Dubai has been a popular tax haven for expats from all over the world for years. High-tax countries such as the UK, France, Germany, Italy and Austria in particular lose thousands of wealthy people to the metropolis on the Arabian Gulf every year.
But what taxes are there in Dubai and how attractive are they really in an international comparison?
This comprehensive guide details all the taxes in Dubai and explains why they are so attractive, so many people come to Dubai primarily for the taxes. Emigrate to Dubai.
- Dubai is definitely a tax haven and offers numerous tax advantages by international comparison.
- Private individuals pay no tax at all, neither on income nor on capital gains, interest, or dividends.
- Corporate profits are taxed at a rate of 9 %. Companies with revenue of less than 3,000,000 AED are exempt.
- Cryptocurrencies or Trading profits of any kind are also not taxed.
- Rental income are generally also tax-free, unless you operate a business in the field of short-term rentals (e.g., Airbnb). From 8 residential units onwards, the establishment of and taxation through a mainland company is necessary.
- Offshore companies Wie US LLCs werden in Dubai genauso versteuert, wenn diese aus Dubai geleitet werden.
All taxes in Dubai at a glance
The fact that there are absolutely no taxes in Dubai is a myth and has not been the case for a long time. Nevertheless, the tax advantages are enormous, especially for certain people. Here is an overview of all the most important taxes and tax categories and their rates.
| Levy | Rate | Applies to |
|---|---|---|
| Income tax | 0 % | salary, bonuses, side income |
| Capital gains tax | 0 % | shares, ETFs, crypto, dividends, interest |
| Inheritance, gift & wealth tax | 0 % | private assets |
| Social security contributions | 0 %pension contributions only for UAE and GCC nationals | expat employees |
| Corporate Tax | 0 / 9 %9 % only above 375,000 AED profit | companies, since June 2023 |
| Minimum tax (DMTT) | 15 % | groups from 750 m € global turnover, since 2025 |
| VAT (value added tax) | 5 % | most goods and services, since 2018 |
| Excise tax | 50 – 100 % | soft drinks, energy drinks, tobacco, vapes |
| Customs duty | 5 % | most imports of goods |
| Property transfer fee (DLD) | 4 % | one-off on purchase |
| Housing Fee | 5 %of the annual rent, monthly via the DEWA bill | Housing in Dubai |
As of September 2026. What that means for your net income is shown by the Steuerrechner further down; the details of each levy follow in the next sections.
Private individuals
At a private level, you are still completely tax-exempt as long as you do not carry out any commercial activities. Therefore, income from a job through salary and other income is still tax-free.
Income
The income you receive from your job as a salary is tax-free without limits. There are also no additional social security contributions, as is the case in many other countries. Gross is therefore always net when it comes to salary.
However, if you are now self-employed and run a company, this salary must not be infinitely large. For example, if a company has a turnover of USD 1 million and the expected profit is USD 800,000, the salary must not correspond to the amount of the profit and erode it.
This is based on American tax law and is referred to as an arm's length, i.e. a standard that is customary in the industry. This means that the salary of an entrepreneur must also be customary in the industry and in a healthy relationship to turnover.
Capital gains & Trading
Capital gains from stocks, ETFs, interest, or similar are still exempt from tax without any limit. This is why Dubai is particularly popular with investors. However, this also applies to active traders, meaning that trading is still not subject to taxation as long as it is done exclusively for oneself. This sets Dubai apart from other tax havens that do not tax passive capital gains, but do tax active trading or investing (e.g., Switzerland).
Crypto
Tax-exempt capital gains also include cryptocurrencies. Dubai has now become a veritable hub for numerous blockchain companies and investors. There are still no taxes on crypto profits.
Dividends
Dividends received from shareholdings in companies are also completely tax-free. This means that distributions from dividend shares, but also from shareholdings in companies, are exempt from any tax.
Real estate & Airbnb
Real estate is generally tax-exempt in Dubai as long as it is not used for short-term rentals on a large scale, similar to a hotel. In practice, you can therefore buy as many apartments as you like and the rental income from them is tax-free without limit.
However, for short-term rentals via Airbnb or booking.com, a license from the Dubai Department of Economy and Tourism is required. Up to 8 residential units require the so-called Holiday Home Permit. If it's more than that, a mainland company with the “Vacation Home Rental” license is needed.
There is also no annual property tax, as in many other countries.
There is only a 4 % fee for the Dubai Land Department at the time of purchase. This is known as the DLD fee.
