Treaty withUnited Kingdom
The UAE and the United Kingdom tax treaty.
What the treaty means if you or your company has income, profits or residence in both countries.
Position as at 11 November 2026
Applies from: Art 26(2): withholding taxes on amounts paid from 1 Jan 2017; UK corporation tax from 1 Apr 2017; UK income tax and capital gains tax from 6 Apr 2017; other UAE taxes for taxable years from 1 Jan 2017
Entry into force: 25 December 2016
Signed: 12 April 2016
Withholding rates
What tax is taken at source.
Last checked 11 November 2026. Sources
| Payment | Treaty cap | Domestic rate without treaty | Conditions and evidence |
|---|---|---|---|
| DividendsArt. 10 | 0% | UK rate without the treaty: 0% (20% on REIT property income distributions, rising to 22% from 6 April 2027) | Exempt in the UK, except up to 15% on some UK property fund dividends. 2 of 2 official sourcesArt. 10
|
| InterestArt. 11 | 0% or 20% | UK rate without the treaty: 20% on yearly interest, rising to 22% from 6 April 2027 | 0% if the UAE lender qualifies under Art 11(3); otherwise the UK's 20% on yearly interest, rising to 22% from 6 April 2027. 2 of 2 official sourcesArt. 11
|
| RoyaltiesArt. 12 | 0% | UK rate without the treaty: 20% | Taxed only in the UAE when a UAE resident is the beneficial owner. 2 of 2 official sourcesArt. 12
|
The treaty can reduce the rate to the lower of the two, usually only once you claim it with a UAE tax residence certificate. The UAE charges 0% on these payments. Position as at 11 November 2026.
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Sources for the United Kingdom treaty
4 of 4 official sourcesApplies from: Art 26(2): withholding taxes on amounts paid from 1 Jan 2017; UK corporation tax from 1 Apr 2017; UK income tax and capital gains tax from 6 Apr 2017; other UAE taxes for taxable years from 1 Jan 2017
Entry into force: 25 December 2016
Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Tax Evasion and Avoidance with respect to Taxes on Income and on Capital Gains (with Protocol)
HMRC UK-UAE Convention synthesised text, Art 26(1)
Last checked 11 November 2026
HMRC UK-UAE Convention synthesised text, Art 26(1)UAE MLI position, OECD
Last checked 11 November 2026
UAE MLI position, OECDUAE Ministry of Finance, treaty table (2023)
Last checked 11 November 2026
UAE Ministry of Finance, treaty table (2023)UAE Ministry of Finance, treaty dashboard
Last checked 11 November 2026
UAE Ministry of Finance, treaty dashboardWhat changed on this page
No checked change events are available in this dataset.
Position as at 11 November 2026. How we check
Moving from the United Kingdom
Where you are resident for tax.
UAE individual: under UAE law "domiciled in the United Arab Emirates or has his habitual abode or centre of vital interest in the United Arab Emirates"; UAE non-individual: incorporated or otherwise recognised under UAE law (Art 4(1)(a)). No nationality requirement.
Running a company
When a business in the United Kingdom is taxed in the UAE.
Mutual agreement between competent authorities; without agreement no treaty relief except under Arts 21 to 23 (Art 4(4) and Protocol).
Selling assets
Selling shares or property.
May be taxed where the property is (Art 13(1)). Shares or comparable interests deriving "their value or the greater part of their value directly or indirectly from immovable property" may be taxed in the situs state; excludes shares with substantial and regular trading on a stock exchange. No percentage or look-back stated.
Pensions
Pensions and retirement income.
Private pensions: residence state only (Art 17). Government pensions: paying state only, unless resident and national of the other state (Art 18(2)).
Treaty updates
How the multilateral instrument changes this treaty.
Covered tax agreement for both. MLI in force UK 1 Oct 2018, UAE 1 Sep 2019. Effect: WHT 1 Jan 2020; UK CT 1 Apr 2020; UK IT/CGT 6 Apr 2020; UAE other taxes for periods from 1 Mar 2020. Applied: Art 6 (preamble), Art 7 PPT, Art 16 MAP, Art 17.
Checked by PBF against official sources. Position as at 11 November 2026. How we check
PBF UAE Tax Hub. General information, not advice.