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Dubai isn’t fully tax-free, even though the UAE won’t touch your salary. A Dutch entrepreneur with a Dubai company can still face 9% UAE corporate tax, 5% VAT, excise duties and Dubai’s housing fee. On top of that come three Dutch taxes that follow you out the door when your move isn’t done properly. Here’s what each one costs in 2026 and who actually pays it.
The no-income-tax part is true. The UAE government portal states that the UAE doesn’t levy income tax on individuals, but it does charge 5% VAT and an excise tax on selected goods. For most Dutch people, though, the bigger bill comes from the Netherlands. The Belastingdienst looks at where your life actually happens, and a Dubai residence visa on its own doesn’t settle that question.
Four of these taxes are charged in the UAE and three in the Netherlands. The UAE ones are predictable and fairly low. The Dutch ones depend on whether you really left, how much of your company you own and what happens to your estate. This table shows the 2026 picture before we go through each tax.
| # | Tax | Charged by | Rate or amount | Who it hits |
|---|---|---|---|---|
| 1 | UAE corporate tax | UAE (FTA) | 0% up to AED 375,000 profit, 9% above | Your Dubai company |
| 2 | Value added tax (VAT) | UAE (FTA) | 5% | Consumers, plus companies above AED 375,000 in taxable supplies |
| 3 | Excise tax | UAE (FTA) | 50% or 100% on selected goods | Buyers and importers of tobacco and certain drinks |
| 4 | Housing fee and property transfer fee | Dubai | 5% of annual rent, 4% of purchase price | Tenants and property buyers |
| 5 | Dutch income tax (Box 1 and Box 3) | Netherlands | Up to 49.5% in Box 1, 36% on a deemed return in Box 3 | Anyone who is still Dutch tax resident |
| 6 | Box 2 and the emigration assessment | Netherlands | 24.5% and 31% | Shareholders with a stake of 5% or more |
| 7 | Inheritance and gift tax | Netherlands | 10% to 40% | Dutch nationals within 10 years of leaving |
Your Dubai company pays 0% on the first AED 375,000 of taxable income and 9% on everything above it. The rules apply to financial years starting on or after 1 June 2023. Every company has to register with the Federal Tax Authority and file a return each year, even when the tax due is zero.
Corporate tax also doesn’t replace VAT. The Federal Tax Authority’s corporate tax FAQ confirms that the two are separate taxes and both keep applying. Legitimate business expenses are deductible, and the starting point for taxable income is your accounting net profit after the adjustments set out in the law.
Here’s how the math works on a realistic profit. A Dubai trading company with AED 1,000,000 in taxable profit pays nothing on the first AED 375,000. The remaining AED 625,000 is taxed at 9%, which comes to AED 56,250. That’s an effective rate of about 5.6%, far below the Dutch corporate rate, but it isn’t zero.
A free zone company can pay 0% on qualifying income if it meets the conditions of a Qualifying Free Zone Person. That means real substance in the free zone, audited accounts and income from qualifying activities. Income from mainland customers often falls outside that, and it’s taxed at 9%.
Small businesses with revenue up to AED 3 million can elect Small Business Relief and be treated as having no taxable income. As written, the relief covers tax periods ending on or before 31 December 2026, so check whether the Ministry of Finance has extended it before you plan around it. Freelancers aren’t automatically outside the net either, since individuals running a business with turnover above AED 1 million have to register.
Also read: UAE tax changes 2026
The UAE introduced VAT on 1 January 2018 at a standard rate of 5%. You pay it on most goods and services as a consumer. Your company must register once its taxable supplies and imports pass AED 375,000 over 12 months, and it can register voluntarily from AED 187,500.
For a Dutch founder, the practical question is how VAT treats your customers. Services billed to a business client in the Netherlands can often be zero-rated as an export, but the conditions are strict, and the FTA checks the paperwork. Residential rent is exempt from VAT, which surprises people who expect it on every invoice.
Also read: VAT registration in Dubai.
The UAE charges excise tax on goods it considers harmful to health. It started in October 2017 with 100% on tobacco products and energy drinks and 50% on carbonated drinks. Sweetened drinks and e-cigarette products were added later. You pay it at the shelf without noticing, since it’s built into the price.
It matters more when you import or trade these products. Your company then has to register for excise tax, file returns and prove where the goods went. The UAE announced a move to sugar-based tiers for sweetened drinks from 2026, so check the FTA’s current rate table before you price a product. A Dutch snack or beverage brand selling in the UAE needs this worked out before the first container ships.
Also read: Customs, VAT and duty rules for Dutch traders in Dubai (2026)
Dubai has no annual property tax, but it does charge municipality fees on housing. Residential tenants pay a housing fee of 5% of their annual rent, collected through the monthly DEWA utility bill. PwC’s UAE tax summary also notes that hotels in Dubai add a 7% municipality fee to every sale, on top of the nightly Tourism Dirham.
On a villa rented at AED 120,000 a year, the housing fee comes to AED 6,000 a year. People rarely budget for it because it shows up in the electricity bill instead of the lease. When you buy property, the Dubai Land Department charges a transfer fee of 4% of the purchase price, plus smaller registration costs.
| Situation | Fee | Example |
|---|---|---|
| Renting a home | 5% of annual rent via DEWA | AED 6,000 on AED 120,000 rent |
| Buying property | 4% DLD transfer fee | AED 80,000 on a AED 2,000,000 apartment |
| Hotel stays | 7% municipality fee plus Tourism Dirham per night | Added to every hotel bill |
Also read: Investing in real estate in Dubai, complete guide for Dutch investors.