Tax-free does not mean fee-free, though: on purchase the Dubai Land Department charges a one-off transfer fee of 4 % of the purchase price, and anyone living in Dubai pays the Housing Fee of 5 % of the annual rent, spread over twelve monthly instalments on the DEWA bill. Both are fees, not taxes, and they change nothing about rental income being tax-free.
Inheritance, gift & wealth tax
Another reason why so many wealthy people move to Dubai is that there are no taxes on inheritance, gifts and assets. Germany is once again talking about introducing a wealth tax and Switzerland still has one. Inheritance and gifts are still taxed in many countries around the world.
In Dubai, the transfer of assets of all kinds is not taxed.
Companies
For a very long time, companies in Dubai were completely exempt from tax. However, times have changed. Since 2023, there has been a so-called corporate tax. This is generally 9% and taxes the profits of companies.
In practice, however, there are several points that influence or exclude this.
Small Business Relief
Companies with a turnover of less than AED 3 million are still exempt from tax. Converted, this is approximately USD 800,000 that can still be turned over tax-free as a company. Profits are also not taxed as long as turnover does not exceed this limit.
Qualified Income / Activities
There is still a complete tax exemption without a limit for certain companies or business activities that are carried out in Freezones. These activities are known as qualified activities and may only be carried out in Freezones. These include the following activities, among others:
- Manufacture of goods or materials. b. Processing of goods or materials.
- Trade in qualified raw materials.
- Holding shares and other securities for investment purposes.
- Ownership, management and operation of ships.
- Reinsurance services.
- Fund administration services. h. Asset and investment management services.
- Head office services for related parties. j. Treasury and financing services for related parties.
- Financing and leasing of aircraft.
- Distribution of goods or materials to or from a particular zone.
- Logistics services.
375.000 AED allowance
In addition, regardless of turnover, there is an allowance of around AED 375,000, the equivalent of over USD 100,000, which does not have to be taxed. No matter how high the company's turnover or profit is, this allowance is de facto not taxable.
VAT
Since 2018, there has been a VAT of 5% in the UAE. This tax applies to the sale of products and services sold within the UAE. At the same time, companies can reclaim this VAT when purchasing products and services from other companies.
For companies, this is only mandatory if VAT-liable turnover is more than AED 375,000. Below this amount, you do not have to register or pay VAT. A so-called VAT Exempt is applied.
Real estate is generally exempt from VAT, unless it is commercial real estate.
Anyone who buys goods abroad and imports them into the UAE as a resident usually has to pay customs duty in addition to VAT. This is also 5% and therefore the duty is around 10% on most imported goods.
Minimum tax for large groups (DMTT)
Since 1 January 2025 the global minimum tax applies in the UAE as well: multinational groups with at least 750 m € in consolidated global turnover pay an effective 15 %, in the freezone too. For founders, the self-employed and small and mid-sized businesses nothing changes, the threshold is far above that scale.
Other levies in everyday life
Life in Dubai is not entirely free of levies either. The items below turn up in daily life, but they are modest and together come nowhere near what disappears from a gross salary in Europe.
Excise tax
Since 2017 the UAE has taxed products regarded as harmful to health: 50 % on soft drinks and sweetened beverages, 100 % on energy drinks, tobacco and e-cigarettes including liquids. The tax is already in the shelf price; only traders and importers of such products have to register.
Quelle: tax.gov.ae: Excise Tax
Housing, cars and tourism
The housing fee of 5 % of the annual rent runs through the monthly DEWA bill. For cars there is no vehicle tax, only charges: annual registration for around 400 AED and the Salik toll of 4 to 6 AED per gantry depending on the time of day. Hotels charge the Tourism Dirham of 7 to 20 AED per room and night plus the usual municipality and service surcharges, so mainly relevant for the weeks before you have your own flat.
Social contributions and unemployment insurance
Only UAE and GCC nationals pay social security contributions into their pension schemes. No pension, health or long-term care contributions come off an expat's salary; health cover runs privately through the employer or yourself. The only obligation since 2023 is the ILOE unemployment insurance for employees, costing 60 or 120 AED a year depending on salary band, so a token 15 to 30 €.
How to actually handle corporate tax and VAT day to day (FTA registration, mandatory invoice details, receipts and e-invoicing) is set out step by step in the Corporate Tax Guide.
Tax trap: offshore company (e.g. US LLC)
The myth that entrepreneurs can relatively easily avoid the 9 % corporation tax in the UAE by setting up an offshore company in a tax haven with 0% keeps circulating. The USA with the US LLC is particularly popular.
However, this is a tax trap, as offshore companies that were founded abroad on paper but are effectively managed from Dubai or the UAE are also subject to tax laws here.
