“Zero tax in the UAE” is the headline that brings many investors and founders here — and it is partly true, partly out of date. Since 2023 the picture has changed, and in 2026 it is more nuanced than a slogan. As a buyer-side advisory platform, here is what is actually true, what changed, and what it means for a property investor or a business owner — with the official source for each point, so you can verify it rather than take our word for it.
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True: there is no personal income tax
The UAE levies no federal personal income tax on salaries, wages or personal investment income. For an individual, rental income and capital gains on property held in a personal capacity are not taxed. This is the real foundation of the “0% tax” reputation, and it has not changed. Income from a licensed business activity is a different matter — see corporate tax below.
New since 2023: a 9% corporate tax
Under Federal Decree-Law No. 47 of 2022, the UAE introduced a federal corporate tax, effective for financial years starting on or after 1 June 2023. The rates are straightforward:
- 0% on taxable profit up to AED 375,000;
- 9% on taxable profit above AED 375,000.
It applies to companies, and to individuals carrying on a licensed business whose turnover exceeds the small-business threshold. A salaried employee is not caught; a company making a profit is.
The free-zone case: 0% under conditions
Free-zone companies can still benefit from 0% — but only as a Qualifying Free Zone Person (QFZP), on qualifying income, and only if the conditions are met: adequate economic substance in the zone, qualifying activities, respecting the de-minimis limits on non-qualifying income, and keeping audited financial statements. Miss a condition and the 9% rate applies. “Free zone” is therefore not an automatic 0% — it is a regime with rules.
VAT: 5%
A 5% value-added tax has applied since 2018 (Federal Decree-Law No. 8 of 2017). For property specifically: the first supply of a new residential property is zero-rated and subsequent residential sales and leases are generally exempt, while commercial property is standard-rated at 5%. Note that the 4% Dubai Land Department transfer fee on a purchase is a registration fee, not VAT.
What changed in 2026 — and what still does not exist
From January 2025 the UAE introduced a Domestic Minimum Top-up Tax (DMTT) of 15%, but only for very large multinational groups (consolidated revenue of at least EUR 750 million), in line with the OECD global minimum tax. It does not touch an ordinary property investor or an SME. What still does not exist: no personal income tax, no capital gains tax on personal investments, and no federal inheritance tax.
Summary
| Tax | Rate | Applies to |
|---|---|---|
| Personal income | 0% | salaries, personal investment income |
| Capital gains (individual) | 0% | property held personally |
| Corporate tax | 0% up to AED 375k, then 9% | companies / licensed business profit |
| Free zone (QFZP) | 0% on qualifying income, else 9% | if conditions met |
| VAT | 5% | goods and services; commercial property; residential largely exempt / zero-rated |
| DMTT | 15% | only multinationals, revenue ≥ EUR 750m |
In short
For an individual investing in Dubai property, the “0%” reputation largely holds: no income tax, no capital gains tax, no inheritance tax. The 9% corporate tax and the free-zone conditions matter if you invest or operate through a company — which is exactly where getting the structure right pays off.
Send us the project name. We will tell you what the registry says — no charge, no pitch. Message us on WhatsApp.
FAQ
Do I pay tax on rental income from a Dubai property?
Held personally as an individual, there is no personal income tax on it. Held through a company, it can fall under the 9% corporate tax on profit above AED 375,000.
Is there capital gains tax when I sell?
No capital gains tax for individuals on personal investments. A 4% DLD transfer fee applies at purchase (not on the gain).
Is a free zone really 0%?
Only as a Qualifying Free Zone Person, on qualifying income, with the conditions met. Otherwise the 9% rate applies.
Does the 9% corporate tax affect me as a salaried resident?
No. Salaries are not subject to income tax or corporate tax.
Sources
UAE Federal Tax Authority (FTA); Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses; UAE VAT legislation (Federal Decree-Law No. 8 of 2017); the Domestic Minimum Top-up Tax (effective January 2025). This is general information, not tax advice — confirm your own position with the FTA or a qualified tax advisor. Verified October 2026.