- Open from 9am to 6pm
- hello@clemenceaugroup.com
Key points to remember: Dubai maintains a 0 % rate on personal income, inheritance and capital gains, In addition, a corporation tax of 9 % above AED 375,000 has been introduced. This attractive tax framework makes it possible to secure and considerably develop one's assets, provided that one establishes a real tax residence and complies with the new local accounting standards.
Every year, Dubai's tax system attracts thousands of entrepreneurs and professionals in search of a simplified tax framework. Understanding this system in detail is essential if you are to assess whether setting up in the United Arab Emirates is right for your personal situation.
Dubai's tax system is based on three pillars: no personal income tax, a 9% corporate tax introduced in 2023, and a 5% VAT. This architecture differs fundamentally from traditional European tax models based on progressive income tax.
This unbiased guide details all aspects of taxation in Dubai in 2026: existing and non-existent taxes, conditions of eligibility for the various regimes, reporting obligations and legal optimisation strategies. The aim is to provide you with factual and comprehensive information to help you make the right decisions.
Whether you are an expatriate employee, an entrepreneur setting up a company or a property investor, this tax overview will help you to assess objectively whether the UAE's tax framework matches your personal and professional objectives.
The United Arab Emirates' tax system is fundamentally different from most Western countries in that it is simple and attractive to taxpayers. Unlike France or other European nations where taxation is progressive and multi-layered, Dubai adopts a minimalist approach that has earned it a reputation as a popular destination for expatriates and entrepreneurs.
The system is based on three main pillars: 0% on personal income, a 9% corporate tax and 5% VAT. This model attracts capital while respecting international standards.
Beware of the myth that everything is free. Although direct taxation is minimal, indirect taxes and administrative costs do exist. You need to be aware of these costs in order to avoid unpleasant financial surprises.
| Type of tax | Does it exist? | Rates / Details |
|---|---|---|
| Income tax | ❌ NO | 0% for individuals |
| Social security charges | ❌ NO | No contributions |
| Corporate tax (companies) | ✅ YES | 9% (thresholds and exemptions) |
| VAT | ✅ YES | 5% on goods and services |
| Wealth tax (IFI) | ❌ NO | No wealth tax (ISF) or tax on wealth (IFI) |
| Inheritance tax | ❌ NO | 0% (free transmission) |
| Gift tax | ❌ NO | 0% |
| Tax on dividends | ❌ NO | 0% for tax residents |
| Tax on rental income | ❌ NO | 0% |
| Capital gains tax | ❌ NO | 0% |
| Capital gains tax | ❌ NO | 0% (equities, crypto, etc.) |
| Council tax | ❌ NO | Does not exist |
| Property tax | ❌ NO | Does not exist |
| Municipal taxes | ⚠️ PARTIAL | Service charges (DEWA, etc.) |
This ultra-simplified tax architecture is not based on direct taxation of citizens and residents, but on other sources of revenue: oil and gas revenues, indirect taxes (VAT), trade licence fees, customs duties, state property revenues and the tourism sector.
This tax philosophy makes Dubai a particularly attractive destination for legal tax optimisation, provided that the rules are clearly understood and the conditions of eligibility for the various tax regimes are scrupulously respected.
This table illustrates brutally the tax gap. At a glance, you'll understand the immediate financial attraction between the two jurisdictions.
| Type of taxation | Dubai (UAE) | France |
|---|---|---|
| Personal income tax | 0% | 0% to 45% (progressive) |
| Corporation tax | 9% (> 375,000 AED) | 25% (standard rate) |
| VAT | 5% (standard rate) | 20% (standard rate) |
| Wealth tax (IFI) | None | Yes (> €1.3M) |
| Estates and bequests | None | Progressive up to 60% |
| Tax on dividends | 0% | Flat tax 30% (PFU) |
| Capital gains tax | 0% | Flat tax 30% (PFU) |
| Social security charges | None | ~22% employee + 45% employer |
The evidence is clear: France taxes labour and capital heavily. In contrast, Dubai is banking on financial freedom. It is the a real lever for enrichment.
