How to be self-employed in the United Arab Emirates? (2024)

FAQs

How can I become self-employed in UAE? ›

1.2 For UAE non-residents

If you are a foreign individual, you just need to apply for a freelancer visa and a residence permit which will allow you to work and reside in the country as a self-employed individual.

UAE visa you can get without a job. Although a majority of the expats, which accounts for about 85 percent of the UAE's population, work as an employee in the country and require a work visa to live here, there has, however, been a noteworthy expansion of the visa scheme as announced by the UAE government.

1 of 2022 on the Implementation of Federal Decree Law No. 33 of 2021 Regarding the Regulation of Employment Relations (the 'Cabinet Resolution No. 1 of 2022') are applicable. The Employment Law includes the freelance work permit as a legal form of work permit in the UAE.

In addition to the hugely popular Golden Visa and multiple-entry five-year tourist visa, the country has announced a five-year Green Visa. The residence visa allows its holder to sponsor himself/herself for five years. These reforms are expected to go into effect from September 2022.

If you are not a UAE resident, you must apply for a freelancer visa to acquire a residency permit. This permit allows individuals to reside and work in Dubai as a freelancer. Also, you will have to apply for a residence visa.

If moving to the UAE as a self-employed worker, you will need to register yourself in one of the UAE's many “free zones.” There are nearly 40 of these zones within the seven emirates, but only a handful sponsor self-employed visas.

Around 80% of the emirate's population is made up of expatriates, partly because of the high quality of life and the attractive salaries. The average salary in Dubai is AED 21,500 per month, which is equivalent to USD $5,853. The salary of a worker in Dubai is therefore on average higher than in Western countries.

Purchasing real estate in Dubai may grant the buyer a residence permit. According to the UAE investor visa program, the property must be completed upon the purchase and its value must be of at least AED 1 million. Holders of residence visas through real estate purchase may also sponsor their dependents.

Tax Implications as a Freelancer

For individuals working as freelancers in the UAE, you don't pay any personal tax or corporate tax. The only tax you may need to pay is VAT such as: If you earn more than Dhs. 375,000, then you must register for VAT.

How much do freelancers earn in UAE? ›

Average AED 7,397 per month.

Freelance permit: The freelance permit costs AED 7,500 to be issued and renewed. It needs to be renewed annually. Establishment card: The establishment card costs AED 2,000 to be issued and renewed. It needs to be renewed annually.

You might have to visit the Dubai Knowledge Park, Dubai Media City, or Dubai Internet City with your original passports and other documents to get the Dubai freelance permit. The entire process takes approximately 5-7 working days. Indian nationals will also have to pay the Dubai freelance permit fee.

If you're applying for a UAE Visa, you need a sponsor. It can be a family member, a colleague, or a friend. This will make things a lot easier. If you don't know anyone there, an airline, hotel, or travel agency can sponsor you.

The UAE does not levy income tax. Therefore, there is no need for an income tax return in the UAE. The same also applies to freelancers and self-employed individuals who are residents of the Emirates.

But if you're not a UAE resident, it'll be necessary to get a freelancer visa or self sponsored visa UAE. And applying for a residency permit is also a requirement that allows you to live and work as a freelancer in the UAE.

By utilising your digital skills, running a side hustle allows you to gain additional income on the side of your primary employment or studies. And this kind of work can help make some serious income – according to one expert, side hustles in Dubai could generate a monthly income of between AED 3000 and 6000 per month.

If you invest in a property in the UAE worth at least 5 million AED, you can acquire a five-year visa. You must meet the following terms for the visa: You must hold onto the property for at least three years.

How much salary do you need to live in UAE? ›

Living Expenses in the UAE

The average cost of living for family of four is about about 12,000 AED per month (3,000 USD). Without rent, this includes items such as groceries, transport, leisure activity, and eating out at restaurants. A single person can expect to pay about 3,000 AED (800 USD).

The global COVID-19 pandemic and global economic downturn impacted the UAE, as it did every other country. The pandemic triggered an unprecedented financial crisis as oil prices fell, significantly reducing the UAE's oil revenues.

Absolutely. English is the most commonly spoken language in Dubai. With a high number of expats, most of whom speak English as a native or second language, you'll find it easy to make your way around. From road signs and menus to phone directories and public transport, English is always an option.

Following Fujairah on top was Abu Dhabi with 88.46 percent. Ajman, Sharjah and Dubai were No7, 8 and 9, with safety index of 84.5, 84.31 and 83.89 respectively. In 2021, as per the total combined stat, Abu Dhabi (88.46) was the safest city in the world, followed by Doha (87.96).

Once you have purchased the property you may apply for a residence visa. This visa will be valid for up to 2 years, renewable, as long as you still own the property and you visit the country at least once every 180 days. Absence for a longer period may lead to the visa's cancellation.

It can be for 1, 2 or 3 years, or up to 5 or 10 years without a sponsor. According to recent changes, a residence visa can also be issued for 5 and 10 years subject to certain conditions. Learn about long-term residence visas, and 5-year retirement visa in the UAE.

