Moving to Dubai the situation concerning tax in Dubai
If you are considering moving to Dubai you will no doubt have heard the stories about not having to pay tax in Dubai. Dubai itself is not tax free but the government has created a number of economic free zones which mean overseas investors need not pay tax. Similarly, freedom from income tax is applied throughout the city and when it comes to the sale of property, Dubai is also tax-free.
Instances when tax in Dubai does apply
If you are moving to Dubai you should be aware that tax is applied sometimes. For example:
- Corporation Tax in Dubai Paid by international banks and energy companies only.
- Leisure Tax in Dubai A 10% tax is incurred on services provided by hotels.
- Haraam Tax in Dubai Meaning forbidden. A 30% charge is added to the price of alcohol.
Property, Dubai and tax
There are no government taxes, such as stamp duty or transfer tax payable when you purchase Dubai property. Dubai does not apply capital gains tax on property sold for profit either. Although you will need to pay a 1.5% land registry fee for the lands department to register the title of your property, Dubai is otherwise free of taxation for real estate transactions.
If moving to Dubai is an option, the situation concerning, property, Dubai and tax may make up your mind for you.
Income tax in Dubai
Although Income Tax in Dubai is not directly applied, your worldwide income could become liable to taxation if you are a national of another country. Seeking specialist advice on tax before moving to Dubai can help avoid this situation.
Introduction of tax in Dubai
It has been rumoured that the UAE may introduce a value added tax (VAT) within a few years. Even if this is the case, this type of tax in Dubai is likely to be far lower than in other countries and moving to Dubai would still be an attractive financial proposition. With no tax on your income or property, Dubai will remain a cheap place to relocate to.
