Question 1

How much tax do foreigners pay in Dubai in 2026?

Accepted Answer

At a personal level, the UAE has no income tax: the rate on salaries, earnings and personal capital gains is 0%. At company level there is corporate tax: 0% on the first AED 375,000 of taxable profit and 9% above that. Free zone entities that meet the conditions (Qualifying Free Zone Person) can be taxed at 0% on their qualifying income. Standard VAT is 5%. There is no wealth tax, no inheritance tax and no general withholding tax. Figures are indicative for 2026; each case is confirmed individually.

Question 2

If I move to Dubai, do I automatically stop paying tax at home?

Accepted Answer

Not automatically. You stop being a tax resident of your home country only when you break the ties that define residency there (days of presence, centre of vital and economic interests, and family presumptions). Until then you are typically taxed on worldwide income even if you live in Dubai. Planning the exit is essential, and the rules differ by country. We specialise in the Spain to UAE move.

Question 3

What is the 9% corporate tax and who does it affect?

Accepted Answer

It is the UAE corporate tax, applicable to financial years beginning on or after 1 June 2023 (for a calendar-year company, the first taxable period was 2024). It applies 0% on taxable profit up to AED 375,000 and 9% on the excess. Free zone companies (Qualifying Free Zone Persons) keep 0% on qualifying income only if they meet the conditions: adequate substance, the de minimis test, audited financials and transfer pricing; a breach triggers the 9% rate. Very large multinational groups (consolidated revenue of EUR 750 million or more) may be subject to a 15% domestic minimum top-up tax.

Question 4

Is there any capital gains, wealth or inheritance tax in the UAE?

Accepted Answer

For individuals, the UAE does not levy personal capital gains tax on personal investments, nor a wealth tax, nor an inheritance or estate tax. There is a 5% VAT and an excise tax on specific goods such as tobacco and energy drinks. Real estate transfers carry a Dubai Land Department fee (around 4%) and there is no annual property tax on owners, although tenants pay a municipality housing fee of about 5% of the annual rent through the utility bill.

Question 5

What is the UAE TRC and why do I need it?

Accepted Answer

The TRC (Tax Residency Certificate) is issued by the UAE Federal Tax Authority and proves your tax residency in the Emirates. It can be obtained through different tests: 183 days of presence; 90 days with a permanent home or a business in the UAE; or having your centre of vital interests in the UAE. It helps apply double tax treaties, but on its own it does not shield your residency: if your centre of economic interests or your family (spouse and minor children) remain at home, the tax authority can still challenge it and the treaty tie-breaker applies.

Dubai taxes for foreigners in 2026

The UAE tax map in 2026

0% only works if you exit your home country properly

Genuine tax residency

Treaties and the UAE TRC

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