Determination of Tax Residence in the United Arab Emirates
The Major Challenge of Tax Residence
Determining your tax residence should be considered the major challenge of your expatriation project.
Even if it is straightforward to meet the tax residence criteria in the United Arab Emirates, from the perspective of the French tax authorities, it does not automatically make you a non-resident exempt from taxes in France on your worldwide income.
Under French domestic law, to be considered a tax resident of the United Arab Emirates, you must also be considered a non-resident for tax purposes in France. This is where the major challenge lies.
To benefit from the UAE tax regime and the application of the Franco-Emirati tax treaty, you will need to follow all the necessary recommendations to exit French tax residence and secure your non-resident status.
Only then, as a non-resident of France and a resident of the United Arab Emirates, can you fully enjoy the tax advantages of the UAE and avoid any tax risks in France.
With over 10 years of experience, our tax experts will assist you in establishing your non-resident status in France, thus avoiding any risk of challenging your new tax residence in the United Arab Emirates.
The Key Advantages of Tax Residence in the Emirates
Tax residence in the Emirates offers numerous benefits, including the absence of taxes on worldwide income.
However, this does not mean that income from France is not subject to taxation in France. It depends on the tax treaty signed between France and the Emirates, which governs the rules for taxing French-source income paid to a tax resident of the Emirates, to determine if income remains taxable in France and if any tax friction exists.
This applies to French-source rental income, public pension income, capital gains on real estate, or substantial shareholding capital gains (+25% ownership) in a French company.
Understanding the France/UAE tax treaty allows for a precise determination of all tax consequences related to expatriation to the Emirates.
Our tax experts assist you in fully understanding the tax implications of your expatriation, thereby minimizing the impact of taxes on your worldwide income and the risk of potential tax assessments.
Summary of Honoré Advisor's Intervention:
- Comprehensive analysis of the tax case,
- Determination of a list of recommendations to exit French tax residence,
- Analysis of the tax consequences of expatriation,
- Structuring of movable and immovable assets remaining in French territory,
- Management of tax declarations in France,
- Continuous monitoring to ensure your tax compliance in France and the Emirates.