Taxes in Dubai

    In addition to a first-class standard of living, Dubai also offers a tax-free environment for individuals and legal entities.

    Income and wealth tax

    No income tax is levied in Dubai. All types of personal income are tax-free. This includes salary, pension, rental income and capital income such as dividends, interest and capital gains of all kinds.

    There is also no wealth tax.
    (There is also no tax on real estate).

    For more complex matters, it is advisable to consult an external tax advisor.

    Property gains, inheritance and gift tax

    In Dubai, no real estate gains tax is levied on the resale of real estate. However, there is a 4% transfer tax on property transactions, which is usually paid by the buyer.

    Inheritances and gifts are not taxable either at the time of death or on receipt of an inheritance or gift.

    Value Added Tax

    As of 01.01.2018, a VAT of 5% was introduced in the United Arab Emirates.

    Residence and residence permit in Dubai

    There are basically three ways to obtain a residence permit:

    Company Formation

    By registering a company, the company acts as the owner's sponsor to obtain an investor visa, which is valid for three years.

    Find out more about company formation here.

    Real Estate Purchase

    By purchasing real estate worth at least AED 1,000,000, an individual is also eligible to apply for an investor visa valid for three years.

    Ordinary employment with a local company

    A regular work visa, which is valid for two years, can be obtained through regular employment contract with a local company in Dubai.