.png)
For Brits moving abroad
Working or running a business in Umm Al Quwain as a Brit
A quiet emirate with a low-cost free zone
Key facts
Personal income tax: none
Corporate tax: 0% up to AED 375,000 profit, 9% above
VAT: 5%
Remote work visa: 1 year, US$3,500 a month income
Citizenship: no, nomination only
Why set up a business here?
Umm Al Quwain is one of the smallest and quietest emirates, on the coast between Ajman and Ras Al Khaimah. Its free trade zone is often chosen by people wanting a simple, low-cost UAE licence.
You get the same UAE tax position as Dubai, with no personal income tax, in a much quieter setting.
Business and entrepreneur visas
Golden Visa
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.
Investors can qualify by putting at least AED 2 million into a UAE company, an approved investment fund or a deposit with a UAE bank, or by owning property worth at least AED 2 million. Entrepreneurs with an approved project can also qualify; check the current conditions before you apply.
Company-sponsored residence visa
Most people starting smaller get a standard two-year residence visa through their own mainland or free zone company. Free zone packages usually include a set number of visas.
Digital nomad and remote work visa
The UAE's virtual work (remote work) visa lets you live in the country for a year while you keep working for an employer or business outside the UAE. You don't need a UAE sponsor, and it can be renewed.
Who qualifies
You must work remotely for an organisation outside the UAE 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
Proof that you work remotely for an organisation outside the UAE
Proof of income of at least US$3,500 a month
Health insurance that covers you in the UAE
How to apply
Outside Dubai, the visa is handled by the federal immigration authority, ICP. Check its website for current fees and documents before you apply.
Setting up a company
Most activities allow 100% foreign ownership, so you don't need an Emirati partner.
Mainland company
Licensed by Umm Al Quwain's economic department. A mainland company can trade anywhere in the UAE.
Free zone
Umm Al Quwain Free Trade Zone covers general trading, services and e-commerce, with simple office packages.
The main steps
Pick your business activity
Choose mainland or a free zone
Reserve a trade name and get initial approval
Secure your premises 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
Costs vary widely by zone and package, so get written quotes from two or three providers before committing.
Corporate tax
Umm Al Quwain uses the same federal corporate tax as the rest of the UAE, for financial years starting on or after 1 June 2023.
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, as long as it meets substance and reporting conditions. Income from excluded activities, and most income from the UAE mainland, is taxed at 9%.
VAT
VAT is 5% on most goods and services.
Every company must register for corporate tax with the Federal Tax Authority, even if it expects to pay 0%.
Leaving UK tax behind
Tax in Umm Al Quwain
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 Umm Al Quwain 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. In the tax year you leave, split-year treatment may apply.
What the UK can still tax
Income from the UK, such as rent from a UK property, can still be taxed there after you leave.
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. You may need a UAE tax residency certificate to use it.
Speak to a UK tax adviser before you move.
Banking and moving your money
Personal bank account
You'll normally need your residence visa and Emirates ID to open a personal account. Many banks set a minimum balance or salary.
Business bank account
Opening a business account is often the slowest part of setting up. Banks run detailed checks and ask for your trade licence, company documents and evidence of where the business's money comes from. Expect weeks rather than days, and apply to more than one bank.
Moving money from the UK
A specialist currency transfer provider usually beats high-street banks on exchange rates and fees.
Keep a UK account
Keep a UK account open for UK income, pensions and bills, and tell your bank you've moved abroad.
Watch-outs
Very quiet
Umm Al Quwain has limited shops, schools and nightlife. Most residents travel to Sharjah or Dubai for those.
Distance from Dubai
It's around an hour from Dubai by road, depending on traffic.
Your visa depends on your business
A residence visa sponsored by your own company relies on your trade licence. If the licence lapses, the visa goes with it.
Don't stay away too long
A standard UAE residence visa can be cancelled if you're outside the country for more than six months at a time. The Golden Visa lets you stay away longer.
It's not tax-free for every business
Corporate tax is 9% on profit above AED 375,000, and VAT is 5%. Missing a registration or filing deadline can bring penalties.
Check the rules on medicines
Some medicines that are legal in the UK are controlled in the UAE. Check before you travel.
Path to citizenship
Can you become a UAE citizen?
Not by applying. There's no route where you live in Umm Al Quwain for a set number of years and then apply for a passport. UAE citizenship is granted only to people nominated by the authorities.
Who gets nominated
A small number of foreigners with exceptional skills or value to the country, such as investors, entrepreneurs, scientists, doctors and artists. You can't put yourself forward.
Keeping your British passport
The UAE generally doesn't allow dual nationality, but people granted citizenship by nomination can be allowed to keep their existing nationality.
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. It isn't citizenship and doesn't lead to it.