The UAE charges no personal income tax, which makes earning there simple for an NRI. It does not make your Indian income tax-free. Rent from a flat in India, interest on NRO deposits and gains on Indian shares are all still taxed in India.
Tax in India while you live in the UAE
Your salary in the UAE is not taxed there, and India does not tax it either while you are non-resident. Income that arises in India is another matter. Our
UAE tax guide
covers what India taxes, the TDS deducted at source and how the India-UAE tax treaty can reduce it.
A tax residency certificate from the UAE’s Federal Tax Authority is what you need to claim treaty rates in India. Apply before you need it, because Indian banks and property buyers may ask for one.
Watch one rule in particular. If you are an Indian citizen whose Indian income exceeds ₹15 lakh a year and you are not liable to tax in any other country, India can treat you as resident under its deemed-residency rule. Because the UAE levies no personal income tax, UAE-based NRIs with substantial Indian income should check where they stand. The
NRI day tracker
counts your days in India and the UAE together.
Banking and sending money home
Convert your Indian resident account to NRO and use an NRE account for money you send from the UAE; interest on NRE deposits is tax-free in India. Our
NRI banking guide
explains the difference.
The dirham is pegged to the US dollar, so AED-INR moves with the dollar against the rupee. Exchange houses, banks and apps all compete for this corridor, and small differences in the rate add up over years of monthly transfers. Compare them on our
INR converter
or the
AED transfer guide
.
Investing in India from the UAE
Unlike NRIs in the US and Canada, UAE residents face few restrictions from Indian fund houses, so most mutual funds are open to you. Our
investment guide
covers the options.
Costs and rules on the UAE side
- VAT is 5% on most goods and services.
- Corporate tax of 9% applies to business profits above AED 375,000, for financial years starting on or after 1 June 2023. It matters if you run a business, not if you are employed.
- Wills. Register a will covering your UAE assets, through the DIFC or ADGM wills services or the local courts, so that they pass as you intend and bank accounts are not left frozen. Our
inheritance tax guide
explains why this matters more in the UAE than the tax does.
Saving money in the UAE
Figures are as of September 2026.
- Compare the rupees, not the fee. Exchange houses and apps often advertise low or zero fees and recover the difference in the rate. Compare the amount your family will receive on our
AED transfer guide
.
- Tourist VAT refunds are for tourists. The refund offered at UAE airports is for visitors. Residents cannot claim it, so it is not a reason to buy before a trip home.
- Gold for India. Under India’s Baggage Rules 2026, jewellery is allowed in duty-free by weight alone after a year abroad: 40 grams for a woman and 20 grams for anyone else. Bars and coins get no allowance. Our
customs duty calculator
works out the rest.
- Side businesses. An individual only has to register for UAE corporate tax once business turnover passes AED 1 million in a calendar year, and even then the first AED 375,000 of profit is taxed at 0%.