You stay a Dutch taxpayer for as long as the Netherlands remains the center of your life. The Belastingdienst doesn’t count days. It looks at where your home, partner, children, bank, doctor and social life are. If those stay in the Netherlands, your worldwide income stays taxable there, with Box 1 rates up to 49.5%.
This is where most “tax-free Dubai” plans fall apart. We regularly see founders who registered a Dubai company, got a visa and kept living in their house in Utrecht. Their Dubai salary is then Dutch income. Worse, if the company is run from the Netherlands, the Belastingdienst can treat it as a Dutch company and charge Dutch corporate tax of 19% and 25.8% on its profits.
A Dutch resident pays Box 3 tax on worldwide savings and investments. A Dubai apartment, an account at a UAE bank and crypto held on a local exchange all count. The Belastingdienst taxes a deemed return on those assets at 36%, whether or not the assets earned anything that year.
The tax treaty between the Netherlands and the UAE doesn’t rescue you here. A treaty only prevents double taxation, and there’s nothing to double when the UAE didn’t tax the income in the first place.
Also read: The UAE 183-day rule for Dutch investors and entrepreneurs.
If you own 5% or more of a company, the Netherlands calls that a substantial interest, or aanmerkelijk belang. While you’re a Dutch tax resident, dividends from your Dubai company are taxed in Box 2 at 24.5% on the first bracket (roughly €68,000 per person) and 31% above it. Selling the shares is taxed the same way.
Leaving doesn’t wipe the slate clean. On the day you emigrate, the Belastingdienst issues a protective assessment called a conserverende aanslag on the value growth of your shares. You don’t pay it right away. It becomes due when you sell the shares or pull out profits, and since 15 September 2015 it no longer expires after 10 years.
A quick example. Say you put €10,000 into your company, and it’s worth €500,000 when you move to Dubai. The deemed gain is €490,000, and at the Box 2 rates that’s a claim of roughly €147,000. It stays on file until a sale or a large dividend wakes it up.
Also read: From the Netherlands to Dubai, building a tax-free business empire.
The UAE has no inheritance or gift tax. The Netherlands does, and it keeps a claim on its nationals after they move. If you hold Dutch nationality and die within 10 years of emigrating, your heirs pay Dutch inheritance tax as if you still lived there. For gifts, anyone who leaves is treated as a resident for one year after departure.
Rates run from 10% for partners and children on the first bracket up to 40% for more distant heirs. For a Dutch family with a Dubai company, a house and investments, that’s often the largest tax in this whole list, and it’s the one people think about least. It’s also worth registering a will in Dubai, since UAE succession rules apply to assets held there.
A real tax move means your life and your company both run from Dubai, and you can prove it. The steps below are the ones the Belastingdienst tends to ask about when it reviews an emigration. Skipping one of them is usually how the Dutch taxes above come back into play.
Our tax consultants in Dubai handle the UAE side, from corporate tax registration to VAT returns, and work alongside your Dutch adviser on the emigration file. InvesQ Corporate Services Provider sets up and manages companies for Dutch entrepreneurs from our office in Dubai. If you want to know which of these seven taxes applies to you, book a free Dubai business consultation before you sign anything.
Also read: UAE corporate tax return filing 2026
Also read: Free zone business establishment in Dubai, a complete guide for Dutch entrepreneurs (2026)
Do Dutch people pay income tax in Dubai?
No, the UAE doesn’t tax individual income, whether you’re employed or run your own company. That doesn’t make your income tax-free. If the Netherlands still sees you as a resident, your Dubai salary and dividends are taxed there, at up to 49.5% in Box 1.
Is spending 183 days in Dubai enough to stop paying Dutch tax?
No, the Netherlands doesn’t use a fixed day count for residency. The Belastingdienst looks at where your home, family and daily life are. You can spend 200 days in Dubai and still be Dutch tax resident if your house and family stay in the Netherlands.
Is a Dubai free zone company tax-free?
A free zone company can pay 0% corporate tax on qualifying income, but only as a Qualifying Free Zone Person. It needs real substance, audited accounts and qualifying activities. Income from mainland UAE customers is usually taxed at 9% above the AED 375,000 threshold.
Do I still pay Dutch tax on dividends after moving to Dubai?
Often yes, through the protective assessment the Belastingdienst issues when you emigrate with a stake of 5% or more. The assessment is collected when you sell the shares or pay out profits. Since 15 September 2015, it no longer lapses after 10 years.
Is there property tax in Dubai?
There’s no annual property tax in Dubai. Buyers pay a one-off 4% transfer fee to the Dubai Land Department. Tenants pay a housing fee of 5% of their annual rent, which is added to their monthly DEWA utility bill.
Does the Netherlands-UAE tax treaty make Dubai income tax-free?
No, the treaty only decides which country may tax an income and prevents it from being taxed twice. It doesn’t create a tax exemption for people who never left. If the Netherlands keeps taxing rights over you, the treaty gives little relief because the UAE charged no income tax.
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