UAE Golden Visa & Tax Residency: What You Need to Know (2026)
This is the most common question for many people!!!
In recent times, we have observed a lot of people relocating to the UAE on the basis of having a Golden Visa. Assuming that holding a Golden Visa, which is a long-term residence visa, automatically qualifies them to be a tax resident of the UAE. This is a fundamentally misunderstood concept, especially among entrepreneurs, investors, high-net-worth individuals, and professionals.
However, in reality, a UAE Golden Visa alone does not make you a UAE tax resident. The status to become a Tax resident is determined based on specific legal criteria, not just the long-term visa status alone.
In this blog, we will understand the difference between residency and tax residency, the official UAE tax residency rules, and how the Golden Visa holders can qualify to get the UAE tax residency certificates (TRC).
Disclaimer: The scenarios mentioned in this blog are illustrative and created solely for educational purposes.
What Is the UAE Golden Visa?
As we know, the UAE Golden Visa is a long-term residence visa (5 or 10 years) granted to eligible individuals such as:
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Investors and entrepreneurs
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Business owners and shareholders
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Highly skilled professionals
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Scientists, doctors, and engineers
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Real estate investors
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Outstanding students
The Golden Visa provides residency security, business flexibility, and lifestyle benefits; however, it is not a tax document.
The Simple Rule is Golden Visa ≠ UAE Tax Residency
Any Individual who holds a Golden Visa means:
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They are a UAE resident for immigration purposes
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But not a UAE tax resident by default
Tax residency regulations are governed by Cabinet Decision No. 85 of 2022 on Tax Residency, not by visa regulations.
How Does the UAE Define Tax Residency?
As per the UAE law, tax residency depends on the individual's presence and economic connection, not just the type of visa they hold.
Tax Residency for Natural Persons (Individuals)
Being a Natural Person, you are considered a UAE tax resident only if any one of the following conditions is satisfied:
1️ Physical Presence Test – 183 Days
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You need to spend 183 days or more in the UAE during a consecutive 12-month period, it can be with any number of ins and outs.
2️ Alternative Presence Test – 90 Days
You spend 90 days or more in the UAE and:
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You have a permanent place of residence in the UAE, or
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You have an employment or a business in the UAE
3️ Centre of Life Test
Considering that you were not able to stay in the UAE for even 90 days, the tax residency may be applicable if:
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Your primary home, family, business, and economic interests are in the UAE
P S: Holding a Golden Visa alone does not satisfy any of these tests automatically.
Does a Golden Visa Help in Obtaining a UAE Tax Residency Certificate (TRC)?
The answer to this question is yes, but indirectly.
While we now understand that holding a Golden Visa does not grant tax residency by itself, it supports a TRC application on the basis of the following reasons:
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It establishes long-term lawful residence
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It strengthens the centre of life argument
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It supports banking, tenancy, and business presence
However, you still need to meet the conditions of:
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Day-count requirements
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Supporting documentation requirements
Documents Required for UAE Tax Residency Certificate
Golden Visa holders applying for a Tax Residency Certificate need the following documents:
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UAE residence visa (Golden Visa)
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Passport and Emirates ID
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Entry/exit report from ICP
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UAE tenancy contract or property ownership proof
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UAE bank statements (6 months)
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Employment contract or business license
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Utility bills or proof of local ties
Practical Examples
Example 1–Golden Visa but Not a Tax Resident
An investor holds a UAE Golden Visa, but:
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Spends only 40 days per year in the UAE
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Has family, business, and bank accounts abroad
Answer: He is not qualified as a UAE tax resident
Example 2–Golden Visa + 183 Days
A business owner holding a UAE Golden Visa:
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Spends 200 days in the UAE
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Runs a UAE company
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Maintains a UAE home
Answer: Qualifies as a UAE tax resident
Example 3–90 Days + Economic Ties
A consultant having a UAE Golden Visa:
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Spends 100 days in the UAE
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Has a UAE employment contract
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Rents an apartment in Dubai
Answer: Qualifies for UAE tax residency
Why Tax Residency Matters (Especially for DTAA Benefits)
UAE tax residency allows individuals to:
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Apply for a Tax Residency Certificate (TRC)
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Claim tax benefits under Double Taxation Avoidance Agreements (DTAA)
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Demonstrate non-residency in high-tax countries
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Avoid dual taxation risks
This is particularly relevant for:
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UK residents
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EU nationals
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Indian and Pakistani business owners
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High-net-worth families
Common Misconceptions About Golden Visa & Tax Residency
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Golden Visa automatically gives tax residency
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No minimum stay requirement
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TRC is issued just based on the visa
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No need for a UAE bank account or home
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Foreign tax authorities accept a visa as proof
These are the fundamentals completely misunderstood; all these are incorrect.
Key Takeaways
Let us remember the below:
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Golden Visa ≠ UAE tax residency
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Tax residency depends on days, residence, and economic ties
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TRC requires documentary evidence, not just a visa
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Proper planning is essential for cross-border tax compliance
Frequently Asked Questions (FAQs)
1 Does holding a UAE Golden Visa make me a tax resident?
Not at all. Tax residency of an individual depends on his/her physical presence and economic connection, not visa type.
2 Can I get a Tax Residency Certificate with a Golden Visa?
Of course, considering that you meet the day-count and substance requirements.
3 How many days do I need to stay in the UAE to be a tax resident?
Either 183 days or 90 days with UAE economic ties, depending on which type of Tax Residency has been applied for.
4 Is Ga olden Visa enough to avoid taxes in my home country?
No. Foreign tax authorities assess tax residency independently. In simple words, holding a Golden Visa is not considered as having a Tax Residency.
5 Can Flying Colour help with TRC applications?
Yes. We assist with eligibility assessment, documentation, and TRC filings.
To learn more about Does the UAE Golden Visa Make You a Tax Resident?, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.