Glossary of UAE Financial, Tax and Residency Terms

Each definition below comes from one of our guides, which explains the term in full and lists its official sources. Rules change, so check the guide's date and take advice on your own circumstances.

Abu Dhabi Global Market (ADGM)

A financial free zone in Abu Dhabi with its own regulator, the Financial Services Regulatory Authority (FSRA). The ADGM Courts notarise wills for non-Muslims, including wills over assets elsewhere in the UAE.

Explained in Wills, Inheritance and Forced Heirship for Expatriates in the UAE

Accredited service provider (ASP)

E-invoices must be exchanged through a Ministry-accredited service provider (ASP), and each business appoints only one, for both sending and receiving. The Ministry's guidelines say keeping to the roll-out timelines, which include the dates for appointing an accredited service provider, is essential to avoid potential penalties.

Explained in UAE VAT Guide: Registration, Returns, Penalties and E-Invoicing

Also covered in UAE E-Invoicing for Businesses: Who Must Comply, Choosing a Service Provider and What Changes

Beneficial owner

An individual who owns or controls 25% or more of a company, or who otherwise controls it. Most UAE companies on the mainland and in commercial free zones must keep a register of their beneficial owners and file it with their registrar.

Explained in UAE Ultimate Beneficial Owner (UBO) Rules: Registers, Filing Deadlines and Penalties

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Capital Market Authority (CMA)

Since 1 January 2026, the Capital Market Authority (CMA) has licensed firms that give financial advice onshore in the UAE, under Federal Decree-Laws No. 32 and No. 33 of 2025. Its Licensed Companies list shows each firm and its accredited employees.

Explained in How to Choose a Financial Adviser in the UAE

Central Bank of the UAE (CBUAE)

Onshore, life insurance, including savings plans sold as life policies, is regulated by the Central Bank of the UAE (CBUAE). It publishes registers of licensed institutions and insurance entities.

Explained in How to Choose a Financial Adviser in the UAE

Corporate Tax

UAE Corporate Tax is charged at 0% on taxable income up to AED 375,000 and 9% on income above that, for financial years starting on or after 1 June 2023. Every taxable person, including free zone companies, must register with the Federal Tax Authority.

Explained in UAE Corporate Tax Explained: Rates, Registration and Deadlines

Also covered in Do Individuals Pay Tax in the UAE? Salary, Rent, Investments and Freelance Income, Closing a Company in the UAE: Liquidation, Licence Cancellation and Tax Deregistration, UAE Transfer Pricing for Smaller Businesses: Related Parties, Connected Persons and Owners' Salaries, UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax, Owning UAE Property Through a Company: Dubai Rules, Tax and Succession and Buying Property in Dubai as an Expat: The Money Side

DIFC Employee Workplace Savings Plan (DEWS)

One of the approved qualifying schemes into which employers in the Dubai International Financial Centre pay monthly contributions instead of accruing gratuity.

Explained in Retirement Planning for Expatriates in the UAE

Domestic Minimum Top-up Tax

For financial years starting on or after 1 January 2025, the UAE applies a Domestic Minimum Top-up Tax to members of groups with global revenue of EUR 750 million or more in at least two of the four preceding financial years, so that their effective rate reaches 15%.

Explained in UAE Corporate Tax Explained: Rates, Registration and Deadlines

Dubai Financial Services Authority (DFSA)

The regulator of firms in the Dubai International Financial Centre (DIFC). Its public register covers firms, individuals and funds, and lists prohibited or restricted individuals.

Explained in How to Choose a Financial Adviser in the UAE

Dubai International Financial Centre (DIFC)

A financial free zone in Dubai with its own regulator, the Dubai Financial Services Authority (DFSA). The DIFC Courts Wills Service registers wills for people who are not, and have never been, Muslim.

Explained in Wills, Inheritance and Forced Heirship for Expatriates in the UAE

Also covered in When an Expatriate Dies in the UAE: Frozen Bank Accounts, Probate and Estate Administration

E-invoicing

E-invoicing becomes mandatory from 1 January 2027 for businesses with revenue of AED 50 million or more, with smaller businesses following on 1 July 2027. It covers business-to-business and business-to-government transactions, while supplies to consumers are outside its scope.

Explained in UAE VAT Guide: Registration, Returns, Penalties and E-Invoicing

Also covered in UAE E-Invoicing for Businesses: Who Must Comply, Choosing a Service Provider and What Changes

Economic Substance Regulations

Economic Substance reporting was cancelled for financial years ending after 31 December 2022, but obligations and penalties for earlier years remain.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Ejari

Every business needs a physical address, and in Dubai the tenancy contract must be registered with Ejari.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in Owning UAE Property Through a Company: Dubai Rules, Tax and Succession and Buying Property in Dubai as an Expat: The Money Side

EmaraTax

The Federal Tax Authority's online portal, through which VAT returns are filed. An EmaraTax login is also used to apply for a Tax Residency Certificate.

