Tax system in United Arab Emirates
The United Arab Emirates is still a low-tax jurisdiction for individuals: there is no personal income tax, no net wealth tax, no inheritance tax and no personal capital gains tax regime. For employees and investors, the main day-to-day issues are usually business activity rules, payroll social security for nationals, VAT and foreign tax exposure.
The UAE now has a federal corporate tax regime. Most businesses are subject to 9% on taxable income above AED 375,000, with 0% below that threshold and a separate 15% Domestic Minimum Top-up Tax for in-scope large multinational groups from financial years starting on or after 1 January 2025. VAT is 5%, and some emirates also levy municipality or property fees.
Tax rates at a glance
- Income tax
- 0%Zero
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%
- Corporate tax
- 0% / 9%
- Dividend tax
- 0%
- VAT
- 5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHigh earnersInvestorsDigital nomadsHolding companies
Watch out for
- The UAE is not tax-free for businesses. Corporate tax, VAT, transfer fees, licensing costs and municipality charges can still matter even when personal tax is 0%.
- Large multinational groups need to check the UAE DMTT rules, which apply from financial years starting on or after 1 January 2025 and continued to be updated through 2026 guidance.
- Payroll treatment differs by employee nationality: UAE and other GCC nationals can have social security contributions, while non-GCC employees generally do not.
Frequently asked questions
Is the UAE a low-tax country?
Yes. The UAE has no personal income tax, no wealth tax and no inheritance tax, but businesses can still face federal corporate tax, VAT, payroll rules and local fees.
Which taxes apply in the UAE?
The main taxes and charges to check are corporate tax, VAT, unemployment insurance, social security for UAE and some GCC nationals, municipality fees and any sector-specific taxes such as legacy bank or extractive taxes.
Is the UAE good for founders and investors?
It can be, especially for people who want no personal income tax and access to a major business hub. The right answer still depends on corporate tax scope, free zone conditions, VAT, payroll, banking and where the actual management happens.