Part II · Jurisdictions · No. 16

United Arab Emirates

A federation of seven emirates with no individual income tax. The 2022 corporate-tax law introduced a 9% federal corporate income tax, preserving free-zone qualifying-income exemptions. Dubai operates one of the world's largest gold trading centers and is a major destination for HNW migration.

Why this jurisdiction matters

The UAE has emerged as a major HNW migration destination since 2020. Combination of no personal income tax, Golden Visa long-term residency, modern infrastructure, and free-zone business framework appeals to high-net-worth individuals. The 2022 Corporate Tax Law (Federal Decree-Law No. 47) introduced a 9% federal corporate tax for financial years starting on or after 1 June 2023, with a 0% rate on qualifying income of Qualifying Free Zone Persons.

The relevant tax regime

• No personal income tax. Individuals pay no income, capital-gains, or inheritance tax under federal law.
• Corporate tax. 9% federal on taxable income above AED 375,000; 0% on qualifying free-zone income. From 1 January 2025, a 15% Domestic Minimum Top-up Tax applies to multinational groups with consolidated revenue of €750 million or more (Federal Decree-Law No. 60 of 2023; Cabinet Decision No. 142 of 2024).
• VAT. 5% standard rate (since 1 January 2018); first supply of investment-grade precious metals (99% purity or more) zero-rated; a reverse-charge mechanism applies to gold and diamond trading between registered businesses.
• Excise tax. On tobacco products, electronic smoking devices and liquids, energy drinks, carbonated and sweetened drinks; not a broad luxury excise.
• No estate or inheritance tax. Succession for Muslims follows Sharia. Non-Muslims can rely on civil-law succession rules (Federal Decree-Law No. 41 of 2022 on Civil Personal Status; Abu Dhabi Law No. 14 of 2021) or register wills with the DIFC Wills Service or the Abu Dhabi courts.
• Property transfer fees. 4% Dubai Land Department fee on freehold property transfers (other emirates set their own fees).

Registration or residency mechanics

Residency via employment visa, freelance visa, or Golden Visa (long-term residency for investors, entrepreneurs, specialized talent, students, retirees). The 10-year real-estate Golden Visa requires property worth at least AED 2 million.

Reporting and disclosure

CRS participant (first exchanges 2018). FATCA Model 1 IGA with the U.S. (in force 19 February 2016). Companies must keep a register of beneficial owners and file it with their mainland or free-zone registrar (Cabinet Resolution No. 109 of 2023). AML compliance was strengthened after FATF grey-listing in March 2022, which ended in February 2024.

The substance question

UAE tax residency for tax treaty purposes generally requires substantive residency. Cabinet Decision No. 85 of 2022 sets out tax-residence tests including 90- and 183-day presence requirements. Substance for corporate-tax exemption in free zones requires qualifying income from qualifying activities.

Recent changes

9% corporate tax (for financial years starting from June 2023). FATF grey list (March 2022) and removal (February 2024); removal from the EU high-risk third-country list followed in 2025. 15% Domestic Minimum Top-up Tax for large multinational groups from 1 January 2025. Status as of October 2026.

Common asset classes parked here

• Bullion — Dubai gold market and DMCC gold trade.
• Thoroughbred horses — Dubai Racing Carnival; major investor presence.
• Dubai freehold real estate — Palm, Downtown, Emirates Hills.
• Private aircraft — DXB FBO infrastructure.
• HNW residency under Golden Visa programs.

Reviewed October 2026