90 Days in Dubai: Unlock a New Tax Residency
- Thread starter troubled soul
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If you visit once every 180 days you simply suffice the requirements to maintain your residency. However holding a residence permit does not equal being a tax resident.
You can easily hold a UAE residency and trigger a tax residency elsewhere, i.e. by spending more than 180 days in another country. The burden of proof is significantly higher if you are able to present such tax residency certificate.
You can easily hold a UAE residency and trigger a tax residency elsewhere, i.e. by spending more than 180 days in another country. The burden of proof is significantly higher if you are able to present such tax residency certificate.
According to Cabinet Resolution No. 85, effective 1 March 2023, individuals can be considered tax residents in the UAE if they meet any one of the following conditions:
1. Their principal place of residence and the center of their financial and personal interests are in the UAE.
2. The individual has been physically present in the UAE for 90 days or more over a consecutive 12-month period and is a UAE citizen, UAE resident, or Gulf Cooperation Council (GCC) national who either has a permanent place of residence in the UAE or performs a job or business in the UAE.
3. The individual has been︀ physically present in the UAE for 183 days or more in a consecutive 12-month period.︁
The first point of the Cabinet Resolution No. 85, which mentions "Their principal place of︂ residence and the center of their financial and personal interests are in the UAE," seems︃ a bit ambiguous.
1. Their principal place of residence and the center of their financial and personal interests are in the UAE.
2. The individual has been physically present in the UAE for 90 days or more over a consecutive 12-month period and is a UAE citizen, UAE resident, or Gulf Cooperation Council (GCC) national who either has a permanent place of residence in the UAE or performs a job or business in the UAE.
3. The individual has been︀ physically present in the UAE for 183 days or more in a consecutive 12-month period.︁
The first point of the Cabinet Resolution No. 85, which mentions "Their principal place of︂ residence and the center of their financial and personal interests are in the UAE," seems︃ a bit ambiguous.
A residency permit can but not necessarily equal your legal residence. Jurisdictions can issue residence permits even without you needing to register your address or having a place of residence for yourself in the country.
Tax residency is indeed a totally different matter.
Interestingly, some countries allow people to live full-time in their jurisdiction without considering them tax residents.
Quite often, when there is a need to make it crystal︋ clear, tax treaties will help to do that (UAE has DTT-s with ~130 countries)
For example:
Where by reason an individual is a resident of both Contracting States, then his︌ status shall be determined as follows:
a) he shall be deemed to be a resident︍ only of the Contracting State in which he has a permanent home available to him;︎ if he has a permanent home available to him in both Contracting States, he shall️ be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has a permanent home available to him in neither Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode;
c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of︀ which he is a national;
d) if he is a national of both Contracting States︁ or of neither of them, the competent authorities of the Contracting States shall settle the︂ question by mutual agreement.
Tax residency is indeed a totally different matter.
Interestingly, some countries allow people to live full-time in their jurisdiction without considering them tax residents.
Quite often, when there is a need to make it crystal︋ clear, tax treaties will help to do that (UAE has DTT-s with ~130 countries)
For example:
Where by reason an individual is a resident of both Contracting States, then his︌ status shall be determined as follows:
a) he shall be deemed to be a resident︍ only of the Contracting State in which he has a permanent home available to him;︎ if he has a permanent home available to him in both Contracting States, he shall️ be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has a permanent home available to him in neither Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode;
c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of︀ which he is a national;
d) if he is a national of both Contracting States︁ or of neither of them, the competent authorities of the Contracting States shall settle the︂ question by mutual agreement.
Turkey is one. They have the 183 days rule, but also a provision "except cases when on holiday". Lots of Russians moved there, got residency permits based on buying/renting apartment and are considered to be on holiday. I don't know what would happen in a court but I've heard multiple times of people trying to get to the tax office, file declarations and pay the tax who were told to get lost as they are "tourists". Quite funny to be honest.
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