Expat taxes — United Arab Emirates
Tax system for expats
Income tax
0%
Social security
0%
Capital gains
0%
Pure territorial system — no personal income tax of any kind on locally or foreign-sourced income. Tax residency threshold: 90 days/yr with UAE residency permit and established social/economic ties, or 183 days/yr under the standard rule. Corporate tax introduced in 2023 at 9% on profits over AED 375,000. Free zone entities may qualify for 0% corporate tax under specific conditions. USD peg ensures currency stability (AED 3.67/USD since 1997).
Double taxation agreements
UAE has signed over 130 Double Taxation Agreements (DTAs).
France has a DTA with UAE since 1989 — UAE-source income is not taxable in France if tax residence is in UAE.
Belgium, Switzerland, Canada, Netherlands, Germany, Spain and Italy all have active DTAs with UAE.
The UK has a Tax Information Exchange Agreement (TIEA) and a DTA to eliminate double taxation.
Australia has a DTA with UAE — specific rules apply for pension income and dividends.
By nationality
US expats in UAE
- USA taxes all citizens and permanent residents on worldwide income, even if residing in UAE.
- You may benefit from the Foreign Earned Income Exclusion (FEIE) — $126,500 in 2024.
- Since UAE has no comprehensive DTA with the US, foreign tax credit is limited.
- FBAR filing required for UAE bank accounts exceeding $10,000 aggregate.
- FATCA applies — UAE banks report accounts held by US citizens.
UK expats in UAE
- If you break UK tax residency (Statutory Residence Test), no UK tax on UAE income.
- UK-source income (property, pensions) remains taxable in the UK.
- CRS automatic exchange of information applies between UAE and UK.
- Capital gains on UK property remain subject to CGT even after departure.
Australian expats in UAE
- Australia taxes on worldwide income while you remain a tax resident. Break residency to avoid this.
- The Australia-UAE DTA covers dividends, interest and pensions with specific allocation rules.
- Australian superannuation is not taxable in UAE, but withdrawals may be taxed in Australia.
- Medicare levy ceases once you're a non-resident for tax purposes.
French expats in UAE
- France has a DTA with UAE since 1989 — UAE-source income is not taxable in France.
- You must file a French tax return for the year of departure (income from Jan 1 to departure date).
- French-source income (real estate, dividends) remains taxable in France.
- Exit tax applies to latent capital gains on holdings > €800k or > 50% of a company's capital.
Learn more
This information is for guidance only. Tax rules change frequently. Consult a qualified tax advisor before making any decisions.