Glossary
Free zone
A designated economic area — common in the UAE — offering 100% foreign ownership and tax incentives to companies that meet its activity and substance conditions.
A free zone is a special economic area with its own registration authority and rules, designed to attract foreign business. In the UAE, free zones offer 100% foreign ownership, streamlined setup and — for a Qualifying Free Zone Person meeting strict activity and substance tests — a 0% corporate tax rate on qualifying income.
Why it matters
Free zones are one of the cleanest routes to a low-tax company plus a residence visa — but the headline 0% depends on meeting conditions that are widely misunderstood, so the detail matters.
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