Unfortunately for expats looking to move abroad to Dubai, permanent residency and UAE citizenship is not offered to foreigners. To remain indefinitely in the country, you'll need to continually renew your 2-3 year temporary residency permit and keep meeting the requirements.

How can I start a small business in UAE? ›

Absence of taxation

There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.

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There is no minimum salary stipulated in the UAE Labour Law, however it broadly mentions that salaries must cover basic needs of the employees.

The average salary for Helper is AED 1,500 per month in the Dubai, United Arab Emirates Area.

To open a bank account in the UAE, you must earn a minimum monthly salary of AED 5,000 (differs from bank to bank) and present a No-objection Certificate (NOC) from your employer. Now, freelancers don't get employed, so they can't show the NOC and also don't get a fixed monthly salary.

How much is the cheapest Dubai freelance visa? The price of the freelance visa in Dubai is made up of the freelance permit cost + the actual visa fees. The cheapest cost of a freelance permit is 7,500 AED. Freelance visa under this permit is 2,000 AED for Establishment card, and 5,000 AED for the resident visa.

freelance visa benefits

They will help guide you on facilitating all essential paperwork, such as the residence visa, Emirates ID and getting your medical insurance sorted. They will promote your profile and work throughout our community to give you a helping hand as you kick-start your freelancing journey.

For non-UAE residents seeking a long-term visa, there is a multiple-entry interim visa for six months. This scheme is ideal for those foreigners looking to live, work or study in the UAE without local sponsorship. The permit also allows you to have a total ownership stake in an enterprise in the UAE.

How much is a 1 year work visa in Dubai? ›

The fee of the 1-year visa UAE is USD 287 per applicant. However, keep in mind that you are also required to obtain an insurance policy and will be liable to processing and Emirates ID fees.

The letter must be signed by ALL partners/owners of the company (as shown in the trade license). b) Copy of Trade License. c) Copy of ALL partners/owners passport and UAE visa page. d) 3 months up to date bank statement of the company (originally stamped by the bank) with a minimum balance of not less than AED 3000.

According to some sources, the price for the visit visas are as follows: Single entry (30 days): AED 350 (USD 95) Multiple entries (3 months): AED 650 – 697 (USD 176 – 190)

Although the retirement age for expat residents in Dubai and UAE is 60 years, they are allowed to continue working till the age of 65 years, provided their employers can secure the necessary permits. However, employees who are above 60 years need to apply for work permits via MoHRE.

Dubai 3-Month Visit Visa Price

The fee for a standard processing, single-entry visa valid for three months in Dubai is AED 800. The prices for a visa to stay in Dubai for three months include all applicable taxes and service charges. The cost of a multiple-entry visa valid for three months in Dubai is AED 2,250.

With the travel and tourism industries returning to normalcy, and under the UAE's new visa rules, expats can now choose to live and enjoy the high standard of living that the country offers to its residents without a work visa.

Expatriate residents, both employers and employees, may sponsor their families in the UAE provided they have a valid residency permit.

There are various costs that need to be considered here. One is the sponsor registration file that costs AED 268.90, while the cost for a spouse, child and parent is AED 488.90 each – if they are coming to Dubai from outside the UAE.

How do I set up a self-employed job? ›

Wage and Tax Statement for Self Employed (1099). These forms prove your wages and taxes as a self employed individual. It's one of the most reliable proofs of income you can produce since it is a legal document. Profit and Loss Statement or Ledger Documentation.

You usually must pay self-employment tax if you had net earnings from self-employment of $400 or more.

Real estate and skilled trades are lucrative fields for those who wish to be their own bosses. New self-employed positions with high earning potential include digital marketer, writer and programmer. Jobs that can provide a side income include rideshare, food delivery and child care.

Do I need to register for self-employment? All self-employed people need to register with the HMRC (HM Revenue & Customs) so that they can pay tax on money earned through self-employment. Registering with the HMRC will not automatically register you for benefits. Registering with the HMRC is very simple.

Though the United States Citizenship and Immigration Services (USCIS) often use the term “employer” when referring to work visa sponsors, in the case of O-1, you don't have to be an employee to obtain the visa. As an independent contractor, your O-1 visa application can be sponsored by an agent.

UK income tax rates and bands for 2022/23 are:

0% tax on income up to the tax threshold of £12,570. 20% tax on earnings between £12,571 and £50,270. 40% tax on earnings between £50,271 and £150,000. 45% on earning over £150,000.

Income tax when self-employed

When you're self-employed, you pay income tax on your trading profits – not your total income. To work out your trading profits, simply deduct your business expenses from your total income. This is the amount you'll pay Income Tax on.

A self-employed person does not work for a specific employer who pays them a consistent salary or wage. Self-employed individuals, or independent contractors, earn income by contracting with a trade or business directly.

Is a bank statement proof of income? ›

Pay stubs, tax returns, bank statements, and a letter of employment are the most common and best proofs of income. However, depending on an applicant's employment status, supplemental forms like Social Security statements or profit and loss statements can provide proof of earnings.