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For Brits moving abroad
Working or running a business in Dubai as a Brit
Zero personal income tax, and a visa for remote workers
Key facts
Personal income tax: none
Corporate tax: 0% up to AED 375,000 profit, 9% above
Remote work visa: 1 year, US$3,500 a month income
Citizenship: no, nomination only
Why set up a business here?
Dubai suits Brits who want to keep more of what they earn. There's no personal income tax, it's in a time zone that overlaps with both the UK and Asia, and it's built around small companies, with dozens of free zones designed for foreign owners.
The trade-off is cost. Rent, schooling and company running costs are high, so the tax saving only pays off once your income is big enough.
Business and entrepreneur visas
The main long-term route for business owners and investors is the UAE Golden Visa, a renewable residence visa valid for 5 or 10 years. You don't need a local sponsor, and you can spend long periods outside the UAE without losing it.
In Dubai, entrepreneurs can qualify with a project registered with the Ministry of Economy or a local authority that brings in at least AED 1 million a year. Investors can qualify by putting at least AED 2 million into a UAE company, an investment fund or a deposit with a UAE bank, or by owning property worth at least AED 2 million.
Most people starting smaller get a standard two-year residence visa through their own free zone or mainland company instead.
Digital nomad and remote work visa
Dubai's Virtual Working Programme lets you live in Dubai for a year while you keep working remotely for an employer or business outside the UAE. You don't need a UAE employer or sponsor, and the permit can be renewed.
Who qualifies
You must work for an organisation outside the UAE, doing the work remotely, and earn at least US$3,500 a month (or the equivalent in another currency).
What you need
A passport valid for at least six months
A recent colour photo on a white background
Proof that you work remotely for an organisation outside the UAE, such as an employment contract or employer letter
Proof of income of at least US$3,500 a month
Health insurance that covers you in the UAE
How to apply
It's a two-stage process with Dubai's immigration authority, GDRFA Dubai. First you apply for the virtual work entry visa. Once you're in Dubai, you take a medical fitness test and apply for the virtual work residence permit itself, with your passport, photo, health insurance and proof of remote work. Renewal follows the same document list.
Check current fees and any extra document requests on the GDRFA Dubai website before you apply, as requirements can change.
Setting up a company
In Dubai you choose between two kinds of company: a mainland company or a free zone company. Both can be 100% foreign-owned for most activities, so you no longer need an Emirati partner.
Mainland company
Licensed by Dubai's Department of Economy and Tourism (DET). A mainland company can trade anywhere in the UAE, including directly with local customers and government. Since 2021, foreigners can own 100% of most mainland companies; a small number of strategic activities still carry ownership conditions. You need registered business premises in Dubai.
Free zone company
Licensed by the free zone's own authority, not DET. Free zones allow 100% foreign ownership, full repatriation of profits and no restrictions on moving money out. They suit consultants, online businesses and firms trading abroad. The catch is that selling into the UAE mainland is limited, and income from most mainland dealings doesn't qualify for the 0% free zone tax rate.
The main steps
Pick your business activity, as your licence must match what you actually do
Choose mainland or a free zone
Reserve a trade name and get initial approval
Secure business premises (on the mainland) or a free zone office package
Receive your trade licence
Open a business bank account and apply for residence visas
Register for UAE corporate tax with the Federal Tax Authority
Set-up costs vary widely by free zone, activity and office type, so get written quotes from two or three providers before committing.
Corporate tax
The UAE introduced a federal corporate tax for financial years starting on or after 1 June 2023. It applies to mainland and free zone companies alike, so Dubai is no longer a zero-tax place for businesses.
The rates
0% on taxable profit up to AED 375,000
9% on taxable profit above AED 375,000
Free zone companies
A free zone company that counts as a Qualifying Free Zone Person can pay 0% on its qualifying income, whatever the amount. To keep that rate it has to meet substance and reporting conditions in its free zone. Income from excluded activities, and most income from dealing with the UAE mainland, is taxed at the normal 9%. Lose the qualifying status and all profit falls back under the standard rates.
Registering and filing
Every company must register for corporate tax with the Federal Tax Authority, even if its profit is below AED 375,000 or it expects to pay 0%. Free zone companies must still file tax returns.
