UAE free zones come in two categories: financial free zones — DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market), each with its own English common-law system, courts, and regulator — and 40+ commercial (non-financial) free zones run by individual zone authorities under one federal framework. All free zones offer 100% foreign ownership and the 0% corporate-tax rate for a Qualifying Free Zone Person on qualifying income, but they differ sharply in regulation, fees, and intended use. This page covers all three routes; for onshore (mainland) UAE see the United Arab Emirates page.
Federal layer applies across every zone: corporate tax at 9% on profits above AED 375,000 (≈ US$102,000), with 0% for a Qualifying Free Zone Person on qualifying income subject to substance and de minimis conditions; VAT at 5%; no personal income tax; no withholding tax. Each company must keep accounting records and maintain a UBO register under Cabinet Decision No. 58 of 2020, on top of each zone's own rules. A free-zone company generally cannot trade directly with the UAE mainland without a distributor or dual licence.