Explained in UAE VAT Guide: Registration, Returns, Penalties and E-Invoicing

Also covered in UAE E-Invoicing for Businesses: Who Must Comply, Choosing a Service Provider and What Changes

End-of-service gratuity

Under the UAE Labour Law, a full-time private sector employee with at least one year of continuous service is entitled to gratuity of 21 days' basic salary for each of their first five years and 30 days for each later year, capped at two years' pay.

Explained in Retirement Planning for Expatriates in the UAE

Also covered in UAE Unemployment Insurance (ILOE): Who Must Join, What It Pays and How to Claim

Escrow account (off-plan)

The project bank account into which a Dubai developer must deposit all payments from buyers of off-plan property. It is opened in the project's name and used only to develop the project.

Explained in Buying Property in Dubai as an Expat: The Money Side

Federal Tax Authority (FTA)

The authority with which every taxable person, including free zone companies, must register for Corporate Tax, and which issues Tax Residency Certificates.

Explained in UAE Corporate Tax Explained: Rates, Registration and Deadlines

Financial Services Regulatory Authority (FSRA)

The regulator of firms in Abu Dhabi Global Market (ADGM). Its public register covers firms, individuals, funds and exempt persons.

Explained in How to Choose a Financial Adviser in the UAE

Forced heirship

In many jurisdictions, the law dictates who inherits your assets. Trusts, foundations and wills can be planned to address forced heirship rules.

Explained in Trust and Estate Planning

Foundation (DIFC or ADGM)

A legal person in its own right, similar to a company but with no shareholders or owners. A council runs it under a charter and, usually, by-laws.

Explained in Foundations in the DIFC and ADGM for Family Wealth and Succession

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax and Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Free look period

Policies from CBUAE-licensed insurers must give you a free look period of at least 30 calendar days, starting from the earliest of the policy issue date, the start of cover or the date you signed. The insurer should refund the full premium, although it may adjust for changes in fund value and deduct approved medical underwriting costs.

Explained in How to Choose a Financial Adviser in the UAE

Free zone company

Free zones allow companies to be fully owned by foreign investors. A free zone company trades within its zone and internationally, but needs a distributor or mainland licence to sell locally.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax and Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Freehold area

An area of Dubai where non-UAE nationals can, with the Ruler's approval, be granted freehold ownership of property. The DLD says companies owned by non-UAE nationals may register property there if they are registered in a Dubai free zone, or in another emirate under an agreement with the DLD.

Explained in Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Also covered in Buying Property in Dubai as an Expat: The Money Side

Golden Visa

The UAE Golden Visa is a long-term, renewable residence visa that needs no local sponsor and stays valid however long you spend outside the UAE.

Explained in UAE Golden Visa Guide: Who Qualifies and How It Works

Also covered in Owning UAE Property Through a Company: Dubai Rules, Tax and Succession and Buying Property in Dubai as an Expat: The Money Side

Green Visa

A five-year residence visa available to investors and business partners. In Dubai, the GDRFA requires the investor's paid share to be at least AED 1 million.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Holding company

A company set up to own shares in other companies, its subsidiaries, rather than to trade itself. On the mainland, a holding company may carry on its activities only through its subsidiaries.

Explained in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Also covered in Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Initial approval

A step in setting up a mainland company: it confirms the government has no objection to the business but does not yet let it trade.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Loan-to-value (LTV)

A mortgage's size as a share of the property's value. Central Bank rules cap an expatriate's first-home mortgage at 80% of the value below AED 5 million and 70% above it, and any off-plan purchase at 50%.

Explained in Buying Property in Dubai as an Expat: The Money Side

Mainland company

A company licensed by the economic department of an emirate, which can trade across the UAE. Foreign investors can own up to 100% of a mainland company in most sectors.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Offshore company

A company registered with an offshore registry, such as JAFZA Offshore or RAK ICC, used mainly for holding shares, property and international structures. A JAFZA offshore company cannot carry on commercial activity with persons in the UAE.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax and Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Oqood

The Dubai Land Department system through which a developer registers an off-plan sale contract in the provisional register, within 90 days of signing.

Explained in Buying Property in Dubai as an Expat: The Money Side

Participation exemption

The Corporate Tax exemption for foreign dividends, and for gains on selling shares, where the shareholding is a participating interest: broadly at least 5% of the shares, or an acquisition cost of at least AED 4 million, held for an uninterrupted period of at least 12 months, with further conditions.

Explained in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Probate

A will only takes effect on death and must be proved through probate. The DIFC Courts Wills Service issues probate for DIFC wills, and probate for ADGM wills is handled by the Abu Dhabi Judicial Department.

Explained in Wills, Inheritance and Forced Heirship for Expatriates in the UAE

Also covered in When an Expatriate Dies in the UAE: Frozen Bank Accounts, Probate and Estate Administration

Qualifying Free Zone Person (QFZP)

A free zone company that pays 0% Corporate Tax on its qualifying income, provided it meets conditions that include adequate substance and audited financial statements. Its other income is taxed at 9%.

