Dubai Income Tax for UK Expats: What You Need to Know
November 4, 2025
October 31, 2025
Topic Summary
1. Zero Personal Income Tax in Dubai
Dubai imposes no personal income tax on salaries or wages, a striking contrast to the UK where income tax rates range from 20% to 45% depending on income level. This tax-free environment is a principal reason why many UK entrepreneurs and professionals consider relocating.
2. Corporate Taxation Landscape
While the UK levies corporation tax on company profits at a standard rate of 25% (as of April 2023), Dubai recently introduced a federal corporate tax at a rate of 9% on profits exceeding AED 375,000 (approximately £80,000). This rate remains comparatively low and competitive on a global scale.
3. No Dividend Tax in Dubai
Dividends paid to individuals in Dubai are generally not subject to tax, whereas in the UK dividend income is subject to tax rates of 8.75%, 33.75%, or 39.35% depending on one’s tax band. This advantage supports wealth retention for entrepreneurs drawing dividends from their businesses.
4. Social Security Contributions and National Insurance
UK residents contribute to National Insurance, which funds state benefits but reduces net income. Dubai does not impose social security contributions on expatriates, further maximising disposable income for UK expats working or running businesses in the emirate.
5. Tax Residency Considerations
UK expats must be aware of their tax residency status to avoid double taxation risks. The UK has a double taxation treaty with the UAE that helps prevent being taxed twice on the same income. Proper planning and compliance with residency rules are essential when relocating to Dubai.
For UK entrepreneurs and professionals looking to move to Dubai, this is often the first thought that crosses their minds: how does the income tax in Dubai compare to that in the UK? Breaking down how income tax works in the UK and Dubai would help you see why more entrepreneurs are choosing to relocate.
In the UK, the money you keep shrinks through multiple layers: corporation tax at the company level, followed by income or dividend tax when it lands in your bank account. With an income tax of 45% alone, your business growth could feel capped before it even begins.
Imagine reinvesting every pound you earn without worrying about income tax, dividend tax, or capital gains. That’s the reality in Dubai, where 0% personal income tax and 0% corporate tax on qualifying Free Zone profits mean that your money stays yours.
The result? You’re free to reinvest profits, grow your company faster, and enjoy more of your salary. Combine that with year-round sunshine, the best safety system, world-class infrastructure, and global connectivity, and it’s easy to see why Dubai has become the launchpad for ambitious founders.
With Meydan Free Zone, you secure your business license online in under 60 minutes, pick from 2,500+ business activities, enjoy 100% ownership, launch your business, and tap into Dubai’s unmatched tax advantages.
Why UK Entrepreneurs and Professionals Are Choosing Dubai
For many UK expats and professionals, the move to Dubai is less about leaving their home behind and more about stepping into a future of financial freedom, stability, and growth. Here’s why many are choosing to switch their address to Dubai:
- Tax Burden That Holds You Back:
Entrepreneurs in the UK face a heavy tax stack: corporation tax up to 25%, personal income tax up to 45%, dividend tax
up to 39%, plus National Insurance, and discussions about the imposition of a wealth tax. By the time your share is taken, your take-home pay and business growth feel restricted. In Dubai, 0% personal income tax and 0% corporate tax on qualifying Free Zone income mean your earnings stay yours. With Meydan Free Zone’s business license in under 60 minutes, you can start faster, keep more, and grow without limits. - Tapping Into Real Income Potential:
Dubai’s 0% income tax creates a win–win: if you want to start a company, you can hire talent at a lower cost, while your employees keep 100% of their salary. The result? A magnet for top professionals and more profit left for growth. With Meydan Free Zone, you can scale faster, hire smarter, and stay more competitive. - Escaping Rising Living Costs:
From soaring energy bills to housing challenges, life in the UK is getting more expensive by the day, eating more into your disposable income. Dubai is roughly 37% cheaper than London, and rent is 31% lower too. This means your untaxed income in Dubai thrives further. With Meydan Free Zone, your income can be strengthened further with a business operating without paying taxes. - Stability & Safety That Protects Your Income:
The UK economy is declining with shifting policies, steep inflation, and uncertainty, making it difficult for UK entrepreneurs to plan long-term. Dubai is one of the safest cities and ranks 16th globally for ease of doing business, providing a pro-business environment for launching your business. And when you want to make your move, mPlus by Meydan Free Zone gives you a setup with visa, compliance, and regulatory support built-in. - Strong Quality of Life:
Dubai offers world-class British schools, luxury amenities, healthcare, and infrastructure, all set against year-round sunshine. With Meydan Free Zone, your business license unlocks a smooth transition from the UK to Dubai with dependent visa allocations for your family, banking introductions, and a seamless digital setup, even whilst you’re in the UK, so that you can settle in quickly. - Growth Without Bureaucracy:
Starting a business in the UK usually means slow approvals, heavy regulations, and endless paperwork. In Dubai, Meydan Free Zone makes it effortless: with three business models you can run under one business license, 2,500+ business activities to choose from, and a paperless setup that allows you to start from home in the UK.
