Expatriate Tax Solutions
UK Individuals Moving to or Investing in the UAE
UK residents are generally taxed on their worldwide income and gains. But with the right planning—combining the UK Statutory Residence Test, a UAE Tax Residency Certificate, and the UK-UAE Double Tax Treaty—you can significantly reduce or eliminate exposure to UK tax.
The treaty helps:
- Allocate taxing rights between the UK and UAE
- Override certain domestic tax rules
- Resolve dual-residency conflicts through tie-breaker provisions
Common Traps to Avoid
- Temporary Non-Residence Rules can still apply if you return to the UK within five years, triggering tax on gains realised while abroad.
- Split-year treatment is often misunderstood. It can fail to protect certain income streams, particularly UK dividends.
Strategic Tips
- Pre-departure planning is essential to ring-fence overseas gains and ensure treaty benefits are applied correctly.
- Once non-resident, UK company profits can be extracted via salary or dividends. Salaries for duties performed in the UAE are typically not taxable in either country and are deductible in the UK.
- UK dividends are generally exempt for UAE residents and may also be tax-free in the UAE depending on residency status.
- Spending more than 90 days in the UK does not automatically trigger UK tax residency—especially if treaty protections are correctly applied.