UK - UAE Double Tax Treaty: How Meydan Free Zone Helps You Keep More of What You Earn

If you’re a UK entrepreneur or professional, lately it might feel as though you’re building income just to pay the taxman.

In the UK, corporation taxes are climbing, personal income tax bands stretch up to 45%, and inflation is quietly cutting what’s left of your profits. But what if there was a way to simplify the equation where your income, residency, and business structure worked in harmony?

That’s exactly what the UK-UAE Double Tax Treaty is designed for. It gives you the right to shift your income base to Dubai without being taxed twice. Imagine growing your earnings in an ecosystem with 0% income tax, 0% corporate tax on qualifying income, and no capital gains — all within a jurisdiction that attracted 6700 millionaires in the past year.

With Meydan Free Zone, you can get your business license in under 60 minutes, establish your UK-owned business, qualify for UAE tax residency, and globally expand with complete legal clarity and confidence.

Understanding the UK–UAE Double Tax Treaty

Taxes shouldn’t be a guessing game, especially when you want to do business internationally or get a job somewhere where the tax burden doesn’t deplete your income.

That’s why the UK-UAE Double Tax Treaty, signed in 2016 and effective in 2017, was created.

In simple terms: it’s a bilateral agreement between the UK and UAE governments designed to protect individuals and companies from the UK from being taxed on the same income twice when they move to the UAE. This ensures that your income is taxed in only one country, not both. If you establish your business in the UAE through a free zone entity like Meydan Free Zone, the profits generated there are only taxable in the UAE.

Let’s break it down:

• ‍Employment income: If you’re on a work visa in Dubai, this covers the salary or earnings you receive for the work you perform. If you’re a UK business owner in Dubai, what your employees receive is classified here. Employment income is taxed only where you work. So, if you live and work in Dubai, that means UK tax is generally out of scope, and more UK talent can be attracted to your UAE-based company. ‍
• Business profits: This refers to the income your company generates from its operations. Profits are taxed only where your company is legally based. For Meydan Free Zone businesses, you’ll be based in the UAE, where qualifying Free Zone profits are taxed at 0%. But here’s the best part: if your non-qualifying income makes up 5% or less of your total revenue, you’ll still pay 0% corporate taxes. Simply, your Meydan Free Zone business lets you reduce taxes to almost zero, keep 100% business ownership, and repatriate profits easily.‍
• Dividends & royalties: Dividends are profits you take from your own company, and royalties are payments for intellectual property. Under the UK-UAE Double Tax Treaty, both are generally free from withholding taxes, meaning income moves freely between the two countries if conditions are met.‍
• Capital gains: This sort of income is the profit made when you sell assets like property, shares, or equity. It’s taxed only in the country where you are a resident. For UAE residents, this means 0% capital gains tax.

Why the Treaty Matters for UK Entrepreneurs and Professionals

Under the UK-UAE Double Taxation Agreement for UK citizens, you can claim huge tax savings as a UK expat moving to Dubai, but only if you qualify and claim properly. Eligibility depends on more than just your tax home; it also considers whether you have a permanent home, how long you’ve been in the UAE, and your source of income.

When you set up your company with Meydan Free Zone, you’re shifting your operations to the UAE’s favourable tax framework, where you could qualify for 0% corporate taxes on free zone income.

This is what it looks like in practice:

Note: Meydan Free Zone can refer you to certified tax advisors for UK-UAE Double Tax Treaty guidance and interpretation.

Understanding the Statutory Residence Test (SRT)

If you’re wondering how the UK-UAE DTA affects British expats in Dubai, establishing your tax residency status is the single most important part.

Whether you avoid double taxation or not depends on whether HMRC sees you as a non-tax resident in the UK. That decision is made through the Statutory Residence Test (SRT).‍

The SRT looks at these “tie-breaker” rules:

• How many days you spend living in the UK during a tax year
• How many connections or “ties” you still maintain back home, like family, property, or a job

This is how it plays out -

Once you understand how HMRC decides tax residency, the next step is timing your move from the UK to Dubai and keeping your documents clean.

• Leave the UK soon after a new tax year begins, so you can qualify for split-year treatment (subject to eligibility). The result? Only UK months are taxed; UAE months are generally untouched.
• Reduce your UK connections by ending employment, renting, or selling your property, and keeping visits short.
• File Form P85 once you leave and claim split-year treatment (subject to eligibility). You still have to report any UK income, like rent or dividends, but your UAE earnings as a Meydan Free Zone business owner stay exempt.

Can You Be a Tax Resident in Both the UK and the UAE?

You can technically be considered a tax resident in both the UK and the UAE at the same time, but the UK-UAE Double Tax Treaty determines where your income is ultimately taxed. It uses “tie-breaker” rules that look at where you live, work, and maintain connections.

To claim treaty benefits, you generally need to become a non-tax resident in the UK and obtain UAE tax residency.