As a UK entrepreneur, you have the chance to trade rising UK taxes for Dubai’s tax-free growth, and Meydan Free Zone is your fast track to making it happen.
An Overview of the UAE’s Tax System for UK Entrepreneurs
When UK entrepreneurs and professionals think about moving abroad, the first question is usually: where can my income grow the best? Here’s the good news: Dubai’s tax regime is simple, transparent, and far lighter, making it easier for you to grow, live, and work to the fullest.
Here’s how the UK and UAE tax systems compare at a glance:
So, what does this mean for you when you are moving from the UK to Dubai?
- Your income is taxed at every layer in the UK: First, your company pays corporation tax on profits. Then, when you pay yourself, you’re taxed again with either the dividends tax or personal income tax. Add in National Insurance, and your take-home shrinks fast. So, if you have a £100,000 profit, it can easily fall to ~£50–55,000 after you pay taxes. Even as a salary-maker, 45% of your earnings can go straight to income tax.
- In Dubai, the entire stack disappears: there’s 0% income, dividend, and capital gains tax and 0% corporate tax on qualifying Free Zone income. When we say Dubai has “no income taxes”, what it really means for a UK expat is that it’s not just your salary that goes untaxed, but the whole picture: profits, dividends, and personal income. The result? You save more, hire faster, or reinvest.
- Meydan Free Zone unlocks it all: The UAE introduced a 9% corporate tax in 2023. But here’s the key: Businesses in free zones like Meydan Free Zone enjoy 0% corporate tax on qualifying income, which is typically earnings from overseas clients or other Free Zones. As a result, only profits from mainland UAE activities (above the AED 375k threshold) can be taxed at 9% if they exceed the de minimis limit. As an entrepreneur from the UK, structuring your business with Meydan Free Zone can almost legally reduce your taxes to zero while maintaining 100% ownership and freely repatriating profits.
The UK–UAE Double Tax Treaty Explained
If you’re thinking of moving from the UK to Dubai, one question you might have is: “Will HMRC still tax me?”.
If you’re a tax resident in the UAE, the income you earn in Dubai won’t be taxed again in the UK. To qualify, you need a UAE residence visa, fulfil your stay requirement in Dubai, and apply for the Tax Residency Certificate (TRC), which is the proof required to verify your residency.
With Meydan Free Zone, you don’t just get a business license in under 60 minutes; you’re supported with securing your residence visa, handling compliance, tax registration, and obtaining your Tax Residency Certificate (TRC), all through mPlus.
Once you’re a UAE tax resident with a TRC, HMRC cannot tax your Dubai earnings again; the treaty ensures you avoid double taxation, saving you a lot more earnings.
Structuring Your Move Around Tax Residency in the UAE
For a UK entrepreneur or professional, here’s the best path to becoming a UAE tax resident, moving out of HMRC’s tax net, and saving more of your income:
- Register & Launch Your Business in Dubai:
The safest, long-term path to securing your residency in Dubai is through an investor visa. The first step in locking it in
would be getting a business license from Meydan Free Zone, where you get 100% ownership, over 2,500+ business
activities to choose from, and the ability to launch and conduct a business within 60 minutes, entirely online. - Get your UAE Residency Visa:
Your business license would make you eligible for an investor or business visa. With mPlus of Meydan Free Zone,
streamlining your move from visas and compliance to dependent sponsorship, you’ll be able to pack up your life in the
UK and move to Dubai in record time. - Spend Time in Dubai:
To qualify as a UAE tax resident, you need to be in the UAE for more than 183 days during the last 12 months. This
physical presence is crucial for HMRC to recognise your tax home as the UAE, not the UK. - Obtain a Tax Residency Certificate (TRC):
Once you’ve met the residency threshold, apply through the UAE’s Federal Tax Authority (FTA) website. The TRC is the
official proof HMRC accepts to confirm your income is taxable in the UAE, not the UK. - Report to HMRC Through Form P85:
Notify HMRC that you’ve left the UK. If you exit just after the start of a tax year, you can often claim split-year treatment,
so only the UK portion of your income is taxed, and Dubai earnings remain untaxed.
