Introduction
If you’re researching income tax in Dubai, you’ll quickly discover one of its biggest draws: there’s no personal income tax. That’s right — expats, entrepreneurs, and freelancers working in Dubai get to keep 100% of their salary.
This guide explains how income and business taxes work in the UAE, what you do (and don’t) pay, and how much you can potentially save compared to the UK.
Is There Income Tax in Dubai?
No, Dubai does not levy personal income tax on residents — including foreign nationals. This makes it one of the most tax-attractive locations in the world for individuals.
Here’s how tax in Dubai compares with the UK:
| Country | Personal Income Tax | Capital Gains Tax |
|---|---|---|
| UK | Up to 45% | Yes |
| Dubai | 0% | No |
Whether you’re a remote worker, business owner, or employee — you won’t pay any income tax on your earnings in Dubai.
What Taxes Do You Pay in Dubai?
While income tax in Dubai is non-existent for individuals, here are the other taxes that do apply:
- ✅ 0% Personal Income Tax
- 🏢 9% Corporate Tax (applies from June 2023, on profits above AED 375,000)
- 🛍️ 5% VAT on goods and services
- 🚫 No Capital Gains Tax
- 🚫 No Inheritance Tax
Overall, tax in Dubai remains light compared to most Western countries — particularly when it comes to personal finances. This is what makes Dubai one of the world’s most desirable tax free jurisdictions.
How to Calculate Income Tax Savings
Wondering how to calculate income tax savings when moving to Dubai? Here’s a simple comparison:
| Income Level | Tax in UK (est.) | Tax in Dubai | Savings |
|---|---|---|---|
| £50,000 | ~£10,500 | £0 | ~£10,500 |
| £70,000 | ~£21,000 | £0 | ~£21,000 |
| £100,000 | ~£35,000 | £0 | ~£35,000 |
You could be saving tens of thousands of pounds per year by relocating to Dubai. These savings can go into investments, property, or business growth — tax-free.
Who Benefits Most from Dubai’s Tax System?
Dubai’s tax framework is particularly attractive to:
- Entrepreneurs setting up businesses in the UAE
- High-earning professionals who want to retain more income
- Freelancers and consultants working remotely
- Investors with global assets who benefit from no capital gains tax
If you’re in one of these categories, you may also be eligible for a Dubai Golden Visa or can set up your own company through business setup in Dubai.
Is Dubai Really Tax Free?
Dubai is often referred to as a tax free city — but this mainly applies to personal income. Here’s what that really means:
- ✅ Yes – No tax on your salary or freelance income
- ✅ Yes – No tax on investment gains or inheritance
- ⚠️ No – VAT (5%) applies on goods and services
- ⚠️ No – Corporate tax applies to business profits from 2023
In summary, while Dubai isn’t entirely tax free, its personal tax regime is as close as it gets.
Set Hub’s Role in Business & Tax Planning
At Set Hub, we help UK expats and international entrepreneurs make the most of Dubai’s tax-friendly environment. Our services include:
- ✅ Business setup in Freezones or Mainland
- ✅ Golden Visa consultation and processing
- ✅ Tax residency certificate assistance
- ✅ Ongoing visa and document support
Whether you’re building a company or simply want to reduce your tax liability legally, we’re here to guide you through the process — from paperwork to planning.
Contact Set Hub today for expert advice.
Conclusion
Dubai’s 0% income tax policy is a game-changer for expats, freelancers, and business owners alike. With smart planning, you can unlock major savings and build a stronger financial future in the UAE.
Ready to take the next step?
Contact Set Hub today for a free consultation and start your Dubai tax journey with confidence.
