to UAE/GCC nationals. Expats are exempt from social security.
Special Tax Regimes
Free Zones
Numerous free zones offering 0% corporate tax on qualifying income, 100% foreign ownership, and no personal income tax.
Eligibility: Must establish entity within a designated free zone. Qualifying income criteria apply under new CT law.
Golden Visa
Long-term residency visa (5 or 10 years) for investors, entrepreneurs, specialized talents, and outstanding students.
Eligibility: Various categories: investors (AED 2M+ property), entrepreneurs, professionals with specialized degrees.
Digital Nomad Visa
Virtual Working Programme: 1-year renewable visa. Must earn at least USD 3,500/month. Available in Dubai and Abu Dhabi.
Pros & Cons
Pros
- Zero personal income tax
- Zero capital gains tax
- Free zone benefits
- World-class infrastructure
- Golden Visa program
- Digital nomad visa
Cons
- 9% corporate tax introduced
- High cost of living in Dubai
- Hot climate
- Cultural adjustments
- Expensive real estate
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for United Arab Emirates is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- United Arab Emirates government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.