Djibouti vs United Arab Emirates
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇩🇯 Djibouti — Djibouti Tax System
Djibouti has progressive income tax up to 30%. The country is strategically important as a maritime hub and hosts multiple foreign military bases (US, France, China, Italy, Japan), which provide significant lease revenue. The Port of Djibouti handles ~95% of Ethiopian imports/exports. VAT at 10% was introduced in 2009. Free trade zones offer tax exemptions.
🇦🇪 United Arab Emirates — Emirate-Level Fees & Free Zone Benefits
The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.
Djibouti vs United Arab Emirates: Key Tax Differences (2026)
💰 Income Tax: 🇩🇯 Djibouti has a higher top income tax rate (0–30% vs 0%). 🇦🇪 United Arab Emirates is more favourable for high earners.
🛒 VAT/Sales Tax: Djibouti has a higher consumption tax (10% vs 5%).
🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 25%), benefiting investors.