This is often what triggers the decision to expatriate. In the Emirates, the’no income tax is a reality, not an empty promise. Whether you're an employee or a senior manager, your payslip won't suffer any tax cuts: salaries, bonuses and bonuses go straight into your pocket.
This logic immediately extends to your personal assets. Dividends received, whether from a local or foreign structure, remain intact. Ditto for your capital gains on the sale of shares or cryptocurrencies : the taxman takes nothing.
Property owners can breathe a sigh of relief too. Your rental income is completely exempt from traditional income tax. Note, however, that a local council tax applies to leases, but it is nothing like the French tax burden.
Don't think that this advantage is automatic when you step foot in the airport. This tax privilege is only available to those who officially establish their tax residence in the United Arab Emirates. It is the compulsory legal foundation for getting off the French tax radar.
Having a visa is not enough to appease the tax authorities in your home country. You need to prove that your life happens here permanent home, major economic interests and real physical presence. It's a question of substance, not just administrative paperwork.
Specifically, you will need to present your Emirates ID and obtain a tax residence certificate with the federal authority to secure your file.
Here's the other side of the coin that many people are unaware of before signing up. Zero tax and zero social security contributions means total absence of a state safety net. Unemployment doesn't exist, and the pay-as-you-go pension scheme is an unknown concept to expatriates here.
Health becomes a a luxury product that you have to finance yourself. The system is efficient but 100% private. Without solid international health insurance, a simple hospitalisation can wipe out your savings in a matter of days.
Add to that the exorbitant international school fees for your children. You have to manage your retirement on your own, by capitalisation. The tax savings you make are not pocket money. finance your own private social security.
If personal taxation is simple, that of companies has undergone a major change. Forget the myth of 0% for all companies.
Since June 2023, the rules of the game have changed: corporate income tax of 9% now applies. This marks the end of the era of generalised zero tax for all commercial structures.
Rest assured, the axe will not fall immediately. This tax only applies to annual net profits in excess of AED 375,000 (around EUR 95,000). Below this critical threshold, the rate remains locked at 0%.
You should also be aware that companies with a turnover of less than AED 3 million can benefit from an exemption (Small Business Relief) until the end of 2026.
Companies established in the Free Zone retain a rare privilege: they can still benefit from a rate of 0%, even above the AED 375,000 threshold. However, this tax advantage is subject to strict accounting rules.
The main condition is to not to trade directly with the local Emirati market (the «Mainland»). This advantage is designed for internationally-oriented businesses.
| Type of company | Rates | Conditions |
|---|---|---|
| Mainland | 9% | Exemption for profits up to AED 375,000 |
| Freezone (qualifying) | 0% | Economic substance required and qualifying income |
| Freezone (non qualifying) | 9% | Taxation of non-qualifying income |
| Foreign companies | 9% | Only in the case of a permanent establishment in the Emirates |
→ To understand everything in detail about corporate tax, thresholds, exemptions and optimisation strategies, consult our expert guide : Dubai corporation tax
Beyond direct taxes, an indirect tax on daily life for all residents and businesses: VAT.
Introduced in 2018, the VAT (Value Added Tax) has changed the tax landscape Dubai. Its standard rate remains set at 5%, a very low level compared with Europe.
This tax applies to the majority of goods and services consumed in the Emirates.
For entrepreneurs, the’registration becomes compulsory as soon as your taxable sales exceed AED 375,000 a year. This implies regular reporting obligations that you cannot ignore, on pain of penalties.
Not everyone is in the same boat. The legislator distinguishes between sectors taxed at 5%, those taxed at 0% (zero-rated) and certain areas that are totally exempt from taxation of this charge.
Don't confuse the two statuses. A rate of 0% allows companies to recover the VAT paid on their purchases, unlike an exemption which blocks this deduction.
In concrete terms, this Dubai tax impacts your purchasing power. Even at 5%, it adds to all day-to-day expenses and must be taken into account in the calculating the cost of living in Dubai.
Let's take a simple numerical example. On a monthly expenditure budget of EUR 5,000 (around AED 20,000), VAT represents 250 EUR per month out of your pocket.
