In this guide, we’ll break down everything you need to know about how cryptocurrency is taxed in Dubai. We’ll explain the fundamentals of cryptocurrency tax, how different types of transactions are taxed, and share a few tricks that can help you reduce your tax liability.
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Dubai, known for its luxurious lifestyle and booming economy, has emerged as a hotspot for cryptocurrency investors. In this guide, we’ll walk through Dubai’s crypto tax policies and break down what you should know about the city before you consider a move!
In recent years, crypto investors and crypto companies have moved to Dubai due to friendly tax policies and clear regulations.
Besides favorable tax policies, Dubai is considered a booming city that offers low crime rates and an exceptional lifestyle.
Tax-Free Gains: Dubai’s 0% capital gains tax can help wealthy investors save significant portions of their profits. In contrast, wealthy crypto traders may be required to pay up to 37% tax on their short-term capital gains in the United States.
Remember, you are required to spend at least 183 days of the year in Dubai to be considered a ‘tax resident’.
Lifestyle and Infrastructure: Dubai's high standard of living, combined with its state-of-the-art infrastructure, makes it an attractive destination for high-net-worth individuals and digital nomads.
To stay in Dubai long-term, you’ll need to obtain a Visa — which in most cases, are granted when foreigners work for a company registered in Dubai. Types of Visas include:
Here are a few things you should keep in mind before you move to Dubai.
If you’re an American citizen, you may be required to pay American income and capital gains tax — even if you spend the entire year in Dubai. America is one of just two countries who taxes overseas income for citizens.
If you find yourself in this situation, you may be able to reduce your taxes using the foreign earned income exclusion for income earned in Dubai.
Remember, Dubai isn’t the only tax haven for crypto investors.
Other tax-friendly jurisdictions for crypto investors include the United Arab Emirates, Singapore, and certain Caribbean islands, each offering unique lifestyle and financial benefits.
One popular tax haven for US-based investors is Puerto Rico. Because Puerto Rico is a territory of the United States, investors are not taxed on overseas income.
For more information, check out our guide to the best countries for crypto tax.
Let’s cap things off by answering some frequently asked questions about cryptocurrency taxes.
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This guide breaks down everything you need to know about cryptocurrency taxes, from the high level tax implications to the actual crypto tax forms you need to fill out.
