Due to its favourable tax regime, the UAE attracts expats from around the world seeking to minimise personal income tax and structure their finances more efficiently. But how long do you have to live in Dubai for a tax-free status, and what does that status actually require?
While Dubai does not levy personal income tax, your overall tax position will depend on factors such as your country of residence or citizenship, your time spent in the UAE, and whether you qualify as a UAE tax resident.
This guide explains who is eligible for tax-free treatment in the UAE, how long you must reside in Dubai to secure tax residency, and which visa options support this status.
What You Will Learn
- How long do you have to live in Dubai to be tax-free?
- If you work in Dubai, do you pay tax?
- How can you obtain tax residency in the UAE?
How Long Do You Have To Live in Dubai To Avoid Tax?
The UAE imposes no personal income tax on salaries, rental income, inheritance, or investment income. However, indirect taxes such as VAT (5 %) and excise taxes apply. Expats who live and work in Dubai can take advantage of personal income tax exemption from the moment they relocate.
While the UAE does not impose personal income tax, your global tax obligations are determined by the tax residency rules of your home country.
Most jurisdictions, including the US, the UK, Australia, and most EU countries, tax their residents (or, in the case of the US, citizens) on worldwide income.
As a result, living in Dubai does not automatically reduce your tax liability if your home country continues to tax you based on residency or citizenship status.
How To Become a Tax Resident in Dubai?
To obtain tax residency in Dubai, you need to satisfy one of the following conditions:
- Be physically present in the UAE for at least 183 days per year.
- Have a primary residence, as well as the centre of your personal and financial interests, in the UAE.
- Spend at least 90 days in a 12-month period, hold a valid UAE residence visa (or have UAE or GCC nationality), and either maintain a permanent place of residence in the UAE or be employed or run a business there.
The third criterion only applies to UAE nationals, nationals of any Gulf Cooperation Council (GCC) member state, or those who hold a valid residence permit in the UAE.
An experienced financial adviser, such as those at Titan Wealth International, can assist you in determining your tax residency status and creating a strategy that guarantees tax efficiency while maintaining full compliance with the tax regulations of both your home country and the UAE.
Do You Pay Tax if You Work in Dubai?
You don’t have to pay UAE tax if you work in Dubai, regardless of residency. However, if you’re a UAE non resident, your employment income may be subject to taxation in your country of residence, depending on its tax laws.
If you operate a business in Dubai, your business income will be subject to corporate tax, provided specific conditions are met:
- Corporate tax at a rate of 9 % applies to net business profits exceeding AED 375,000 per year. Some small businesses, qualifying free zone entities, and sole proprietors under a threshold may be exempt.
- Your company operates in oil and gas production: A progressive rate of up to 55% applies.
- Your business functions as a branch of a foreign bank: A flat 20% tax rate is charged.
Under the corporate tax law in the UAE, the following entities are regarded as UAE tax residents:
- UAE-based companies and their branches
- Foreign enterprises that are effectively managed in the UAE
- Individuals who operate a business or conduct business activities in the UAE
Non-resident businesses can also be taxed in the UAE if they have a permanent establishment (PE) in the Emirates, or if they receive UAE-sourced income from selling goods and shares.
However, if your country of residence has a double taxation agreement with the UAE and your business is subject to corporate tax in both jurisdictions, you can avoid being taxed twice on the same income.
How Can You Become a Tax Resident in Dubai?
Obtaining tax residency in the UAE will allow you to enjoy tax-free living in Dubai and reduce your overall tax liability. You can become a UAE tax resident by leveraging one of the following visas:
- Work visa
- Virtual work visa
- Golden visa
Work Visa
To obtain a work visa and residence permit in the UAE, you must be sponsored by a UAE-based employer. These visas are available to expats employed in the private or government sector and are typically valid for up to two years, after which they can be renewed.
If you don’t have an employment contract in the UAE, you can apply for the Green visa, which allows you to sponsor yourself for up to five years. This visa is a viable option for expats who meet the conditions outlined below:
| Green Visa Criteria | Application Requirements |
|---|---|
| You are a freelancer or self-employed | You must have a bachelor’s degree or a specialised diploma, obtain a permit from the Ministry of Human Resources and Emiratisation, and prove that your annual income for the previous two years was at least AED 360,000. |
| You are regarded as a skilled employee in the UAE | You must provide a valid employment contract, hold a bachelor’s degree or higher, earn AED 15,000 or more per month, and be employed in a specific field such as science, technology, writing, sales, or agriculture. |
Remote Working Visa
If you work remotely, the UAE offers a remote working visa, allowing you to live in the country for a year. Previously, Dubai offered a virtual working programme, which merged with the remote working visa in 2022.
