How To Switch From UK Tax Resident to Dubai Tax Resident: Requirements, Steps, and Implications

This guide will explain how to switch from a UK tax resident to a Dubai tax resident. It will provide a detailed overview of the eligibility criteria, the procedural steps involved, and the key tax implications associated with changing your tax residency status.

What Requirements Do You Need To Meet To Become a Dubai Tax Resident?

With the enactment of Cabinet Resolution No. (85) of 2022, effective 1 March 2023, the UAE introduced a formal framework to determine individual tax residency. To qualify as a UAE tax resident, you must meet at least one of the following three criteria:

1. 183 Day Test
2. 90-Day + Connection Test
3. Primary Residence and Financial Interests Test

183-Day Test

You are considered a UAE tax resident if you were physically present in the UAE for 183 days or more during any consecutive 12-month period.

This test is based purely on the number of days spent in the country, regardless of visa type or employment status.

90-Day + Connection Test

You may qualify for UAE tax residency if you were physically present in the UAE for 90 days or more during a 12-month period and meet both of the following conditions:

• You are either:
  • A UAE national,
  • A national of a Gulf Cooperation Council (GCC) member state, or
  • A holder of a valid UAE residence permit (e.g. employment visa, investor visa, Golden Visa); and,
• You have at least one of the following connections to the UAE:
  • A permanent place of residence in the UAE.
  • Active employment in the UAE.
  • Ownership or operation of a business in the UAE.

Primary Residence and Financial Interests

Even if you do not meet the day-count thresholds, you may still be deemed a UAE tax resident if the UAE is your primary place of residence and the centre of your financial and personal interests.

Under this test, physical presence is not determinative. What matters is the substance of your life being centred in the UAE.

What Are the Steps for Switching Your UK Tax Residency to Dubai Tax Residency?

Switching your UK tax residency to Dubai, or more precisely, UAE tax residency, requires a comprehensive understanding of applicable regulations in both the UK and the UAE. This ensures compliance with both countries’ laws and helps avoid potential penalties or unnecessary tax liabilities.

The process of switching residency involves multiple steps:

1. Understanding UK tax residency rules
2. Establishing residence in Dubai
3. Obtaining an Emirates ID
4. Acquiring the tax residency certificate
5. Inform HMRC you’re no longer a UK tax resident

Understand UK Tax Residency Rules

Living abroad doesn’t automatically change your status to a UK non-resident for tax purposes. To switch your tax residency to the UAE, you must first determine whether you meet the UK’s criteria for being considered a resident or non-resident.

The UK’s Statutory Residence Test (SRT) helps you determine your residence status for a tax year (which lasts from 6 April to 5 April the following year). The test focuses on the amount of time you spend and work in the UK and the connections you have with the UK.

The SRT consists of several parts, including:

1. Automatic UK tests
2. Automatic overseas tests
3. Sufficient ties test

Automatic UK Tests

You will be considered a UK tax resident if one of the following conditions applies:

• You spent 183 days or more in the UK in a single tax year.
• You have or have had a home in the UK for the entire or part of the year. There is at least one period of 91 consecutive days during which you had a home in the UK, and at least 30 of those days should fall within the relevant tax year. Additionally, you must have been present in that home for at least 30 days at any time during the year. If you have a home overseas, you shouldn’t spend more than 30 days in it during the tax year.
• You work full-time in the UK for any period within a tax year.

Automatic Overseas Tests

You will not be deemed a UK tax resident if any of the following conditions apply:

• You were a UK resident for one or more of the last three tax years, and you spent fewer than 16 days in the UK in the current tax year.
• You were not a UK resident in any of the three tax years preceding the current tax year, and you spent fewer than 46 days in the UK in the current tax year.
• You work full-time overseas and spend fewer than 91 days in the UK during the tax year. You may still work in the UK for a limited period—the maximum number of days when you work for more than three hours a day should be less than 31. Additionally, there should be no substantial breaks from your overseas employment.

Sufficient Ties Test

If you don’t meet any of the automatic tests, you will need to assess your connections to the UK, along with the number of days you spent in the country, to determine your tax residency status.

The applicable ties will depend on your residency in the last three years. If you weren’t a UK resident during this period, you’ll consider the following ties:

1. Family ties
2. Accommodation ties
3. Work tie
4. A 90-day tie

If you have been a UK resident for the last three years, you must also consider country ties in addition to the four ties mentioned above.

Each tie has unique conditions and qualifying criteria. For further details, refer to His Majesty’s Revenue and Customs (HMRC) Residence, Domicile, and Remittance Basis Manual (starting from RDRM11500)

Establish Residence in Dubai

To qualify for tax residency in Dubai, it is necessary to spend considerable time in the city or establish it as your primary residence. To achieve this, you’ll need an appropriate long-term residence visa.

UAE offers various types of visas for freelancers, students, investors, or business owners. Assess your financial and personal circumstances to determine the type of visa you may be eligible for.