If you remain a UK tax resident, these are the steps you should take:

• Declare foreign income, including income from your UAE company, in your Self-Assessment tax return.‍
• You can claim Foreign Tax Credit Relief for UAE taxes paid or treaty exemption if possible.
• Keep documents like your UAE Tax Residency Certificate or payment records in hand for proof.

To claim relief, you’ll need to file the correct HMRC forms on time, usually DT-Individual or DT-Company, along with your documents.

The Path to UAE Tax Residency with Meydan Free Zone

In the UAE, your tax residency is proven through a document called a Tax Residency Certificate (TRC). This is an official certificate issued by the Federal Tax Authority in the UAE, confirming that you are a UAE tax resident.

To qualify for a TRC in the UAE, you need to unlock these:

1. A valid residency visa: The fastest path to a residency visa is through an investor visa. This can be easily obtained through a Meydan Free Zone business license, which you can get in under 60 minutes.
2. Establish physical presence: You need to be inside of the UAE for more than 183 days for a 12-month period.
3. Proof of residence: Think tenancy contract (Ejari), Emirates ID, bank statements, or utility bills.

When you meet the requirements, mPlus can guide you through the TRC application process, helping you prepare the right documents and navigate submission via the FTA’s online portal. The result? A clear, well-organised TRC journey.

Here’s what your step-by-step journey looks like:

Note: Through mPlus, Meydan Free Zone can refer you to certified tax advisors to help you learn how your business setup can qualify for UAE tax residency and treaty eligibility.

How Meydan Free Zone Helps You Unlock Treaty Benefits

The UK-UAE Double Tax Treaty gives UK entrepreneurs and professionals a way to protect their income, but with a business structure in Meydan Free Zone, those benefits become actionable.

Compliance & Tax Efficiency:

When you establish your company in Meydan Free Zone, you operate under one of the UAE’s most transparent and internationally recognised frameworks. You become eligible for 0% corporate tax on qualifying income and 0% personal income tax and withholding tax, allowing full profit retention, and 100% repatriation of profits and capital to move your money globally without hurdles.

No “Permanent Establishment” Risk (PE) in the UK:

One concern for UK expats is being classified as having PE in the UK, which could make your UAE income taxable back in Britain. While the question of PE is determined by UK tax authorities, Meydan Free Zone helps you build a clear UAE footprint with a trade license in Dubai, company documents like your MoA and share certificate, and a premium Meydan Hotel business address that supports your local presence.

Seamless Banking to Operate Globally:

Meydan Free Zone also connects you with leading UAE banks to help you open a corporate bank account that supports international transfers and client payments. These banks follow UAE Central Bank regulations aligned with global standards, giving you the credibility and security you need to grow across markets.

Corporate Governance You Can Trust:

Meydan Free Zone gives you a setup with built-in compliance features from day one. From clear UBO declarations, AML, upfront KYC checks, and FTA tax registration, you get a compliant structure that keeps you fully aligned with HMRC standards.

In Conclusion

The UK–UAE Double Tax Treaty gives you the legal foundation to protect your income, and Meydan Free Zone gives you the operational power to put it into action. You operate with 0% personal income tax, 0% corporate tax on qualifying Free Zone income, and enjoy full legal protection from double taxation under the treaty.

From business setup to banking, visas to tax registration, Meydan Free Zone handles everything in one digital platform, so your transition from the UK to Dubai feels effortless, not administrative.

This is your chance to build smarter, live freer, and grow confidently.

FAQs

1. How does the UK–UAE Double Tax Treaty work?

The UK–UAE Double Tax Treaty helps make sure you’re not paying tax twice on the same income. When you set up a company with Meydan Free Zone, your UAE-based earnings are usually taxed locally, often at 0% corporate tax on qualifying income, while the UK recognises your UAE tax residency under certain conditions.

2. Will I still pay UK tax if I move to Dubai?

It depends on your residency status. If HMRC still considers you a UK resident under the Statutory Residence Test (SRT), you may still pay UK tax on some income. Once you become a UAE tax resident, your UAE income typically falls under the treaty’s protection. Meydan Free Zone can refer you to certified tax advisors to help you determine how your income will be treated under the UK-UAE DTA.

3. What is a UAE Tax Residency Certificate (TRC)?

A TRC is official proof from the UAE’s Federal Tax Authority that you’re a UAE tax resident. You can apply for it once you have your residency visa, spent over 183 days in the UAE, and are able to show documents like your Emirates ID or tenancy contract. Meydan Free Zone’s mPlus team helps you through the process of obtaining your TRC.

4. Will my UK business income still be taxed after moving to Dubai?

If your income comes from a UK company, that portion may still be taxable in the UK. But profits made through your Meydan Free Zone company are generally taxed only under UAE rules, often at 0% corporate tax if you set up with Meydan Free Zone.

5. Why choose Meydan Free Zone for your move from the UK to Dubai?

Because Meydan Free Zone brings everything together, from business setup, visas, attestation, and tax residency, under one digital platform. You get 100% ownership, 0% personal income tax, 0% corporate tax on qualifying income, and compliance handled from day one. It’s your fastest route from UK bureaucracy to Dubai opportunity.