To qualify for this visa, you must:
- Prove that you’re employed in a company based outside of the UAE
- Earn a monthly income of at least $3,500 (or its equivalent in another currency)
- Have health insurance coverage for the period you will spend in the UAE
Golden Visa
The UAE’s Golden visa offers 5- or 10-year residency to real estate investors, public asset investors, entrepreneurs, and individuals in key professional sectors.
While expats considered specialised talent in the UAE may be eligible based on their expertise, you can also secure a Golden visa if you meet one of the following criteria:
| Golden Visa Criteria | Golden Visa Requirements |
|---|---|
| You are a real estate investor | You can acquire a renewable five-year visa if you own a property or properties worth at least AED 2 million or purchase a property using a loan from a local bank. |
| You invest in public assets | A ten-year visa is available to investors, owners, or partners who deposit at least AED 2 million in a UAE investment fund or hold a valid commercial or industrial license with a minimum investor capital of AED 2 million. Note that your deposit can’t be a loan. You must also prove that you pay AED 250,000 or more in annual taxes. |
| You are an entrepreneur | Entrepreneurs can receive a five-year visa if they own a business involved in technology or future industries like renewable energy and AI, valued at AED 7 million or more. |
You must also provide proof of comprehensive health insurance that covers you and your family (if applicable).
The Golden visa, valid for five or ten years, is also available to pioneers of humanitarian work. This includes those who have contributed a minimum of AED 2 million to humanitarian work, as well as those employed in regional, international, or civil humanitarian organisations for at least five years or rewarded by such organisations.
How Do You Obtain a Tax Residency Certificate in Dubai?
A tax residency certificate (TRC) is a legal document that verifies residency in a particular country. Acquiring a TRC in Dubai enables you to claim the tax reliefs outlined in the UAE’s double tax treaty with your home jurisdiction (if applicable) and benefit from Dubai’s favourable tax regime.
Individual Residency Certificate Requirements
Expats must have been physically present in the UAE for at least 183 days in the relevant calendar year to qualify for a Tax Residency Certificate for treaty purposes. To secure the certificate, you must submit the application form to the UAE’s Ministry of Finance, along with the following documentation:
- A valid passport
- Your UAE ID and residence visa
- An immigration report
- Proof of income in the UAE in the form of a salary slip
- Utility bills or a rental contract to prove your residence in the UAE
- Bank statements in the UAE for the last six months
You can apply for the TRC online through the UAE Federal Tax Authority portal and pay the applicable submission and processing fees.
Company Residency Certificate Requirements
The TRC application for businesses is similar, but requires different documentation, including:
- A business’s trade license
- The business representative’s valid passport, visa, UAE ID, and immigration report
- The UAE bank statements from the previous six months
- Verified financial statements and tax declarations
- Proof of physical office space
Newly incorporated companies must operate for at least 12 months to meet the requirements for a TRC. It typically takes two to three weeks to receive the TRC.
If you supply incorrect information or fail to provide all the necessary documentation, your TRC application may be rejected. Working with a tax consultant will ensure you meet the TRC requirements and navigate the application process smoothly.
Complimentary UAE Tax Residency Consultation
Establishing tax residency in Dubai can unlock significant benefits—but without the correct visa, documentation, or international planning, you may remain liable for taxation in your home country. In a complimentary consultation with Titan Wealth International, you will:
- Determine whether you meet the UAE’s tax residency criteria and understand the 183-day and centre-of-interest tests.
- Receive an assessment of how your residency status affects exposure to UK, US, or other home-country taxes.
- Gain a bespoke strategy to leverage applicable double tax treaties, structure your income efficiently, and minimise global tax risk.
Key Takeaway
While the UAE does not impose personal income tax on either residents or non-residents, your global tax obligations are ultimately determined by the tax residency rules of your home country—and whether a double taxation agreement (DTA) exists with the UAE. As such, living in Dubai does not automatically exempt you from tax elsewhere.
This guide has explained how to establish tax residency in the UAE, the 183-day and alternative residency criteria, and the visa routes that support long-term residence—including employment, freelance, remote work, and Golden Visa options. It has also outlined the process for securing a Tax Residency Certificate (TRC), which is essential for accessing treaty relief and avoiding double taxation.
Professional advice is strongly recommended to assess your residency position, meet compliance obligations in both jurisdictions, and implement an efficient cross-border tax strategy.
Our advisers at Titan Wealth International can provide expert guidance on your tax residency status, domicile planning, and international compliance. We help expats structure their wealth efficiently, navigate double tax treaties, and implement strategies to reduce tax exposure while preserving long-term financial security.
