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Is Dubai really tax free?

Tax in Dubai | Dubai has become a center for business, tourism and expatriates in recent years. One of the city’s most attractive features is its reputation as a tax-free zone. But many people are still unsure about the specifics of Dubai’s tax system.

There are taxes and fees (“fees”) that apply to people and businesses in Dubai. Let’s take a closer look at some of these.Er zijn belastingen en toeslagen (“fees”) die van toepassing zijn op mensen en bedrijven in Dubai. Laten we een aantal hiervan nader bekijken.

Value Added Tax (VAT)

VAT is a type of consumption tax that is added to the price of goods and services. The UAE introduced a 5% VAT in 2018 and it applies to most goods and services.

Corporate Tax (Corporate Tax)

While there is no income tax in Dubai, there is a corporate tax applicable to certain industries. From June 2023, Dubai will introduce a corporate tax rate of 0% for taxable income up to AED 375,000 and 9% for taxable income above AED 375,000 (Introduction about Corporate Tax)


In addition to the taxes described above, individuals and businesses in Dubai may encounter other surcharges “fees”. For example, there is a municipal contribution that applies to homes and there are fees for facilities such as water and electricity.

Would you like to know more about taxes in Dubai or are you curious about which taxes you will have to deal with? Book a free consultation