Capital Gains Tax

Capital gains tax is a levy imposed on the profit earned from the sale of assets such as real estate, shares, or businesses. While the UAE does not impose a federal capital gains tax, there may be exceptions for businesses operating in financial free zones like DIFC and ADGM, where international tax principles may apply. Additionally, companies subject to Corporate Tax (introduced in 2023 under Federal Decree-Law No. 47 of 2022) may be required to pay taxes on gains arising from the sale of certain assets. Foreign investors should also consider potential capital gains taxation in their home countries when disposing of UAE assets.

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Disclaimer

This article is intended for general informational purposes and does not constitute legal advice. The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advice to ensure the best possible solution for your individual circumstances.

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ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.

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Capital Gains Tax