UAE free zones offer a consistent package of core incentives plus zone-specific benefits. This reference guide summarises all incentives available to UAE free zone companies in 2025.
Core Incentives (All UAE Free Zones)
- 100% Foreign Ownership: No UAE national partner required. Foreign individuals and companies can own 100% of free zone company shares.
- 100% Repatriation of Profits: No restrictions on transferring profits, dividends, or capital out of the UAE.
- 0% Personal Income Tax: No personal income tax on salaries, dividends, or capital gains for individuals.
- 0% Corporate Tax on Qualifying Income: Free zone companies meeting QFZP criteria pay 0% Corporate Tax on qualifying income (see UAE CT Law for QFZP criteria).
- 0% Import/Export Duties: Goods imported into or exported from UAE free zones are exempt from customs duties.
- No Currency Restrictions: Conduct business in any currency without UAE central bank restrictions.
Zone-Specific Incentives
DMCC: Access to the Dubai Gold and Commodities Exchange (DGCX), DMCC traceability platform for responsible sourcing, and dedicated commodity trade finance banking relationships. DIFC: Common law legal system, DIFC Courts (internationally enforceable), and DFSA regulatory passporting. ADGM: Access to Abu Dhabi sovereign wealth fund ecosystem, FSRA regulation, and ADGM Courts (equivalent to DIFC). JAFZA: Co-location with Jebel Ali Port and customs bonded area status. Dubai CommerCity: B2C e-commerce import directly to consumers (unique free zone capability). Hub71 (Abu Dhabi): USD 235 million in startup support funds, subsidised office space, and government partnership introductions.
Corporate Tax Timeline for Free Zones
UAE CT was introduced with financial years starting on or after 1 June 2023. Free zone QFZP entities pay 0% on qualifying income. The 9% standard rate applies to non-qualifying income and all mainland companies above AED 375,000 net profit.