Question 1

Does the UAE have income tax?

Accepted Answer

No, the United Arab Emirates has 0% personal income tax. Individuals in the UAE do not pay income tax on their salaries, wages, dividends, capital gains, or foreign income. This makes the UAE one of the most tax-friendly destinations in the world for expats and high earners.

Question 2

What taxes do you pay in Dubai?

Accepted Answer

Dubai and the UAE have no personal income tax. However, there is a 5% Value Added Tax (VAT) on most goods and services, and a 9% corporate tax for businesses earning above AED 375,000. There's also a tourism tax (dirham fee) on hotel stays and municipality fees on rental properties.

Question 3

How do I become a UAE tax resident?

Accepted Answer

To qualify as a UAE tax resident, you need to: 1) Secure a UAE Residence Visa (through employment, business ownership, or property investment), and 2) Reside in the UAE for at least 183 days per year. The UAE also offers digital nomad visas allowing stays up to one year for remote workers.

Question 4

Is UAE good for expats tax-wise?

Accepted Answer

Yes, the UAE is excellent for expats tax-wise. With 0% personal income tax, no capital gains tax, and no inheritance tax, expats can keep 100% of their employment income. However, US citizens must still file US taxes (but can use the Foreign Earned Income Exclusion up to $130,000 in 2025).

UAE Tax Calculator 2025

UAE Tax Overview - Keep 100% of Your Income

Personal Income Tax

Capital Gains Tax

Social Security (Expats)

VAT

Why the UAE is Tax-Free for Individuals

Important Notes for Expats