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 effective June 1, 2023, while preserving free-zone qualifying income at 0%.

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 profits above AED 375,000; 0% on qualifying free-zone income.
• VAT. 5% standard rate (since 2018); investment-grade gold zero-rated.
• Excise tax. On tobacco, energy drinks, sweetened beverages; not a broad luxury excise.
• No estate or inheritance tax. Succession follows Sharia or testator's home-jurisdiction law (depending on registration of will).
• Property transfer fees. 4% Dubai Land Department fee on freehold property transfer.

Registration or residency mechanics

Residency via employment visa, freelance visa, or Golden Visa (long-term residency for investors, entrepreneurs, specialized talent, students, retirees). Real-estate-based Golden Visa requires minimum property value (AED 2 million). Pillar Two GloBE rules apply to in-scope multinational groups.

Reporting and disclosure

CRS participant (since 2018). FATCA Model 1B IGA with the U.S. Beneficial-ownership registration through Ministry of Economy. AML compliance strengthened post-FATF gray-listing and subsequent removal.

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 (effective 2023). FATF gray list (2022) and removal (2024). Pillar Two implementation for large multinationals. Continued AML reform.

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 May 2026