Global Workforce and Globally Mobile High Net-Worth Individuals (HNWIs)
Introduction
The UAE has become one of the preferred bases for internationally mobile professionals and high-net-worth individuals (HNWIs). Employees of overseas companies are often carrying out their duties from the UAE, drawn by the country’s lifestyle and business advantages. Likewise, many HNWIs choose to reside here while managing both their local and international business interests. This growing mobility brings opportunities but also complex challenges — particularly in taxation, social security, and employment law. As the UAE’s tax and legal framework evolves, the importance of navigating these issues carefully is increasing.
 Tax Considerations
Foreign companies with staff or executives operating from the UAE must assess whether their presence creates a taxable nexus. Two key triggers are:
- Permanent Establishment (PE): if commercial activities in the UAE are sufficient to give taxing rights on attributable profits.
- Place of Effective Management (POEM): if strategic decisions are habitually taken in the UAE, potentially making the company a UAE tax resident on its global income.
Alongside these, under the UAE’s 5% VAT regime, a Fixed Establishment (FE) may arise if the business has a fixed place of operations with adequate human and technical resources. If triggered, these concepts lead to tax registration, compliance filings, and often the need for a local license.
Employment Law Differences
Employment regulation in the UAE depends on jurisdiction. Mainland and most free zones fall under the Federal Labour Law, while the DIFC and ADGM apply their own employment regimes. Businesses must align contracts, visas, and HR processes with the applicable rules and ensure workforce compliance across these frameworks.
Social Security Considerations
Unlike many jurisdictions, the UAE does not levy social security taxes on expatriates. Instead, employers are required to provide end-of-service gratuity under the Federal Labour Law. In certain free zones such as the DIFC, the gratuity system has been replaced with the Defined End of Service Workplace Savings (DEWS) plan, which operates as a funded savings scheme. UAE nationals remain covered under the state pension system, while GCC nationals working across borders must be registered in their home country’s pension scheme — for example, a UAE entity employing a Saudi national must contribute to Saudi Arabia’s General Organization for Social Insurance. Employers must therefore factor gratuity, DEWS, and GCC pension rules into workforce planning and assignment costs.
 Conclusion
The UAE is evolving from being primarily a lifestyle hub to a regulated environment where compliance and strategy go hand in hand. With evolving tax and employment regimes, foreign companies and HNWIs must structure their presence deliberately. Foreign companies must manage the tax and compliance impact of mobile employees, while HNWIs need robust family office and succession planning. With the right management and Baker Tilly’s integrated tax, legal, and structuring support, a UAE presence can become a cornerstone of long-term strategic planning. We combine expertise with practical solutions to ensure compliance while driving sustainable value.
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