Why Dubai attracts people in 2026
Three arguments keep coming back: no income tax on individuals, a business hub connected to the whole world, and a very safe place to live. For an entrepreneur billing internationally, no longer paying personal tax on their income is obviously the driver.
The trade-offs are worth stating up front: the cost of living is high, starting with rent; the company has to be maintained every year; and Dubai does not lead to a second passport. Above all, getting a UAE visa does not settle your tax situation back home. More on that below.
Four ways to become a resident
Free zone company + partner visa
The most common route. You set up a company in a free zone, which sponsors you as a partner. A 1- to 3-year visa depending on the type, renewable, with no property purchase.
Investor Green Visa (5 years)
For a partner holding at least AED 1 million (about $272,000) in shares of a UAE company. No sponsor needed, and you can sponsor your family.
Golden Visa (5 or 10 years)
From AED 2 million (about $545,000) invested, in property or investments. No sponsor, family included, and the visa stays valid beyond six months abroad.
Remote work visa
To live in Dubai while working for a company based outside the UAE, with an income of at least $3,500 a month and health insurance.
UAE visas have been reformed several times in recent years. The amounts and durations on this page come from official sources, checked in September 2026 (see the sources at the bottom), and are checked again when your file is prepared. The dirham is pegged to the US dollar (about 3.67 dirhams per dollar), hence the conversions.
The company route, step by step
- Choose the free zone and the activity. Each free zone has its own permitted activities, fees and office rules: the right choice depends on what you bill.
- Set up the company. Trade licence, articles and an office, often just a shared desk (a "flexi-desk").
- Open the visa file. The company's establishment card, then the entry permit for its partner.
- Spend a few days in the UAE. Medical test and biometrics for the Emirates ID, the residents' identity card.
- Receive the visa and the Emirates ID. You are a resident, and you can then sponsor your family under the rules in force.
- Open the bank account. Often the slowest step: UAE banks review the company, the activity and the source of funds in detail.
In practice, allow about two months from the first documents to the bank account, for a single trip of a few days to the UAE. Then, every year: licence and office renewal, a corporate tax return, and health insurance, which is mandatory for Dubai residents.
What it costs
The budget mostly depends on the free zone you choose: each one sets the price of its licence, its offices and the visas it issues. On top of that come visa and Emirates ID fees, the medical test, health insurance, bookkeeping and, if you aim for the 0% free zone rate, an annual audit of the accounts.
Fees change often and depend on your activity, the number of partners and your family. Rather than a posted price that ages badly, we send you a complete, current quote on WhatsApp, official fees and support included.
Taxes, in plain terms
For you, personally
The UAE does not levy income tax on individuals. VAT, on the other hand, is 5% on most purchases.
For your company
Since 2023, companies pay corporate tax: 0% on taxable income up to AED 375,000 (about $102,000) and 9% above. Every company must register with the tax authority and file a return, free zone companies included.
A free zone company only pays 0% on its so-called qualifying income, and only if it keeps real substance in the zone, has its accounts audited, documents its transfer pricing and keeps its other revenue below 5% of turnover (and never above AED 5 million). The rest is taxed at 9%, without the AED 375,000 allowance. A company that misses a condition loses the regime for the current year and the next four. For a service business billing clients abroad, you therefore need to check case by case whether the income qualifies: if not, the standard regime applies.
Becoming a UAE tax resident
Under UAE rules, you are tax resident if you spend at least 183 days in the UAE over 12 months, or at least 90 days if you hold a residence permit and have a permanent place of residence or a job or business there. You also are if the UAE is your usual place of residence and the centre of your interests. Every day of presence counts, even a partial one. The tax residency certificate is then requested from the tax authority (FTA).
Your home country: the part people forget
Your home country applies its own rules. Many look at where your home, family, work and economic interests are; others count days, like the UK's statutory residence test. Some charge an exit tax when you leave. And US citizens are taxed on their worldwide income wherever they live: Dubai residency does not remove US tax, although the foreign earned income exclusion may reduce it. Then the tax treaty between your country and the UAE, if there is one, settles cases of dual residency.
This part is prepared before you move, with a tax adviser in your home country. We can help you frame the questions to ask.
What about your US LLC?
A US LLC remains useful to get paid by US clients or to open Stripe. But once you are a Dubai resident, two questions arise: is the UAE company enough for your business, and where is your LLC really managed from? UAE law can indeed treat a foreign company managed from the UAE as resident for corporate tax. We help you choose: LLC, UAE company, or both.
Dubai, Paraguay or Panama?
| Criterion | Dubai | Paraguay / Panama |
|---|---|---|
| Tax on your foreign income | No income tax | 0% (territorial tax) |
| Cost of living | High | Moderate |
| Path to a second passport | No | Yes, eventually |
The two Latin American options in detail: Paraguay vs Panama, which residency to choose.
Company, visa, bank account and insurance
A first conversation with us to frame your plan, then our partners on the ground for the execution. Message us: we reply with a quote tailored to your situation.
Who Dubai makes sense for, and who it doesn't
✅ A good fit if
- You are an entrepreneur or freelancer and plan to actually live in Dubai for a good part of the year
- Your income can absorb a high cost of living
- Your business suits a free zone company (services, e-commerce, trading…)
❌ Less suitable if
- Your life stays in your home country: you will most likely remain tax resident there
- You want a second passport: look at Paraguay or Panama
- Your budget is tight: Georgia or Paraguay cost far less to live in
FAQ: Dubai residency
Can you get residency by setting up a company?
Yes, it is the most common route: a free zone company sponsors you as a partner. A 1- to 3-year visa depending on the type, renewable, with a few days in the UAE for the medical test and biometrics.
Do you pay tax in Dubai?
No income tax on individuals. The company pays 0% up to AED 375,000 of profit and 9% above, and 0% in a free zone only on qualifying income, under conditions. VAT at 5%.
How many days to become a UAE tax resident?
183 days over 12 months, or 90 days with a residence permit and a permanent home or a business in the UAE. The certificate is requested from the tax authority (FTA).
Do I stop paying tax at home?
Not automatically. Your home country applies its own residency rules, some charge an exit tax, and US citizens stay taxed on worldwide income. Prepare it before you move.
Do you need to invest to get a visa?
No property purchase for the standard partner visa. Green Visa (5 years): AED 1 million in shares. Golden Visa (5 or 10 years): AED 2 million invested.
Official sources
Checked on 25 September 2026.
- UAE government portal (u.ae): general rules for the residence visa (durations, more than 180 days abroad), Green Visa, Golden Visa, remote work visa, corporate tax, no income tax on individuals
- Dubai residency directorate (GDRFA): investor or partner Green Visa (AED 1 million in shares)
- UAE Ministry of Finance: tax residency of individuals (Cabinet Decision No. 85 of 2022)
- Federal Tax Authority (FTA): free zone companies bulletin (PDF)
- Home country examples: IRS, foreign earned income exclusion (US citizens), HMRC, statutory residence test (UK)
Go further
- All our residency guides by country
- Paraguay vs Panama: two territorial countries, with a passport at the end
- Open a Wyoming LLC remotely: the US company side in detail