Taxes for Foreign citizens / Expats in Dubai

The UAE is one of the most ethnically diverse countries of the world. The population of the UAE is constantly growing. While in 1951 it counted only about 69 000, nowadays it is more than 9 million people. The number of expatriates working and living in the country is remarkable – more than 7 million people of the UAE’s workforce consists of foreign citizens.

Why does the UAE become the choice of so many people?

First of all, the UAE has very convenient taxation system both for residents and non-residents of the country. Second, it is a very secure state with good quality service, developed healthcare and education systems. The UAE welcomes innovation and is constantly looking for other ways to make the economy of the state more diversified and attractive for foreign citizens. There are about 40 free trade zones with a special taxation regime. Many expat investors find it very attractive and facilitating for business as there is are import and export taxes on the territory of these free zones.

Clear look on the subject of tax in Dubai for expats in detail

The United Arab Emirates and Dubai, in particular, do not impose any major taxes on foreign citizens - residents and non-residents of the country. You won’t be charged income and corporate tax, taxes on dividend and interest and withholding tax. However, there is something you have to know concerning tax in Dubai for expats. There are indirect taxes that are imposed on expatriates.

What taxes do expats have to pay in Dubai?

If you are a traveler visiting Dubai, please, note that hotels will charge you hotel tax in the rate of 7 to 20 dirhams for every night of your stay. When you use one of the Dubai’s airports, you will be charged departure tax which is included into the price of the ticket you purchase. These rules apply for expats from US working in Dubai tax and migrants from other countries of the world.

Another important tax in Dubai for expats is municipality fee. If you rent an apartment in Dubai, 10% municipality tax will be included into your utility bill. Municipal tax is also charged at restaurants – it is added to the bill you get at the end of the meal.

For expats from US working in Dubai there is one major different in terms of taxation – when working and living in Dubai there are no taxes here, but you would still be fully liable to pay your taxes in the USA.

For other foreign citizens / expats living in Dubai – their taxation in their home country would be subject to regulations of the respective country.