If I leave my country of residence and move to Dubai, am I automatically considered a tax resident of UAE by the tax authorities of my country?

Moving to Dubai attracts many entrepreneurs, investors, and professionals due to its tax advantages. However, the question of tax residency is crucial and can have significant consequences. Relocating to Dubai does not automatically mean you will be considered a tax resident by the tax authorities of your home country. Here is what you need to know.

1. What Is tax residency?

Tax residency determines the country where you are required to pay taxes on your worldwide income. Each country has its own criteria for defining tax residency, often based on:

• The duration of physical presence (e.g., more than 183 days per year).

• The center of economic and personal interests.

• The official tax domicile.

2. Criteria to be considered a tax resident in Dubai

To be recognized as a tax resident in Dubai, it is essential to:

• Obtain a residency visa in the United Arab Emirates (UAE).

• Hold a valid residence permit.

• Effectively reside in Dubai and spend a significant part of the year there.

• Possess a Tax Residency Certificate, issued by the UAE tax authorities.

3. Implications for your home country

Leaving your home country does not automatically mean you cease to be a tax resident there. Tax authorities may continue to consider you a tax resident if:

• You have significant economic ties there (businesses, real estate, bank accounts).

• Your family resides there.

• You maintain important financial interests.

Some countries apply anti-abuse rules to prevent tax evasion, especially in cases of relocation to low-tax jurisdictions.

4. The role of international tax treaties

Bilateral tax treaties (double taxation agreements) can help clarify your status. These treaties define criteria to avoid double taxation and determine in which country you are considered a tax resident.

5. How to secure your tax residency in Dubai?

To avoid tax complications:

• Obtain a Tax Residency Certificate in Dubai.

• Sever significant tax ties with your home country.

• Keep evidence of your effective presence in Dubai.

6. Conclusion

No, you are not automatically considered a tax resident of Dubai upon leaving your home country. It depends on the tax laws of your country and the steps taken in the United Arab Emirates. For optimal management of your tax situation, Meyran Partners supports you in your relocation and international tax optimization processes.