UAE Tax Guide for Expats 2026 — 0% Income Tax, Corporate Tax and VAT Explained

Sources: UAE Federal Tax Authority (tax.gov.ae) · UAE Ministry of Finance

The UAE has no personal income tax. This applies to salary, employment benefits, investment income, dividends, rental income and capital gains for individuals. There is no tax on cryptocurrency gains for individuals. There is no wealth tax, no inheritance tax and no estate duty in the UAE.

There is no concept of "UAE tax residency" in the traditional sense for individuals — the UAE does not tax individuals regardless of how long they spend there.

A federal corporate income tax of 9% was introduced for financial years beginning on or after 1 June 2023. It applies to businesses with taxable profits exceeding AED 375,000. A 0% rate applies to profits up to AED 375,000 (approximately £80,000).

Who it affects: UAE-registered companies and branches. Individual employees are not affected. Freelancers working under professional licences should seek specific advice on how the corporate tax interacts with their licence structure.

Free zones: Qualifying Free Zone companies meeting specific conditions may benefit from a 0% corporate tax rate. The conditions are specific — specialist legal/tax advice is required.

Source: Federal Tax Authority — Corporate Tax

A 5% VAT was introduced in January 2018. It applies to most goods and services. Certain items are zero-rated (food staples, healthcare, education, international transport) or exempt (residential property, local passenger transport). As a resident, you pay VAT on most day-to-day spending, but the rate is low by international standards.

Establishing UAE residency can support UK non-resident status under the Statutory Residence Test. A UK-UAE double tax treaty exists but covers a limited range of income types. UK rental income, pensions and property gains remain taxable in the UK regardless of UAE residency. See the UK expat tax guide →