The UAE double taxation agreements reached 146 by the end of 2024, reflecting the country’s strong push toward global financial integration. These agreements prevent individuals and companies from paying tax twice on the same income.
Double taxation can negatively affect cross-border investment, trade, and the transfer of capital and technology. Through these treaties, the UAE works to remove such barriers, ensuring that businesses and residents enjoy fair and efficient tax treatment.
Public and private companies, investment entities, air transport firms, and individual residents benefit directly from double taxation of the UAE. These deals outline how different types of income, such as dividends, property income, and pensions, should be taxed between countries. The agreements also enforce non-discrimination clauses to prevent unequal treatment based on nationality or residency.
In 2024, the UAE Ministry of Finance emphasized that these treaties support its competitiveness and international economic reputation. The government also approved 116 investment protection and promotion agreements to safeguard investor rights and attract foreign capital.
Meanwhile, 2024 marked a major step forward for the UAE’s financing tools. The country held 14 auctions under the Islamic Treasury Sukuk programme, raising over $4.6 billion. Investors consider these bonds low-risk instruments, and they help develop a local currency debt market.
Although the UAE does not currently levy income tax on individuals, it introduced a value-added tax in 2018 and corporate tax in 2023. However, no double taxation agreement currently exists between the UAE and the United States. This leaves American citizens and green card holders subject to U.S. tax law, even while living abroad.
The taxation agreements also support digital and fiscal policy improvements. The Ministry of Finance launched digital transformation projects in 2024 to improve government spending efficiency, boost transparency, and enhance financial operations.
Through these efforts, the UAE continues to solidify its position as a leading global financial hub. The increasing number of UAE tax agreements with other countries signals long-term economic planning and sustainable fiscal strategy.
