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Updated May 2023
While the idea of working in other countries may be tempting for some people, many others may be hesitant to pursue their careers abroad due to potential difficulties they may face while working there. One of their concerns is the possibility of having to pay high income tax.
Are you interested in working in the UAE? Here is everything you need to know about the UAE income tax in 2023.
Dubai and the UAE income tax 2023
Expatriates who are searching for employment opportunities in the UAE can rejoice as the UAE government does not impose any income tax on individuals working in the country, including those who work remotely or as a freelancer. This is among the factors that make the UAE an appealing destination for many expats and contribute to its global popularity.
However, to prevent double taxation in their home country, it is recommended that expatriates working in the UAE become tax residents. Becoming a tax resident in the UAE means that they will only be required to pay taxes in the country where they are currently working, and they will not be taxed in their home country.
In the UAE, individuals will be classified as tax residents if at least one of the following conditions are met:
- UAE is their primary residence and center of interest, regardless of their duration of stay.
- They fulfill certain requirements and qualifications set by the Minister.
- They have stayed in the UAE for at least 183 days within a 12-month period.
- They have a permanent residence, work, or business location in the UAE and have spent at least 90 days there in a 12-month period. This applies only to UAE/GCC citizens or those with a valid UAE residency permit.
Other benefits of working in the UAE
Other than its tax-free income regulation, the UAE is a popular destination for expats due to its ample job opportunities, secure living environment, world-class career options, modern social and economic infrastructure, and numerous visa benefits. Let’s delve deeper into each of these factors and explore why the UAE is such an attractive destination for expats seeking rewarding job opportunities and a high quality of life.
Safe and secure environment
When considering working abroad, safety and security are two of the most important factors that should be taken into consideration. One of the main reasons the UAE is a popular destination for expats is due to its safe and secure environment. With one of the lowest crime rates and highest security measures, the UAE is currently ranked as the second safest country in the world.
Visa and permits
One of the reasons why Dubai and the UAE are popular among expats as a work destination is due to their numerous visa benefits. The UAE offers various visas and entry permits, such as job seeker visas and permits for temporary work missions.
Please refer to our article below for more information regarding visas and permits for workers in the UAE.
Incredible remote working opportunities
Dubai is home to residents from around 190 different nationalities and offers a haven for remote workers. To make things easier for expats who wish to work remotely in the UAE, the country provides a remote work visa or a 1-year visa, which allows holders to relocate to Dubai from outside the UAE and legally work for their current company or organization remotely.
The 1-year visa is specifically designed to facilitate remote workers, entrepreneurs, and other location-independent individuals who have the inclination to live and work in Dubai.
Plethora of employment opportunities
One of the main reasons why expats move to Dubai and the UAE is because of the numerous job opportunities available. The UAE offers incredible job opportunities in various sectors, including finance, healthcare, education, hospitality, construction, government firms, marketing, and more, which attracts expats from all over the world.