Despite a rate of 5%, the impact on the annual budget still needs to be taken into account in your financial forecasts.
Everything you need to know about VAT in Dubai: detailed rates by sector, exemptions, reporting obligations and optimisation: VAT in Dubai 5% - Full guide
There's more to taking advantage of Dubai's tax system than just moving house. Two legal concepts are at the heart of the system for French expatriates: the tax residence and the bilateral treaty.
Forget the six-month myth. The 183-day criterion exists, but French tax authorities focus on location your family home (spouse, children) and the real centre of your economic interests.
To escape French tax, the break must be indisputable. A simple administrative address or frequent return trips are not enough. This is a minefield that requires a in-depth analysis of tax residence before you leave.
This is where The tax treaty between France and the UAE. This fundamental text serves as the justice of the peace for avoid the same income being taxed twice, which strictly divides the right to tax between the two States.
But don't be too quick to claim victory. Some income, such as that from a property in France, is still taxable in France. Your home in Dubai does not exempt you from all tax ties with France.
Aside from income tax, Dubai's tax appeal lies above all in the total absence of major capital taxes. Unlike Western systems, there is no direct taxation in the United Arab Emirates on the ownership, transfer or enhancement of assets.
Dubai has no equivalent to the real estate wealth tax. There is no annual tax on the ownership of substantial assets, whether real estate or financial. This feature allows tax residents to grow their capital without tax erosion, within a clear legal framework.
The precise rules, comparative figures and special cases are detailed in our guide to wealth tax in Dubai.
Inheritances and gifts are not taxed in the United Arab Emirates. Inheritances are passed on without deductions, which is a major advantage in terms of estate planning and family protection.
But be careful: assets located outside the Emirates may remain subject to local taxation. The full rules are explained in our section on inheritance and gifts in Dubai.
Dividends received by Dubai tax residents are not subject to personal tax. Similarly, capital gains on financial, real estate or digital assets are not taxed.
To understand the exact mechanisms, exceptions and international comparisons, consult our analyses dedicated to dividends and capital gains in Dubai.
Understanding the tax rules is one thing, but knowing how to use them to your advantage is quite another. Many people think that settling in the Emirates is enough to sort everything out, but the way you structure your financial flows changes the situation radically. Let's take a look at how organise your income legally to make the most of the Dubai setting.
The question immediately arises for any entrepreneur: is it better to pay yourself a monthly salary or wait for the dividends? In Dubai, the automatic response is not always the right one and deserves a precise calculation.
It is important to understand that the salary is considered a deductible expense for your company. In practical terms, this means that reduce taxable profit and therefore limit the impact of Corporate Tax 9% on the company's profits. Dividends, on the other hand, are paid out of net profit, i.e. after tax.
The choice you make will therefore depend directly on the volume of your annual profits. Paying yourself a «reasonable» salary is often the first logical step in a career. successful tax optimisation.
For a consultant or freelancer, the the choice of legal structure is crucial for the future. There are several options on the table, each with its own tax and administrative consequences.
You can set up a Free Zone company, perfect for invoicing international customers, or prefer the lightness of a freelance visa which simplifies day-to-day management. If your objective is to invoice local companies in Dubai, then Mainland is the company to choose.
Your final decision must be based on the type of customers you have and whether or not you want to operate directly in the UAE market.
Now let's look at the case of investors, whether in property, stock markets or crypto-assets. The aim is to ensure that your passive income, such as rents or capital gains, fall within the scope of the 0% rate.
For rental property in Dubai, the taxation is clear and advantageous. In the case of a stock market portfolio or digital assets, it is often much wiser to hold them in your own name as a UAE tax resident to avoid any unnecessary tax friction.
The creation of a holding company can, however, become an essential part of a company's strategy. the right option for managing assets more complex or diversified.
A holding company is a company whose purpose is to hold shares in other companies, subsidiaries. It is a powerful organisational tool that enables a group of companies to be structured in a coherent way.
In Dubai, a holding company established in the Free Zone can receive dividends from its subsidiaries, whether in the UAE or abroad, completely tax-free. It can then redistribute these sums to its tax-resident shareholder without incurring additional tax.
