The UAE has ranked first in a new global index assessing tax optimization opportunities for internationally mobile individuals, supported by its low direct tax burden, tax structure and options for obtaining residence. Global Citizen Solutions’ Tax Optimization for Global Citizens index assessed 48 jurisdictions across 11 indicators covering Tax Burden, Tax Structure and Investment Migration. The UAE achieved the highest overall score at 82.7 out of 100.
Original article: UAE tops global ranking of most tax-friendly destinations for global citizens by Economy Middle East.
Key Insights:
UAE Scores 100 for Tax Burden
The UAE scored 100 in the index’s Tax Burden category, reflecting the absence of personal income tax, net wealth tax and succession tax, alongside a 5% VAT rate and no exit tax.
The UAE ranked ahead of Antigua and Barbuda, which placed second overall with a score of 82.2, followed by Paraguay at 77.2, Hong Kong at 76.9 and the Bahamas at 76.2.
The report also placed the UAE among the top three jurisdictions globally for Tax Structure.
Tax Structure and Residency Shape the Ranking
The index considers more than headline tax rates. Tax Burden assesses areas including personal income, capital gains, wealth and inheritance taxes, while Tax Structure considers factors such as the treatment of internationally sourced income and exit taxation.
Investment Migration assesses the conditions under which individuals can obtain residence, reflecting the importance of residency arrangements when considering the tax position of internationally mobile individuals.
The UAE’s overall position therefore reflects a combination of its tax burden, the structure of its tax system and residency considerations rather than a single tax advantage.
UAE Strengthens Its Appeal to International Residents
The ranking provides further recognition of the UAE’s financial environment for internationally mobile individuals considering where to live, establish residence or invest.
However, Global Citizen Solutions notes that the index should be used as a starting point for comparison. Individual circumstances can vary considerably, with factors including treaty access, cost of entry, living conditions and specific residency requirements also influencing an individual’s overall tax position.
For international residents evaluating the UAE, its first-place ranking highlights taxation and residency as part of the wider financial considerations associated with establishing a base in the country.