Once these steps are complete, salaries, dividends, and business profits that you make in Dubai fall under the UAE’s 0% personal income tax regime, meaning every dirham you earn can be kept, reinvested, or saved.
Life and Business in Dubai Beyond Tax with Meydan Free Zone
Life in Dubai isn’t just about keeping more of your income; it’s about living to your fullest. Beyond what you can save, here’s how Meydan Free Zone makes your move worthwhile as a UK entrepreneur or professional:
- More wealth, better lifestyle: With 0% income taxes and lower living costs, your disposable income goes further. With Meydan Free Zone, you’re only 60 minutes away from enjoying a luxury lifestyle while keeping more of your money.
- No NOC needed: You don’t need a No Objection Certificate (NOC) to start, even if you’re employed in the UK or already in Dubai on a work visa. You can build your business on your own terms, with 100% ownership and 2,500+ business activities to choose from.
- Multiple residency routes: Whether through an employment visa, a dependent visa, or an investor visa, there are many visa routes in Dubai to make your move simple. But what is the safest route to long-term residency and family sponsorship? A business/investor visa. Meydan Free Zone lets you link your visa to your business license, which is issued in under 60 minutes.
- Familiar neighbourhoods: From 85+ British curriculum schools to communities near business districts, Dubai has plenty of choices. Meydan Free Zone supports your dependent visa applications so that you can settle your family with ease.
- Mandatory health insurance: Health insurance is a vital part of completing your residency, and mResidency connects you with trusted providers while your visa is being processed.
- Banking ease: You can open personal and corporate accounts within days and repatriate your profits freely with no extra fees on transfers overseas. Meydan Free Zone gives you a guaranteed IBAN and supports introductions with UAE banks, so you can find the best options to secure your finances.
- Compliance made easy: Worried about navigating tax residency in the UK and UAE? Meydan Free Zone supports you from day one with obtaining your residence visa, tax registration, end-to-end compliance, documentation, and securing your TRC.
In Conclusion
Imagine building a business where everything you earn is yours to keep, not halved by corporation, dividend, or income taxes; that could be you in Dubai.
Say your business earns roughly £120,000 a month, or you’re a mid-senior professional in the UK earning that yearly: your gross profit or take-home salary can drop to around £72,000 after taxes. In Dubai, that same £120,000 stays yours. The result? Morefreedom to save, invest, and build the lifestyle you’ve worked hard for.
That’s why Dubai is fast becoming the choice for UK talent. It’s not only about keeping more of what you earn but also accelerating your career, growing your business, and enjoying a safe, family-friendly lifestyle. With world-class schools, healthcare, and global connectivity, Dubai offers both financial freedom and quality of life.
The best part? Meydan Free Zone is your gateway. From a business license in under 60 minutes to 100% foreign ownership, 0% corporate tax on qualifying Free Zone income, and full support with visas, compliance, and TRCs, your future has no limits.
FAQs
1. Do I really pay no income tax in Dubai?
Yes, Dubai has 0% personal income tax. Salaries, profits, dividends, and capital gains aren’t taxed locally. If you set up through Meydan Free Zone, you also enjoy 0% corporate tax on qualifying Free Zone profits. This means more of your earnings stay with you to save, spend, or reinvest.
2. Will HMRC still tax me if I move from the UK to Dubai?
Not if you establish UAE tax residency. Once you secure a residence visa after getting your business license from Meydan Free Zone, meet stay requirements, and obtain a Tax Residency Certificate (TRC), the UK–UAE Double Tax treaty prevents HMRC from taxing your Dubai earnings again.
3. What’s the path to UAE tax residency?
Hold a UAE residency visa, spend around 183+ days in the UAE, dismantle local ties back home in the UK, then apply for a TRC. Meydan Free Zone streamlines this path by bundling your business license, visas, compliance, and TRC documentation support into one digital setup, making your residency and tax status secure.
4. Do I need a company to become a tax resident in Dubai?
There are a few ways to qualify for UAE residency like employment, property investment, or business ownership. But for most UK expats, setting up a company is the simplest and most flexible path. With Meydan Free Zone, you can get a business license in under 60 minutes, secure your residency visa, and enjoy 0% corporate taxes on the profits you make.
5. How does my UK take-home salary or profits compare to Dubai?
In the UK, income tax, NI, and dividends can remove 40–50% of what you earn. In Dubai, personal income tax is 0%, so your gross earnings often equals your net earnings. That dramatically improves your savings, reinvestment, and lifestyle headroom. And, having that kind of flexibility in Dubai, a city where luxury is combined with more income, you’re set for life.