It is a highly effective structure for centralise revenues and manage your investments while navigating between the Mainland and Free Zone rules.
Theoretical percentages don't pay the bills; the money in the account does. To measure the real gain, compare net salary after tax in France with net salary in Dubai, which is equivalent to gross income. Let's take the classic case of a single person with no children.
On a gross annual salary of €50,000 in France, after charges and tax, you have around €37,000 left in your pocket. In Dubai, the net salary is €50,000. The difference already finances a higher standard of living.
For a gross income of €100,000, the French tax burden reduces the net income to around €65,000. In Dubai, it remains intact at €100,000. The annual gain is considerable and immediate.
The gap widens exponentially as salary increases, a logical consequence of the progressivity of French tax compared with Dubai's tax system. The more you earn, the greater the difference.
For a gross salary of €200,000, the net salary in France is barely €115,000. In Dubai, it's €200,000. Net annual earnings exceed €85,000, That's almost a full second salary.
These figures show why Dubai is so attractive for senior executives, successful entrepreneurs and top sportsmen and women. The absence of Dubai income tax radically changes the ability to save.
Be careful, however, not to make a simplistic or naïve calculation. The tax saving must be weighed against the cost of the investment. higher cost of living in Dubai, These include three key areas: housing, health and education.
A quality health insurance can cost several thousand euros a year. Rent is also a major expense, often payable in one or two annual cheques.
The tax gain remains real, but it finances these private expenses. Calculate carefully the ideal salary for a good life in Dubai.
The theory is done. Let's move on to practical examples so that you can project your own situation.
Take a marketing director earning €150,000 a year. His objective is simple: to maximise his net disposable income at the end of the month. Thanks to his employer, he obtains his work visa and becomes a tax resident in the United Arab Emirates.
Strategy: His salary falls to 100 % in his pocket, net of income tax. For the operation to be profitable, he must negotiate a package including solid health cover and housing assistance to offset local costs.
Here is the typical profile of a creator of an online shop selling exclusively internationally. With sales of €800,000 and profits of €250,000, he is aiming for zero tax. This is the ideal candidate for expatriation.
Strategy: He registered his business in a Free Zone. Since he sells nothing on the local Emirati market, he avoids corporation tax altogether. He then pays himself a salary or dividends, which remain untouched by the tax authorities in his personal capacity.
Imagine a strategy consultant working with companies based in Dubai itself. He anticipates a annual profit of €150,000, 600,000. Its situation requires a specific structure to operate legally.
Strategy: It must set up a Mainland company. Here, the rule changes: its profits will be taxed at 9 % on the portion exceeding AED 375,000. The trick is to pay yourself a salary to automatically reduce this taxable profit.
Let's finish with an annuitant who has invested more than AED 2 million in property. This investment opens the door to the precious Golden Visa for 10 years. Major legal certainty for setting up on a long-term basis.
Strategy: His rental income is tax-exempt, apart from local council tax. This visa gives him a stable residence without being dependent on a boss, guaranteeing a rate of 0 % on all its worldwide revenues.
Finally, a word of warning. Dubai's tax appeal can quickly turn into a nightmare from hell if you make certain classic mistakes. Here are the pitfalls to avoid.
Poorly prepared tax expatriation opens the door to a turnaround. Whether you come from France, of Belgium, of Switzerland or from another country, tax authorities are particularly vigilant when the departure is aimed at an attractive jurisdiction. Don't give them the stick to beat you with.
5 mistakes not to make
1) Thinking that “183 days is enough”.”
This is trap number one. The number of days is just an indicator. In most countries, what really counts is the reality of your life centre family, main home, activity, economic interests, residence habits. If these elements remain attached to your country of origin, your non-resident status can be contested.
2) “Forgetting” to formalise your departure
Burying your head in the sand doesn't work. Preparing for and documenting a tax departure is essential: change of residence, administrative consistency, reporting obligations, updating key information (address, bank, contracts, business). The clearer your file, the fewer grey areas you leave open to scrutiny.
