What UK Expats Need to Know About Tax in Dubai

With a a UK expat population equal to that of Oxford, Dubai is an attractive location for many Britons.

According to a recent article in The Times it’s estimated there are more than 180,000 Britons living in the UAE and could be as many as 250,000, with the largest proportion living in Dubai.

You can hardly begin to discuss life in Dubai without a mention of their tax regime. The comment ‘Have you heard that the UAE is tax-free?’ whilst not entirely true, is true enough to be very interesting.

So let’s dig a little deeper.

Tax Regime in Dubai

The truth is that the UAE does not impose income tax on individuals, so if you are resident for tax in the UAE you can work as an employee and keep more of your wages. With tax rates of 20-45% in the UK, this can be very attractive.

In addition, the UAE does not impose capital gains tax or inheritance tax on individuals.

But some other taxes may apply:

• Non-GCC nationals are exempt from social security contributions in the UAE, but may need to pay unemployment insurance contributions
• VAT is charged in the UAE
• Property taxes may apply
• Tourist taxes may apply

Businesses Taxes in Dubai

On the corporate side, up until recently, the UAE did not impose any corporation tax. However, a regime came into force from mid 2023 and now a corporation tax rate applies to profits.

In addition, UAE corporate tax can apply to business profits of an individual, in contrast to how the UK applies corporation tax.

Specialist advice if you are relocating to Dubai

We are experienced in assisting individuals relocate to Dubai, whether for business or lifestyle reasons. We also advise individuals planning to return to the UK from Dubai.

If you are considering relocating to Dubai from the UK, it’s important to be aware of the tax regime in the UAE and your UK tax obligations on departure. By working with our associates in the UAE we can ensure that you are compliant in both jurisdictions.

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