Living in the United Arab Emirates: what the state taxes, what it doesn't tax, and your tax residency

The UAE does not levy personal income tax. It taxes consumption (VAT of 5 %) and corporate profits (0 % up to AED 375,000, 9 % above that). You are considered a UAE tax resident after 183 days of presence in any 12-month period, or after 90 days if you meet certain eligibility requirements.

What the Emirati state does not tax

There is no personal income tax. The official UAE portal states it unequivocally: "The UAE does not levy income tax on individuals." The page containing this statement was last updated on March 30, 2026.

Don't confuse "no income tax" with "no tax at all." If you are self-employed, the tax treatment of your business is determined on a case-by-case basis; this page does not cover this in detail. Two taxes are particularly important to know: VAT and corporate income tax.

What the Emirati state taxes

VAT: 5 %

The standard VAT rate is 5%. It has been applicable since January 1, 2018.

Corporate tax: 0 % then 9 %

The federal corporate income tax is 0 % on the portion of taxable income not exceeding AED 375,000, and 9 % on any amount exceeding that. It applies to fiscal years beginning on or after June 1, 2023. The threshold and rate are derived from Cabinet Decision No. 116 of 2022, dated December 30, 2022. These rates apply to corporations in general; the official portal indicates a separate rate for large multinational groups, which is not detailed on this page.

Recent texts

Two recent texts affect UAE taxation. Cabinet Decision No. 55 of 2025, announced on May 20, 2025, extended corporate income tax exemption to foreign entities held at 100 % by certain exempt entities. The tax procedure rules were amended, effective April 1, 2026. The official announcements of these two texts do not mention any change to the 9 % rate or the AED 375,000 threshold.

Your UAE tax residency: three options

Cabinet Decision No. 85 of 2022, dated September 2, 2022, establishes the tax residence of individuals. It has been in effect since March 1, 2023. Only one option is required.

Ministerial decision no. 27 of 2023, in force since March 1, 2023, specifies the calculation:

• The 183 and 90 days are counted over 12 consecutive months, without any requirement for consecutive days; ;
• The Authority may disregard days due to exceptional circumstances; ;
• The "permanent residence" is a furnished dwelling, made available on a continuous basis, that you own or rent.

Emirati tax residency is determined according to the criteria of Decision No. 85 and Ministerial Decision No. 27. French tax residency is governed by its own rules: these are discussed on our page about leaving France.

The tax residence certificate

The certificate proves your tax residence. The tax authority distinguishes between two applications.

Request outside of the agreement. The parts you need depend on your specific situation.

Application under an agreement. A passport is always required for a convention certificate. You will need your passport (including your Emirates ID, if applicable) with a record of entries and exits, and, if applicable, proof of Emirati income or salary, as well as any additional evidence required by the applicable convention.

The certificate fees

The fees listed on the Tax Authority's website are as follows:

• 50 AED deposit, non-refundable in case of rejection; ;
• 1,000 AED for the examination and electronic certificate of a natural person without a corporate tax number; ;
• 250 AED per paper copy.

These amounts are verified on the date of your application, including for an application outside the agreement.

Numerical example (fictitious profile)

Situation. A fictional French businessman moves to the Emirates. He spends 205 days there over 12 months. He pays himself a salary from his company, whose taxable income is 900,000 AED.

Issue. He believes that nothing is taxed in the Emirates. He doesn't know if he is a tax resident there, nor what his company owes.

Strategy. He controls three points: the counting of his days, the corporate tax of his structure, and the treatment of any activity he may carry out on a personal basis.

Result. With 205 days, he exceeds the 183-day threshold with a 22-day margin: he is thus considered a UAE tax resident. The corporate tax on his structure amounts to AED 47,250, representing 9 % of the taxable income exceeding AED 375,000 (AED 900,000 − AED 375,000 = AED 525,000), before any potential exemptions. There is no personal income tax.

What changes depending on your situation

• The number of days spent there, and how you count them.
• Your nationality and your residence permit, which open or close the door to the 90 days.
• Your accommodation: owned, rented, furnished, available continuously.
• The form of your activity: company or self-employment.
• Corporate tax exemptions that may apply to your structure.

These elements are examined on a case-by-case basis. No tax result can be announced without this examination.