3) Ignore exit tax and rules on unrealised capital gains
Depending on your country, special arrangements may apply if you are leaving with a large portfolio, significant shareholdings or a large number of assets. unrealised capital gains. This point can be verified before the start, not afterwards. Poor anticipation can be very costly.
4) Minimising the importance of documentation
In the event of an inspection, it is up to you to prove that your installation is genuine. Do not keep any tangible evidence of your life in Dubai is a major mistake. Accommodation, visa, presence in the country, actual activity, invoices, banking, travel, insurance: everything needs to be taken into account. coherent and traceable.
5) Believing in “zero total tax”
The myth is a hard one. Yes, there is no personal income tax in Dubai, but there are local rules: corporate tax for companies, depending on the case, VAT, administrative costs, compliance obligations. Neglecting these parameters completely distorts your budget and your business plan.
It is important to remember that this content is a information guide. Under no circumstances does it constitute a tax advice, legal or financial and does not replace the advice of a certified expert.
Every situation is unique. Before making any decisions, it is strongly recommended that you consult specialised professionals who can analyse your situation and provide you with support. in all legality.
Dubai's tax system offers exceptional opportunities, including no income tax and attractive company taxation. However, expatriation cannot be improvised. To turn this theoretical advantage into a secure reality, a rigorous structuring and a serious support remain essential.
Yes, this is true for individuals. If you are a tax resident in the United Arab Emirates, your personal income, whether it be wages, dividends or capital gains, are taxed at 0 %. The State takes nothing from what you earn personally, which is the major attraction of the destination.
However, the fact that there is no direct income tax does not mean that there is no tax at all. total absence of taxation. You will still be subject to indirect taxes on your consumption and, if you are an entrepreneur, your company may have to pay corporation tax on its profits.
The Emirati tax system is based on three main pillars These include VAT of 5 %, which applies to most goods and services, corporation tax of 9 % for net profits in excess of AED 375,000 (around €95,000), and customs duty of 5 % on imports.
In addition, there are a number of specific local taxes, such as council tax on accommodation (included in your DEWA bill) or tourist tax in hotels. On the other hand, there is no wealth tax (IFI), inheritance tax or social security contributions on salaries.
Technically, Dubai is no longer a «tax haven» in the opaque sense of the term, but rather a "tax haven" in the sense of the word. low-tax jurisdiction. The United Arab Emirates has complied with OECD international standards by introducing corporation tax and improving financial transparency, enabling it to avoid blacklisting.
For investors, this means the best of both worlds A highly competitive tax system to optimise income, while operating from a financial centre that is recognised, stable and legitimate in the eyes of banks and international authorities.
Since June 2023, a federal tax of 9 % applied to net profits of companies. However, there is a significant exemption: this tax only applies to profits in excess of AED 375,000 a year. Below this threshold, the rate remains at 0 %, which protects small structures and start-ups.
There are also notable exceptions for companies established in the Free Zone. If they meet certain strict conditions (in particular not trading with the local «Mainland» market), they can continue to benefit from a rate of 0 % on their eligible income.
To be considered a tax resident, it is not enough to have a visa. You must also prove that the centre of your vital interests is in Dubai. This generally implies staying there for more than 183 days a year, having a home (Ejari contract or property) and having a real economic activity on the spot.
It is crucial to structure your departure from France properly in order to prevent the French tax authorities from requalifying your residence. Obtaining a Tax Residency Certificate (TRC) is often necessary to assert your rights and activate the double taxation treaty between France and the UAE.
Yes, although property tax as we know it in France does not exist, local taxes apply. Tenants pay a council tax of 5 % of their annual rent, which is deducted directly from their water and electricity bills. Landlords also pay a service charge for building maintenance.
As far as tourism is concerned, a The «Tourism Dirham» tax is charged per night. in hotels and holiday rentals. Finally, motorists must pay the automatic road tolls (Salik) when travelling on the main roads.
Download the guide and get off to a solid start: tax rules in Dubai, corporate tax, VAT, tax residence, documents to bring and mistakes to avoid.
✨ GUIDE TO UAE TAXATION
Do you have any questions about tax in Dubai?
Click here for our additional articles on tax in Dubai: structuring, tax residency, obligations and points to watch out for.