Explained in Setting Up a Company in the UAE: Mainland, Free Zone or Offshore

Also covered in UAE Transfer Pricing for Smaller Businesses: Related Parties, Connected Persons and Owners' Salaries, UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax and Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Qualifying recognised overseas pension scheme (QROPS)

An overseas scheme to which a UK pension can be transferred. Transfers to a QROPS can carry a 25% overseas transfer charge.

Explained in UK Expatriates in the UAE: Tax Residence, Pensions and Inheritance Tax

Retirement residence permit

Retired foreign nationals can get a five-year, renewable UAE residence visa without a sponsor. The federal rules ask for at least 15 years of work or an age of 55, while Dubai asks for both.

Explained in The UAE Retirement Visa: Who Qualifies at 55 and How It Works

Sanadak

The UAE financial and insurance ombudsman unit. For banks, insurers and other firms licensed by the Central Bank, it can review a complaint once you have complained to the firm and waited 15 calendar days.

Explained in How to Choose a Financial Adviser in the UAE

Savings Scheme (MOHRE)

A voluntary alternative end-of-service benefits system run by the Ministry of Human Resources and Emiratisation (MOHRE) under Cabinet Resolution No. 96 of 2023.

Explained in Retirement Planning for Expatriates in the UAE

Service charge

Annual charges approved by the Real Estate Regulatory Agency (RERA) that owners in a building or community with shared areas pay to manage, operate, maintain and repair the common parts. The DLD's service charge index shows the approved rates.

Explained in Buying Property in Dubai as an Expat: The Money Side

Small Business Relief

Small Business Relief allows a resident person with revenue of AED 3 million or less to be treated as having no taxable income for the period. It has been extended to tax periods ending on or before 31 December 2029.

Explained in UAE Corporate Tax Explained: Rates, Registration and Deadlines

Also covered in Do Individuals Pay Tax in the UAE? Salary, Rent, Investments and Freelance Income, UAE Transfer Pricing for Smaller Businesses: Related Parties, Connected Persons and Owners' Salaries and Owning UAE Property Through a Company: Dubai Rules, Tax and Succession

Statutory Residence Test (SRT)

The UK test that decides your UK residence for each tax year, which runs from 6 April to 5 April.

Explained in UK Expatriates in the UAE: Tax Residence, Pensions and Inheritance Tax

Surrender charges

Charges on a savings plan sold as life insurance that can mean you get back less than you paid in if you stop early. Under CBUAE rules they should be disclosed in the policy documents, marketing and illustrations, and in some cases a surrender value can be zero.

Explained in How to Choose a Financial Adviser in the UAE

Tax Group

A UAE resident parent company and the resident subsidiaries in which it holds at least 95% can apply to the FTA to form a tax group, which is treated as a single taxable person represented by the parent.

Explained in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Also covered in Preparing for a Statutory Audit in the UAE: Who Needs One, Deadlines and Documents

Tax Residency Certificate (TRC)

A certificate issued by the Federal Tax Authority (FTA) to prove that an individual or company is tax resident in the UAE, for example to claim relief under a double taxation agreement. Individuals usually qualify with 183 days in the UAE in 12 consecutive months, or 90 days with a residence permit and a UAE home, job or business.

Explained in UAE Tax Residency Certificate: Who Qualifies, Documents, Fees and Validity

Also covered in UAE Holding Companies: Mainland, Free Zone, DIFC and ADGM Options and Corporate Tax

Unemployment Insurance Scheme (ILOE)

Known as ILOE (Involuntary Loss of Employment), it is compulsory for almost all private sector and federal government employees, Emiratis and residents alike. After at least 12 consecutive months of subscription, if you lose your job for a reason other than resignation or disciplinary dismissal, it pays 60% of your average basic salary for up to 3 months per claim, capped at AED 10,000 or AED 20,000 a month.

Explained in UAE Unemployment Insurance (ILOE): Who Must Join, What It Pays and How to Claim

Value Added Tax (VAT)

UAE VAT is charged at a standard rate of 5% and has applied since 1 January 2018. A business must register once its taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days.

Explained in UAE VAT Guide: Registration, Returns, Penalties and E-Invoicing

Also covered in Do Individuals Pay Tax in the UAE? Salary, Rent, Investments and Freelance Income, Closing a Company in the UAE: Liquidation, Licence Cancellation and Tax Deregistration, UAE E-Invoicing for Businesses: Who Must Comply, Choosing a Service Provider and What Changes, Owning UAE Property Through a Company: Dubai Rules, Tax and Succession and Buying Property in Dubai as an Expat: The Money Side

Waqf

A charitable endowment. Under the Civil Transactions Law, the UAE assets of a foreigner who dies with no heirs become a waqf supervised by the competent authority.

Explained in Wills, Inheritance and Forced Heirship for Expatriates in the UAE