Tax Residency in the UAE: A simple guide to obtaining status

Why do you need a Tax Residency Certificate?

A TRC officially confirms to banks, investors, and foreign tax authorities that the UAE is your “tax home.” In practice, this means:

• Foreign partners stop withholding tax at source
• Dividends and capital gains earned abroad are not taxed in the UAE
• Banks open accounts faster and ask fewer compliance questions
• Double taxation is avoided under UAE treaties

Criteria checked by the Federal Tax Authority (FTA)

For individuals, there are two scenarios:

Standard route - reside in the UAE for at least 183 days over the past 12 months.

Simplified route - stay a minimum of 90 days, sign a long-term rental agreement (EJARI for at least one year), and prove that your centre of vital interests (family, work) has shifted to the UAE.

For companies, the key requirement is substance-real economic presence in the country. This includes having a physical office (not just a virtual one), staff registered in the WPS (Wage Protection System), active bank transactions, and an audited annual financial report. The last requirement is directly tied to Cabinet Decision No. 84/2025, which mandates audits for companies with turnover exceeding AED 50 million or operating in free zones claiming tax benefits.

How does the process look like in practice?

It starts with calculating physical presence and verifying your lease agreement. Then, a document package is prepared: passport, Emirates ID, entry/exit report, rental contract, and for companies-memorandum of association, trade license, bank statements, and audited financials. The application is submitted through the FTA portal along with the applicable government fee. If no issues arise, the electronic certificate is issued within 3 - 4 weeks and remains valid for 12 months.

Common mistakes

If you’ve spent less than 90 days in the UAE, it’s best to involve a qualified intermediary to avoid issues. Problems often arise when the applicant signs a lease but uses the property only as a mailing address. When the FTA requests utility bills and sees zero consumption, the chances of rejection increase.

The risks are even higher for companies: no actual office, dormant bank accounts, offshore ultimate beneficial owners (UBOs) - all are red flags. Add a delayed audit report (subject to fines of up to AED 50,000 under Cabinet Decision No. 75/2023), and you could face a suspended trade license and frozen bank accounts.

How does RSBM eliminate your risks?

We begin with an audit of your current situation-reviewing your lease, analysing your shareholder structure, and planning the most efficient certification strategy. If needed, we build a substance roadmap: securing compliant office space, hiring staff, and processing payroll through WPS. In parallel, we prepare and legalise all required documents, including translations and proof of funds. We handle the submission and liaise with the FTA until the certificate is issued. After issuance, our support continues: we help you update your KYC with banks, prepare your next audit cycle, and ensure your residency status remains valid.

Tax residency in the UAE unlocks powerful benefits-but only if you can prove real presence. Mistakes can be costly: fines, blocked accounts, and loss of credibility with partners and employees. At RSBM, we take care of the bureaucracy so you can focus on growing your business. We deliver approved tax residency from the first attempt. Want to enjoy the UAE’s tax advantages without stress? Contact us now - we’ll prepare a flawless application tailored to 2025 requirements.