Working with Australian Expats in the United Arab Emirates & Beyond
Dubai and Abu Dhabi have become a magnet for Australian professionals seeking career opportunities, a global lifestyle, and—of course—its famously favourable tax environment.
However, moving to the UAE does not automatically cut ties with the Australian tax system.
Understanding how residency rules work in both jurisdictions is essential to avoid unintended tax bills and to optimise your financial position.
In this guide we explain what Australians in Dubai, Abu Dhabi and the many other Emirates need to know about cross-border tax living in the UAE.
Are Australians in the UAE liable for tax?
The UAE is often marketed as a “tax-free” jurisdiction, which is partly true.
Individuals do not pay personal income tax on salaries, dividends, or capital gains, and there is no inheritance tax. For many Australians, this represents a significant financial uplift compared to working at home.
However, the crucial factor is whether you remain an Australian tax resident after moving overseas. If the Australian Taxation Office (ATO) considers you a resident for tax purposes, you are still required to declare and pay tax on your worldwide income—even if earned in the UAE.
To learn more about qualifying as a non-resident for tax purposes with the ATO please read this article.
This includes employment income, rental returns from property, capital gains, and investment earnings.
The good news is that if you are properly established as a non-resident of Australia, your liability is limited to Australian-sourced income only (for example, rent from property held in Australia or certain Australian investments).
This distinction—resident versus non-resident—is the foundation of your tax position while living abroad.
What taxes may apply to Australians in the UAE?
While individual income tax is absent, Dubai is not entirely tax-free. Expats should be aware of several key taxes and charges:
- Corporate Tax: Introduced in 2023 at 9% for businesses earning profits above AED 375,000. Oil and gas companies pay up to 55%, while foreign bank branches face a flat 20%. Many professionals are unaffected unless operating their own company.
- Value-Added Tax (VAT): A 5% tax applies on most goods and services. Companies with turnover above AED 375,000 must register, though voluntary registration is possible above AED 187,500. VAT impacts business owners more directly, but consumers see it reflected in daily purchases.
- Excise Tax: Levied on items considered harmful to health or the environment, including:
- 50% on sugary drinks,
- 100% on energy drinks, tobacco products, and electronic smoking devices.
- Property Taxes and Fees:
- Transfer fee: 4% of property value when buying.
- Registration fees: AED 2,000–4,000 depending on property price.
- Municipality charges: 5% of annual rent for residential tenants; 2.5% for commercial tenants.
- Maintenance fees: AED 55–220 per square metre annually.
These costs are modest compared with Australia’s property taxes but should be factored into financial planning.
Is there a double tax agreement between Australia and the UAE?
Currently, there is no double tax agreement (DTA) between Australia and the UAE. This means there is no formal framework for preventing double taxation or allocating taxing rights.
Fortunately, because the UAE does not tax personal income, the lack of a treaty rarely results in actual double taxation.
However, it does remove some of the administrative relief a treaty would normally provide. For example, there is no automatic recognition of residency status between the two countries, and expats must rely on presenting sufficient evidence.
The absence of a treaty reinforces the importance of proper planning before leaving Australia and maintaining clear records of your residency position while abroad.
How Atlas Wealth can help
At Atlas Wealth, we specialise in advising Australian expats across the globe. With deep expertise in the UAE–Australia corridor, we guide clients through:
- Establishing and documenting non-residency,
- Managing Australian investments and property tax efficiently,
- Structuring income and assets while abroad,
- Planning a future return to Australia to minimise tax shocks.
If you’re considering a move to the UAE, whether it is Dubai or Abu Dhabi, or are already here—contact us to ensure your financial affairs are structured for both compliance and maximum advantage.
If you would like to know more, click below to speak to an Atlas Adviser.
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General Advice Disclaimer
The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Atlas Wealth Management Authorised Representative before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Atlas Wealth Management nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.