Corporate tax rules are new and still being refined, so check the Federal Tax Authority's guidance or speak to a UAE tax adviser before choosing your structure.
Leaving UK tax behind
Tax in Dubai
There's no personal income tax in the UAE. Salary, dividends you pay yourself, interest and capital gains aren't taxed locally.
Leaving UK tax behind
Moving to Dubai doesn't end UK tax by itself. You stop being UK tax resident only when you meet HMRC's Statutory Residence Test, which looks at how many days you spend in the UK and the ties you keep there, such as a home, family or work. In the tax year you leave, split-year treatment may let you be taxed as a UK resident only for the part of the year before you left.
What the UK can still tax
Even after you leave, income that comes from the UK can still be taxed there. The most common example is rent from a UK property.
The UK–UAE tax treaty
The UK and the UAE have a double tax treaty, which decides which country can tax income that touches both. To use it, you may need a UAE tax residency certificate.
Getting this wrong can be expensive, so speak to a UK tax adviser before you move.
Banking and moving your money
Personal bank account
To open a personal account in the UAE you'll normally need your residence visa and Emirates ID, so most people open one once their visa is done. Many banks ask for a minimum balance or a minimum salary, and these vary from bank to bank.
Business bank account
Opening a business account is usually the slowest part of setting up. Banks carry out detailed checks and typically ask for your trade licence, company documents, proof of address, and evidence of what the business does and where its money will come from, such as contracts, invoices or a business plan. Expect it to take weeks rather than days, and some applicants are turned down, so it's worth applying to more than one bank.
Moving money from the UK
High-street banks often give poor exchange rates on transfers to the UAE. A specialist currency transfer provider usually gets you a better rate and lower fees, which adds up on larger sums like a deposit or start-up capital.
Keep a UK account
It's worth keeping a UK bank account open after you move, for UK income, pensions and paying any UK bills. Tell your bank you've moved abroad, as some restrict accounts for non-UK residents.
Watch-outs
Your visa depends on your business
If you're on a residence visa sponsored by your own company, it relies on your trade licence. Let the licence lapse or close the company, and your visa goes with it.
Don't stay away too long
A standard UAE residence visa can be cancelled if you stay outside the country for more than six months at a time. The Golden Visa is the exception, as it lets you spend longer away.
It's not tax-free for every business
Corporate tax is 9% on profit above AED 375,000, and free zone status only protects qualifying income. There's also 5% VAT, and businesses must register once their taxable sales pass AED 375,000 a year. Missing a registration or filing deadline can bring penalties.
High costs
Rent, school fees, health insurance and licence renewals add up. The tax saving only pays off if your income is high enough to cover them.
Banking takes time
Business accounts can take weeks to open and some applications are refused. Plan for this before you need to start trading.
No passport at the end
Living in Dubai, however long, doesn't lead to UAE citizenship. You stay a resident only as long as your visa lasts.
Check the rules on medicines
Some prescription and over-the-counter medicines that are legal in the UK are controlled in the UAE. Check before you travel with any medication.
Path to citizenship
Can you become a UAE citizen?
Not by applying. There's no route where you live in Dubai for a set number of years and then apply for a passport. UAE citizenship is granted only to people nominated by the authorities, such as the Rulers' Courts, the Crown Prince courts, executive councils or the Cabinet.
Who gets nominated
Since changes made in 2021, nomination is open to a small number of foreigners with exceptional skills or value to the country, such as investors, entrepreneurs, scientists, doctors, inventors and artists. You can't put yourself forward, and there's no published checklist that guarantees selection.
Keeping your British passport
The UAE generally doesn't allow dual nationality, but people granted citizenship through this nomination route can be allowed to keep their existing nationality. The UK lets British citizens hold another nationality.
Children born in Dubai
Being born in the UAE doesn't make a child Emirati. A child of two foreign parents takes their parents' nationality, not UAE citizenship.
The realistic long-term option
For almost everyone, the closest thing to permanence is the Golden Visa: a renewable 5- or 10-year residence visa that lets you spend long periods outside the UAE without losing it. It gives you security to live and work in Dubai, but it isn't citizenship and it doesn't lead to it.