Indians looking to relocate to the UAE (especially Dubai), or returning to India after a stint in the UAE, have to deal with tax residency rules, banking and investment regulations, visa routes and administrative formalities. India and the UAE have a Double Taxation Avoidance Agreement (DTAA) since 1992 and most income that originates from India (dividends, interest and royalties) are taxed at lower rates (10%, 5-12.5% and 10% respectively) according to the treaty terms. Indian residents working outside India are generally still Indian tax residents until they are out of India for 182 days or more (the 60 day threshold is relaxed to 182 days if going abroad for foreign employment).




