Last Updated: April 2026
The UAE is one of the world's most popular destinations for high-income professionals and entrepreneurs precisely because it has no personal income tax. Leaving the UAE is therefore primarily an administrative and financial planning exercise, not a tax planning exercise. The end-of-service gratuity (a legally mandated lump-sum payment) is one of the most significant financial events on departure โ the DIFC's DEWS system has modernised this for DIFC workers. For UAE nationals covered by the GPSSA (General Pension and Social Security Authority), the pension implications are also significant.
UAE-to-USA migration is significant โ professionals from tech, finance, and energy sectors, and family-based immigration. Key UAE-US planning points:
No UAE income tax โ US worldwide tax begins on US residency: UAE is a zero-income-tax jurisdiction. Once you become a US tax resident (green card, substantial presence), the USA taxes worldwide income. For UAE residents with significant investment income: the transition from UAE (zero tax) to USA (up to 37% federal + state tax) is dramatic. Plan investment realisations, bonus timing, and DEWS/gratuity receipt relative to US tax residency establishment.
End-of-service gratuity and US tax: UAE gratuity received while still a UAE tax resident (before US green card / substantial presence test) is not subject to US tax. After becoming a US tax person: gratuity is ordinary income. Timing the employment termination and gratuity receipt is one of the highest-value planning points for UAE-to-USA moves.
UAE-USA DTA: The UAE and the USA do not have an income tax treaty as of 2026. No DTA means: no reduced withholding rates and no treaty-based protections against double taxation. UAE residents who move to the USA and receive UAE-source income must claim FTC on Form 1116 (UAE has no income tax, so there is typically nothing to credit โ double taxation is not normally an issue since UAE taxes nothing).
FBAR for UAE accounts: UAE bank accounts over $10,000 must be reported on FinCEN Form 114 annually as a US resident.
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Get International Health Cover from Day One โVisa cancellation timing: (1) Cancel your UAE residency visa as close as possible to your actual final departure from the UAE. (2) A 30-day grace period begins from the visa cancellation date โ you can remain in the UAE during this period. (3) Do NOT cancel the visa before you've completed all financial transactions: close or transfer bank accounts, receive your gratuity/DEWS, settle any UAE credit card balances, and collect any deposits (tenancy deposit, utility deposits). (4) For employer-sponsored visa holders: your employer typically initiates the visa cancellation when your employment ends. Ensure your employer does not cancel the visa before your final working day. Emirates ID: your Emirates ID is linked to your residency visa โ it becomes invalid on visa cancellation. Return it to ICA or the relevant authority. UAE TRC: if you need a UAE Tax Residency Certificate for the current year, apply for the TRC before cancelling your visa. The TRC application requires a valid UAE residency visa and proof of 183 days in the UAE. After visa cancellation: you can visit the UAE as a tourist (most nationalities get visa-on-arrival or free e-visa for 30โ90 days) โ but you will not be a UAE resident.
UAE end-of-service gratuity calculation (mainland UAE, Federal Labour Law): Total gratuity = (monthly basic salary รท 30) ร days entitlement. Days entitlement by service length and termination type: Resignation: 21 days ร years for first 5 years + 30 days ร years for years 5+; capped at 2 years' salary. Termination without cause: same formula. Termination with cause: may reduce entitlement depending on circumstances. Example: 7 years of service, AED 20,000 monthly basic salary. Years 1โ5: 5 ร 21 days = 105 days. Years 6โ7: 2 ร 30 days = 60 days. Total: 165 days ร (20,000 รท 30) = AED 110,000 gratuity. DEWS (DIFC): different calculation โ your DEWS account balance is simply whatever was contributed (5.83%/8.33% monthly) plus investment returns. Timing of payment: mainland UAE: employer must pay gratuity within 14 days of termination under Federal Law 33/2021. DEWS: Equiom processes the withdrawal request from the DEWS account โ typically 3โ5 business days. If your employer delays payment: file a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE) via the Tasheel service centres or online.
Possibly โ but it depends on your bank and their non-resident policy. UAE banks require a valid residency visa for new account openings. For existing accounts: many UAE banks will allow non-residents to maintain accounts in a reduced 'non-resident' status, but may impose fees or restrictions. Common outcomes on visa cancellation: (1) Major banks (FAB, ENBD, ADCB): typically require you to close the account or maintain a minimum balance to avoid monthly fees as a non-resident. (2) Some banks convert accounts to non-resident status allowing limited banking. (3) All banks require an up-to-date address and contact information โ update your records before departing. Practical advice: before cancelling your UAE visa: (a) Transfer the bulk of your funds abroad via Wise or your UAE bank's international wire service. (b) Settle all direct debits and standing orders. (c) Keep a small balance (AED 5,000โ10,000) to cover any final charges or income that arrives after departure. (d) Advise your bank of your departure and obtain their non-resident policy in writing. UAE accounts and CRS: UAE participates in CRS from 2018 onwards โ UAE bank account information is shared with your new country of residence's tax authority. Ensure your UAE bank has your correct overseas address.
The UAE Tax Residency Certificate (TRC โ also called a Tax Domicile Certificate) is a formal document issued by the UAE Ministry of Finance (MOF) certifying that you were a UAE tax resident during a specified period. Who needs a TRC: (1) Individuals who were UAE residents and want to claim relief under a UAE DTA with their home country โ for example, an Indian national who was UAE-resident claiming reduced Indian withholding under the India-UAE DTA. (2) Professionals who used UAE tax residency as a planning base and need to demonstrate UAE residency to their home country's tax authority. (3) Less relevant for US citizens (USA taxes worldwide income regardless) or nationals of countries with no DTA with UAE. How to apply: MOF Smart Services portal (mof.gov.ae). Requirements: valid UAE residency visa; Emirates ID; proof of 183 days' presence in UAE in the relevant period (entry/exit records from ICA); tenancy contract or property ownership certificate in UAE; bank statements showing UAE activity. Cost: AED 2,000 for individuals (approximately USD 545). Timeline: approximately 5โ7 working days. Validity: typically 1 year (the calendar year of application). Apply before cancelling your UAE residency visa โ the application requires a valid visa. If you have already left: apply via a registered UAE professional services agent if needed.