Obtain an Emirates ID

An Emirates ID is a mandatory identification card for every UAE citizen and resident. It serves as official proof of your UAE residence, provides access to government services (like healthcare), and enables seamless travel within the GCC member states.

To obtain your Emirates ID, you’ll need to prepare the following documents:

1. Valid passport
2. Residence visa
3. Application form
4. Photographs
5. Additional documents depending on your visa type (for example, you’ll need to provide sponsorship documents if you work for a company in the UAE)

Obtain the Tax Residency Certificate

Once you’ve satisfied any of the UAE’s tax residence criteria, you may apply for a Tax Residency Certificate (TRC). This is an official document issued by the UAE’s Federal Tax Authority that proves your tax residency status in the country.

You’ll need to submit the following documents and forms to obtain your TRC:

• Passport
• Residence visa
• Emirates ID
• Source of income/salary certificate
• UAE bank statements from the last six months
• A certified copy of the residential lease agreement or a title deed if you own the property
• Proof of permanent place of residence
• Entry and exit report from the Federal Authority of Identity and Citizenship or a local competent government entity

You can apply for your TRC through the EmaraTax online portal. Processing fees are AED 3,300, and it typically takes 10–12 working days to receive your certificate.

The application must comply with the documentation standards outlined in Ministerial Decision No. 27 of 2023. All documents must be current, complete, and translated into Arabic if not already.

In addition to verifying your tax residency status, the TRC enables you to benefit from the UK–UAE Double Taxation Agreement.

This treaty allocates taxing rights between the two countries for specific types of income – including employment earnings, dividends, rental income, pensions, and capital gains.

It ensures that qualifying UAE tax residents are not taxed twice on the same income, provided they meet the required documentation and residency criteria.

Inform HMRC You’re No Longer a UK Tax Resident

You are required to notify HMRC that you’re permanently leaving the UK.

If you don’t normally file a Self Assessment tax return (for instance, if you weren’t self-employed or liable for capital gains tax), you should:

• Complete form P85
• Include Parts 2 and 3 of your P45 form if you’ll stop working for a UK company upon departure

If you normally file a Self Assessment tax return, you must inform HMRC you’re leaving by completing the tax return and a supplementary form SA109 to declare your residence status. You can’t use HMRC’s online services to submit the form—you must do one of the following:

• Send forms by post
• Use commercial software
• Rely on a professional to help you with completing and submitting the forms

Based on the information you provided, HMRC will determine whether you’re entitled to a tax refund for the tax year you’re leaving the UK. If you are, the refund may be issued:

1. Directly to you
2. To a nominated individual authorised to receive the payment on your behalf

HMRC can send cheques only within the UK, and most cheques can be deposited only into UK accounts.

If you need assistance informing HMRC that you’re relocating to Dubai, consult professional advisers like those at Titan Wealth International. Our experts can evaluate your tax residency position, ensure you meet all UAE residency requirements, and assist you with notifying HMRC about your move.

Tax Implications of Switching Your Tax Residence From the UK to Dubai

By becoming a UAE tax resident, you will benefit from the country’s favourable tax regime, which includes:

• No personal income tax
• No wealth tax
• No dividend tax
• No property tax
• No inheritance tax

However, the UAE’s zero income tax policy does not extend to UK-sourced income. Even if you are no longer a UK tax resident, you may still be liable for UK tax on income arising from UK assets. For example, rental income from UK property remains subject to UK income tax and must be reported via a Self Assessment tax return.

If you dispose of UK property while living in Dubai, you will remain liable for UK capital gains tax (CGT). This applies regardless of your non-resident status. However, gains from UK company shares are not typically subject to CGT unless:

• You return to the UK within five years of departure; or
• You sell shares in a company that is UK property rich (i.e. 75% or more of its gross asset value derives from UK real estate)

Corporate Tax Considerations in the UAE

As of 1 June 2023, the UAE imposes a 9% corporate tax on net business profits exceeding AED 375,000 per year. This applies to:

• UAE-registered businesses
• Foreign companies that are effectively managed and controlled from the UAE

While this tax does not affect individual income, it is relevant for expats who own or operate businesses from within the Emirates. If your company has operations in both the UK and UAE, you may be eligible for relief from double taxation under the UK–UAE Double Tax Treaty.

Are There Restrictions to Visiting the UK Once You Become a Non-UK Tax Resident?

You can visit the UK without regaining UK tax residency status automatically, though there are restrictions on the duration of your stay in the UK and the reasons for your visit. Breaching these limitations might result in the reacquisition of your UK tax residency status.

Under the UK’s Statutory Residence Test (SRT), non-residents may visit the UK for up to 90 days per tax year, but no more than 30 of those days can involve UK-based work.

If you exceed these thresholds or re-establish business, property, or close family ties in the UK, you may unintentionally trigger UK tax residency again.

It is crucial to track your days and ties carefully and retain supporting documentation to evidence your non-resident status.