For individuals, the UAE levies no personal income tax. Day-to-day consumption is taxed with a 5% VAT (among the lowest globally). For companies, a federal corporate tax of 9% applies to profits above AED 375,000 (for financial years starting on/after 1 June 2023), with a domestic 15% top-up for very large multinationals under the OECD rules from 2025.
For most high-earning professionals and entrepreneurs, that means more post-tax income to deploy into assets—most visibly, premium freehold real estate.
Quick comparison: headline levers that attract movers
|
Policy lever |
UAE (2025) |
Typical high-income jurisdictions |
|---|---|---|
|
Personal income tax |
0% |
20–45%+ top rates are common |
|
VAT / sales tax |
5% standard |
5–25% in many OECD markets |
|
Corporate tax |
0% up to AED 375k; 9% above (standard regime) |
15–30% typical |
|
MNE minimum tax |
15% DMTT (from 2025) |
Also adopting OECD 15% |
Sources: UAE Government & Ministry of Finance portals.
Homesae takeaway: lower personal tax + predictable business tax = higher investable cash flow, which supports home purchases, second homes, and rental investments across Abu Dhabi, Sharjah, Ajman, UAQ, and Ras Al Khaimah.
Hard numbers: how many people are moving to the UAE?
Authoritative UN/World Bank data show strong net migration into the UAE since 2021 (net inflow = immigrants minus emigrants):
|
Year |
Net migration (people) |
|---|---|
|
2021 |
421,663 |
|
2022 |
322,773 |
|
2023 |
300,004 |
|
2024 |
278,439 |
Sources: UN DESA/World Bank net-migration series (country pivot & 2024 values).
And at the top end of the market, UAE led the world for millionaire migration in 2024 (estimated 6,700 HNWIs relocating), reflecting the pull of low personal taxes and investor-friendly visas.
Why taxes translate into property demand (and price growth)
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Higher take-home pay → larger purchase budgets. Zero personal income tax means more cash for deposits and mortgage servicing—especially compelling for professionals priced out of prime Dubai.
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Business setup & exit remain efficient. A clear 9% corporate regime (with well-signposted 15% rules for MNEs) has reduced policy uncertainty, encouraging SMEs and family offices to base operations here—and house teams here.
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Low VAT supports everyday affordability. Compared to higher-VAT countries, the cost of living impact is muted at the margin, making relocation more sustainable for families and mid-career movers.
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Visa reforms + lifestyle infrastructure (schools, healthcare, air links) amplify the tax edge, turning the UAE into a long-term home base—not a stopover. (See also sustained Dubai/RAK population and tourism growth trends.)
What this means for investors right now
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Demand depth is broadening beyond Dubai. Net inflows since 2021 are rippling into Abu Dhabi (Saadiyat/Jubail), Sharjah (Aljada/Masaar), Ajman (Al Zorah), UAQ (Siniya Island) and RAK (Al Marjan/Mina Al Arab)—all with lower entry PSF than Dubai’s prime.
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Capital-gain runway: If net migration stays positive, new households + corporate relocations should keep tightening quality stock in these emirates—especially waterfront and master-planned communities.
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Strategy: prioritize 5–8 year holds near job nodes, schools, and lifestyle anchors; mix one “yield engine” (Ajman mid-market) with one “re-rating bet” (RAK/UAQ waterfront) for balanced upside.
FAQs we handle for clients
“Isn’t corporate tax new—doesn’t that blunt the advantage?”
Not for most founders/SMEs. The 0%/9% tier is still competitive, and there’s no personal income tax on dividends/salaries at the individual level. The 15% DMTT mainly affects very large multinationals.
“Will low taxes change?”
Policy has moved toward international alignment on corporates, while personal income tax remains 0% per official guidance. Homesae monitors official sources and structures investment plans accordingly.
Work with Homesae
Relocating or expanding a team to the UAE? Homesae can map tax-efficient housing and capital-growth hotspots tailored to your income, school/commute needs, and target returns.
→ Request your UAE Relocation & Investment Brief
Includes PSF benchmarks, 5-year ROI scenarios, and off-plan vs. resale comparisons in Abu Dhabi, Sharjah, Ajman, UAQ & RAK.
Sources (selected)
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UAE Government & Ministry of Finance: no personal income tax, VAT 5%, corporate tax (0% ≤ AED 375k; 9% > AED 375k; effective FYs starting ≥ 1 June 2023).
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OECD 15% minimum tax (UAE DMTT) applicable to large MNEs from 2025.
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Net migration (annual): UN DESA/World Bank country table and regional list for 2021–2024.
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HNWI migration estimate (Henley & Partners via media): 6,700 millionaires to UAE in 2024.
