The United Arab Emirates (UAE) is widely recognised as a tax-free jurisdiction for individuals — there is currently no personal income tax, no capital gains tax, and no inheritance tax on residents or citizens. This favourable environment makes the UAE one of the most attractive destinations for expatriates, entrepreneurs, and global professionals seeking tax-efficient residency.
For many expats moving to Dubai, Abu Dhabi, or other Emirates, one of the first questions is:
👉 “Can I become a tax resident in the UAE, and what does that mean for my home country’s taxes?”
The answer is not as simple as just holding a UAE residence visa or renting an apartment. Before applying for UAE tax residency, it is crucial to check whether your home country (or passport country) has a Double Taxation Avoidance Agreement (DTAA) with the UAE. These treaties govern which country has the right to tax your worldwide income — and under what conditions.
Even if the UAE recognises you as a tax resident, your home country may impose stricter requirements such as:
- Minimum physical presence abroad (e.g. 183 days).
- Breaking tax ties like home ownership or family residence.
- Proving economic and personal centre of life abroad.
At Exval, we guide expats through both the UAE tax framework and their home country’s treaty rules — to ensure compliance and prevent unexpected tax liabilities.
1. Why Double Tax Treaties Matter
The UAE has signed more than 140 double tax treaties worldwide, making it one of the most connected jurisdictions globally. These agreements override domestic residency definitions and are the foundation for proving tax residency abroad.
For example:
- A German or UK expatriate may only be recognised as a UAE tax resident if they spend at least 183 days per year in the UAE and maintain a permanent home there.
- Without meeting these thresholds, your home country might still claim taxing rights over your income, even if the UAE issues you a Tax Residency Certificate.
🔑 Tip: Always review the specific treaty between the UAE and your home country before making residency or relocation plans. The UAE Federal Tax Authority (FTA) publishes details on tax treaties at www.tax.gov.ae.
2. What Is Tax Residency in the UAE?
According to Cabinet Decision No. 85 of 2022 and subsequent FTA guidelines, an individual is considered a UAE tax resident if they meet any of the following conditions:
- Centre of Life Test: The person’s main residence and centre of financial and personal interests is in the UAE.
- 183-Day Rule: The person has been physically present in the UAE for 183 days or more in a rolling 12-month period.
- 90-Day Rule: The person has been in the UAE for at least 90 days in a rolling 12-month period, and is either:
- A UAE or GCC national, or
- A foreigner with a valid UAE residence permit,
and they have either: - A permanent place of residence in the UAE, or
- Employment or business activity in the UAE.
This flexible approach benefits expats but must still align with treaty conditions to avoid dual-residency conflicts. For instance, if you rely only on the 90-day rule but spend most of your time in your home country, your native tax authority may continue to treat you as a domestic resident and claim taxing rights.
3. Tax Residency Certificate (TRC) – Why It Matters
The Tax Residency Certificate (TRC) — also known as the Tax Domicile Certificate — is the official proof of tax residency issued by the UAE Federal Tax Authority (FTA).
The FTA issues two types of TRCs:
- Domestic Tax Residency Certificate – for use within the UAE, typically for internal administrative or regulatory purposes.
- Treaty Tax Residency Certificate – for application of Double Tax Treaties (DTAs) with other countries.
➡️ For expatriates, the treaty-based TRC is the most important. This is the certificate required when dealing with foreign tax authorities, to claim treaty benefits, avoid double taxation, and prove relocation of tax residency.
However, a TRC alone may not always be enough. Many countries require additional proof such as:
- At least 183 days physical presence.
- A UAE residential lease agreement (Ejari) or property deed.
- UAE bank account statements.
- Local utility bills or employment contracts.
4. Required Documents for a Treaty TRC
To apply for a TRC for treaty purposes, applicants must provide the following:
- Valid passport copy and UAE residence visa.
- Emirates ID.
- Proof of residential lease agreement (Ejari) or property ownership in the UAE.
- UAE bank statements covering at least six consecutive months.
- Salary certificate (if employed) or trade licence (if self-employed).
- Entry/exit report issued by the Federal Authority for Identity and Citizenship confirming actual days spent in the UAE.
5. Application Process and Fees
Applications are made online through the FTA e-services portal:
- Register for an account on the FTA platform.
- Submit required documents electronically.
- Pay the application fees directly through the portal.
- The FTA will review the submission and may request clarifications.
- If approved, the TRC is issued electronically and is valid for one year.
Fees (as of 2025):
- AED 50 – Application submission.
- AED 500 – Administrative review.
- AED 1,000 – Certificate issuance.
💡 Important: For treaty purposes, applicants must show at least 183 days physical presence in the UAE during the relevant 12-month period. Without this, most home-country tax authorities will not recognise the TRC.
6. Common Misunderstandings About UAE Residency
- Residence visa ≠ Tax residency: Simply holding a UAE residence visa does not automatically make you a tax resident.
- 183 days is the international standard: Spending less than 183 days in the UAE typically does not qualify for treaty benefits, unless very specific conditions apply.
- Your home country’s view matters most: Countries like Germany, the UK, and France may not accept a UAE TRC without strong supporting evidence of permanent relocation.
7. How Exval Helps Expats
At Exval, we specialise in supporting expatriates with UAE tax residency:
- Analysing whether UAE residency protects you under your home country’s tax treaty rules.
- Assisting with TRC applications and ensuring documentation is complete.
- Providing accounting, bookkeeping, and tax compliance services to keep you fully aligned with UAE law.
- Advising on structuring residence, property ownership, and employment to strengthen your residency claim.
8. Key Considerations Before Moving to the UAE
Before relocating, expats should:
- Review exit tax rules in their home country (some countries tax individuals when leaving).
- Understand that while the UAE does not levy personal income tax, home-country obligations may still apply.
- Prepare supporting documentation early (lease agreements, bank accounts, utility bills).
- Plan to spend at least 183 days per year in the UAE if you want treaty recognition of residency.
9. Conclusion
Becoming a UAE tax resident in 2025 is a highly attractive option for expats, offering access to one of the world’s most favourable tax environments. However, achieving international recognition of residency requires careful planning, compliance with FTA rules, and alignment with your home country’s tax treaty.
The Tax Residency Certificate (TRC) is the official document proving residency, but for treaty purposes, applicants must also provide strong supporting evidence and meet the 183-day rule.
📌 To learn more, book a free consultation with Exval or visit the official UAE Federal Tax Authority (FTA) website.