Starting a business in
🇦🇪United Arab Emirates
Checked November 4, 2026 · How we score
Corporate tax
9%
Top income tax
0%
Setup from
$3,000
all-in, first year
Time to form
10 days
can be done remotely
Taxes in UAE
| Corporate income tax | 9% 9% on taxable profit above AED 375,000 (0% up to that threshold). 0% on qualifying income of a Qualifying Free Zone Person (QFZP) that meets substance and de minimis rules; non-qualifying income is taxed at 9%. Small Business Relief (revenue up to AED 3m) lets eligible companies be treated as having no taxable income; the Ministry of Finance has reportedly extended it to tax periods ending on or before 31 Dec 2029 (originally 2026), and QFZPs cannot use it. A 15% Domestic Minimum Top-up Tax applies from 2025 to multinational groups with consolidated revenue of EUR 750m or more. All taxable persons, including 0% free zone companies, must register with the FTA. |
|---|---|
| Personal income tax (top) | 0% No personal income tax on salaries, dividends, interest or capital gains for individuals. Corporate tax can apply to individuals only if they run a business or business-like activity in the UAE with turnover above AED 1m a year. |
| Tax system | No personal income tax |
| Capital gains tax | 0%No capital gains tax for individuals. For companies, capital gains are part of taxable income at 9%, though participation exemption can apply. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 5% |
| Social security | No social security for expatriates. Employers must pay end-of-service gratuity; UAE and GCC nationals have pension contributions. |
Forming a company in UAE
| Usual entity | Free zone company (FZE/FZ-LLC) or mainland LLC |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,000–$8,000 |
| Annual running cost | $2,500–$7,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Moderate |
Residency and visas
A free zone company licence usually comes with 1-3 investor/employee residence visas (2-year, renewable), so founders get residency by owning a company. The 10-year Golden Visa starts at AED 2m in property (about $545,000) or through other investor, entrepreneur and talent routes. The Virtual Working Programme visa requires about $3,500 a month income. Tax residency certificates need 183 days in the UAE (or 90 days with a residence permit and a home or business).
| Digital nomad visa | Virtual Working Programme (Remote Work Visa), $3,500/month income |
|---|---|
| Golden visa | Yes, from $545k |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
Qualifying Free Zone Person (0% CIT)
Free zone companies meeting substance, transfer pricing and de minimis conditions pay 0% on qualifying income (e.g. transactions with other free zone persons, qualifying activities) and 9% on the rest. Most service and trading income from mainland or foreign customers is typically non-qualifying, so the headline 0% is narrower than it sounds.
Small Business Relief
Resident companies with revenue of AED 3m or less can elect to be treated as having no taxable income, though they must still register and file. The relief sunset has reportedly been pushed to 31 Dec 2029; QFZPs and members of large multinational groups are excluded.
Golden Visa
10-year renewable residence for investors (property from AED 2m), entrepreneurs, specialised talent and other categories, without needing a local sponsor.
Virtual Working Programme
One-year renewable visa for remote workers earning about $3,500 a month, with no UAE income tax on the earnings.
Pros and cons
Why founders pick UAE
- No personal income tax, no capital gains tax and no dividend withholding tax
- Low 9% corporate tax with a 0% route for qualifying free zone income
- Company ownership brings a residence visa
- Fast, largely online incorporation in many free zones
- Strong banking and payments infrastructure and a deep service-provider ecosystem
Watch out for
- Corporate tax registration and filing are mandatory even at 0%
- Economic substance and audited financial statements are required in many free zones
- Business bank accounts have become slower and stricter on KYC, and often need an in-person visit
- Free zone licences cost more than formation in low-cost jurisdictions and renew yearly
- Tax residency and treaty benefits depend on genuine presence in the UAE
Best for: Founders and freelancers who want zero personal income tax and a residence visa · Trading, consulting and e-commerce companies serving global clients · Crypto and Web3 founders using VARA or ADGM frameworks · Holding companies and family offices
UAE: common questions
Is Dubai tax free?
Not entirely. Dubai has no personal income tax or capital gains tax for individuals, but the UAE charges a 5% VAT and a 9% federal corporate tax on business profits above AED 375,000. Qualifying free zone companies can pay 0% on qualifying income.
Does Dubai have income tax?
No. The UAE does not tax salaries, dividends, interest or rental income of individuals. Individuals are only caught by corporate tax if they run a business activity in the UAE with annual turnover above AED 1 million.
How much does it cost to set up a company in Dubai?
A free zone company with a licence and one residence visa typically costs about $3,000 to $8,000 in the first year, depending on the free zone and activity. Annual renewal, visa renewal, registered office and accounting commonly run $2,500 to $7,000. Mainland LLCs and regulated activities cost more.
What is the corporate tax rate in the UAE?
The federal corporate tax rate is 9% on taxable profit above AED 375,000, with 0% below that threshold. Qualifying Free Zone Persons pay 0% on qualifying income, and large multinational groups face a 15% top-up tax from 2025.
Can a non-resident open a UAE company remotely?
Many free zones allow remote application and licence issue, with documents signed digitally. Residence visa processing and especially bank account opening often require at least one visit to the UAE, so plan a trip.
Do I have to pay corporate tax with a 0% free zone company?
You must still register with the Federal Tax Authority and file a corporate tax return. A free zone company pays 0% only on qualifying income and only if it meets substance and de minimis conditions; otherwise 9% applies to non-qualifying income.
Sources
- Federal Tax Authority (UAE)
- Ministry of Finance - Corporate Tax
- Federal Authority for Identity, Citizenship, Customs and Port Security - residency
- PwC Tax Summaries - United Arab Emirates
Compare UAE
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.