This is relatively clearly regulated and is also protected by the OECD standard, which bases the company's registered office and tax domicile on the place of management. The technical term is Place of Effective Management.
This is also clearly stated in the excerpt of the legal text for corporate tax law in the UAE. It is therefore not a gray area or loophole, as some call it, but rather clear tax evasion.
Tax calculator
When we compare the tax system of Dubai or the UAE with that of numerous European countries, a clear picture emerges. Dubai is significantly more business-friendly than all European countries, even more so than Monaco.
The tax system already offers significant advantages for small business owners and self-employed individuals. Below is a tax calculator based on current tax laws for calculating taxes on various incomes in the UAE.
Dubai Setup · UAE
Estimate your tax burden as an expat in Dubai (UAE), private individuals pay 0 % income tax; only corporate tax is relevant.
No income tax for private individuals in the UAE. Note: freelancers and sole traders only fall under corporate tax from AED 1m of UAE business turnover (see below).
No income tax for private individuals in the UAE. Note: freelancers and sole traders only fall under corporate tax from AED 1m of UAE business turnover (see below).
No income tax for private individuals in the UAE. Note: freelancers and sole traders only fall under corporate tax from AED 1m of UAE business turnover (see below).
No income tax for private individuals in the UAE. Note: freelancers and sole traders only fall under corporate tax from AED 1m of UAE business turnover (see below).
No income tax for private individuals in the UAE. Note: freelancers and sole traders only fall under corporate tax from AED 1m of UAE business turnover (see below).
Effective tax rate
Note: Non-binding estimate based on current UAE tax law (as at 2026). Private individuals pay 0 % income tax and 0 % on dividends, capital gains and private crypto gains; there is no wealth or inheritance tax. Corporate tax: 0 % up to AED 375,000 profit, 9 % above; Freezone (QFZP) 0 % on qualifying income (substance requirements); Small Business Relief 0 % with revenue ≤ AED 3m until the end of 2029; DMTT 15 % only for large groups (≥ €750m). VAT of 5 % is charged separately. This calculation is not individual tax advice. QFZP conditions, substance, double tax treaties and special cases are not reflected. For a binding assessment, please book a consultation.
Frequently asked questions
Below are the most frequently asked questions and answers regarding taxes in Dubai.
Are crypto & trading gains still tax-free?
Yes, profits from crypto and trading remain tax-free. Thus, Dubai and the UAE are an optimal location for traders and investors.
Can I start a company in Dubai and live in Germany to save on taxes?
From a tax perspective, this is generally not possible, as the place of effective management would continue to remain in Germany.
One would need to demonstrate a managing director and actual activities on the ground in Dubai for the tax residency in Dubai to be actually recognized.
Do I pay taxes on rental income from Dubai real estate?
Dubai itself does not impose taxes on rental income. However, if you live in a country with income tax, you must also pay taxes on rental income from Dubai in your country of residence.
How much tax do you pay in Dubai?
As a private individual 0 %: no income tax, no capital gains tax, no inheritance or wealth tax, no social contributions off your salary. Companies pay 0 % up to 375,000 AED of profit and 9 % above that. On consumption there is 5 % VAT, and 50 to 100 % excise on soft drinks and tobacco.
Do you pay any tax in Dubai at all?
As an employee or private investor, not directly, there is not even a tax return for individuals. Indirectly you contribute through the 5 % VAT and various fees. Since 2023 companies must register with the Federal Tax Authority and file annually, even if the result is 0 %.
Is Dubai a tax haven?
A low-tax country with rules, not a black hole: 0 % privately, but 9 % corporate tax, 5 % VAT, substance requirements in the freezones and, since 2018, automatic exchange of information (CRS) with more than 100 countries, Germany, Austria and Switzerland among them. Nothing can be hidden here; a great deal can be optimised legally.
How does Dubai fund itself without taxes?
Through fees on almost every administrative service, company licence fees, its share of VAT and customs duties, and its own state-owned groups, from Emirates through DP World to DEWA, plus the property business. Oil barely matters for the emirate of Dubai itself any more; most of its economic output comes from trade, logistics, tourism and finance.
What is the 183-day rule in the UAE?
Under Cabinet Decision No. 85 of 2022 you are tax resident in the UAE if you spend 183 days a year there; with a home and economic interests on the ground, 90 days is enough. From 183 days the FTA issues the tax residency certificate, which you present to the tax office at home as proof.
Summary
In summary, it can be said that the UAE is still very attractive for employees, entrepreneurs and investors in terms of taxation. There are extensive tax exemptions at a private level and there are also numerous regulations and laws for companies that reduce, avoid or legally exclude the recently introduced 9 %.
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