_The Wealth Report City Series | Dubai Edition | Tax Talk

To have the right to reside in the UAE, you must have a valid residence visa and be in the UAE at least once every six months to keep it valid. Neither citizens nor expatriate residents are taxed on income derived from UAE sources and there is no inheritance or gift tax in the UAE.

However, being UAE tax resident does not mean that you would automatically cease to be resident in other countries where you have personal or business interests as tax residence rules are different in every jurisdiction.

Furthermore, in practice, the UAE Ministry of Finance is monitoring people’s ‘day count’ and other ties maintained with the UAE before issuing tax residency certificates. These certificates are important to confirm your UAE tax residence position in case of inquiry by a foreign tax authority.

Value-added tax (VAT) was introduced 1 January 2018 at a standard rate of 5% and applies to commercial real estate transactions and leases. Residential real estate transactions are exempt from the VAT. Being exempt does not mean that VAT should not be considered, as expenses in relation to the property, such as electricity bills or real estate fees, would be subject to VAT.

As for property taxes, there is a transfer fee, which is like a stamp duty and amounts to 4% in Dubai, typically split 2% each way between buyer and seller.