United Arab Emirates

Quick Facts

• Tax residency threshold: 183 days in a consecutive 12-month period, OR 90 days with additional conditions
• Alternative triggers: Having your usual/primary place of residence AND center of financial and personal interests in UAE
• What counts as "day": Any presence (even part of a day) counts as a full day
• Consequence: UAE has no personal income tax. Tax residency matters for obtaining Tax Residency Certificates (TRC) and applying double tax treaties
• Common visas: Employment visa, Golden Visa, Investor visa — visa status doesn't determine tax residency

Residency Rules Explained

• 183-day test: Physical presence in UAE for 183+ days in any consecutive 12-month period qualifies you as UAE tax resident
• 90-day route: If present 90+ days in a 12-month period AND you are a UAE/GCC national or hold valid UAE residence permit AND you have a permanent place of residence or carry out business/employment in UAE, you may qualify
• Center of interests route: If UAE is your usual or primary place of residence AND your center of financial and personal interests is in UAE, you may be treated as resident without meeting day tests
• Exceptional circumstances: Days prevented by force majeure, accidents, or uncontrollable events may be excluded from counts

Visa vs Tax Residency

Key Dates

• Tax period: Any consecutive 12-month period (not limited to calendar year)
• TRC application: Can apply once you meet residency criteria for a completed period (not future periods)
• Day-count rule: All days or part-days in UAE count as full days

Common Pitfalls

• Confusing visa status with tax residency
• Assuming you must pay UAE personal income tax (there is none for individuals)
• Not obtaining a Tax Residency Certificate when needed to claim treaty benefits
• Overlooking the "center of interests" test when day counts are borderline
• Misapplying the exceptional circumstances exclusion
• Not keeping adequate records to prove residency (entry/exit stamps, lease agreements, utility bills)

Before You Reach 183 Days

• Track all entry and exit dates with DayVA
• Understand whether you need UAE tax residency for treaty purposes in your home country
• If seeking UAE tax residency, ensure you meet one of the qualifying tests
• Keep documentation: visa, lease agreements, employment contracts, bank statements
• Consider the 90-day route if you have UAE residence and business/property ties

Offshore & Expat Considerations

• No personal income tax: UAE does not tax individual income, regardless of residency status
• Tax Residency Certificate (TRC): Main reason to establish UAE tax residency is to obtain a TRC for claiming treaty benefits in other countries
• Double taxation treaties: UAE has 100+ DTAs; a TRC is often required to access treaty benefits and reduced withholding rates
• Corporate tax considerations: While individuals don't pay income tax, UAE introduced 9% corporate tax in 2023 for businesses (with exemptions)
• Foreign income: Not taxed in UAE, but your home country may still claim tax based on citizenship or other ties
• Tie-breaker rules: If your home country also considers you resident, double tax treaty tie-breaker provisions (permanent home, center of vital interests, habitual abode) determine which country has primary taxing rights
• Record keeping: Entry/exit records, lease contracts, employment proofs, and utility bills help support residency claims for TRC applications