ISRAEL → UAE
Moving your business from Israel to the UAE: where is your centre of life?
Short answer
Israel taxes you as a resident if your centre of life is in Israel.
Day counts create presumptions, but either side can challenge them.
The centre of life test
- An Israeli resident is a person whose centre of life is in Israel. Source
- You are presumed resident with 183 days or more in Israel in the tax year. Source
- You are also presumed resident with 30 days in the year and 425 days over that year and the two before. Source
- Either the tax officer or the taxpayer can rebut these presumptions. Source
- You can still be found resident even if you meet neither day test. Source
The UAE side of the move
- Most mainland companies can now be 100% foreign owned. Some activities of strategic importance can still carry limits. Source
- UAE Corporate Tax is 0% on taxable income up to AED 375,000 and 9% above that. Source
- A Qualifying Free Zone Person pays 0% on Qualifying Income. Its other taxable income is taxed at 9%. Source
- Every taxable business must register for Corporate Tax, including free zone businesses. Source
Common questions
If I spend under 183 days in Israel, am I non-resident?
Not automatically. The day counts are presumptions. The centre of life test can still make you resident.