Global mobility is at its peak. Many professionals, entrepreneurs, investors, and property owners now divide their lives between the UAE and the UK. But with cross-border living comes one of the most common questions:

“Do I have to pay taxes in both countries?”

This guide breaks down everything you need to know about tax residency, double taxation, and how to stay compliant, while also covering crucial AML/CFT responsibilities in real estate—an area closely linked to tax transparency and financial crime prevention.
Swenta, as a leading audit and tax consultancy, simplifies these complex concepts for individuals and businesses operating between the UAE and the UK.

Do You Pay Taxes in Both Countries? It Depends on Your Tax Residency

Before understanding whether you might be taxed twice, you need to know where you are considered a tax resident.

Tax Residency in the UAE

The UAE introduced clear tax residency rules:

• You are a UAE tax resident if you:
  ✔ Live in the UAE for 183+ days, or
  ✔ Have a permanent place of residence, or
  ✔ Have strong economic ties to the UAE.

The UAE does not charge personal income tax, so being a UAE resident is often beneficial.

Tax Residency in the UK

The UK uses the Statutory Residence Test (SRT):

• You are a UK tax resident if:
  ✔ You spend enough days in the UK,
  ✔ You have a home there,
  ✔ You work full-time in the UK, or
  ✔ You have strong ties (family, property, work, etc.).

The UK taxes residents on their worldwide income.

So will you be taxed twice?

Not necessarily.
The UAE-UK Double Taxation Agreement (DTA) prevents citizens and expatriates from paying taxes on the same income twice.

However, you must declare your income in the correct country based on residency rules.
A tax advisor—like Swenta—helps you determine your status accurately.

Why Real Estate is a Target for Financial Crime

Globally, real estate has become one of the preferred channels for money laundering. Criminals use property transactions to hide illegal money, obscure ownership, or move large funds across borders.

Why Real Estate Attracts Criminals

1. High-Value Transactions
   Properties allow criminals to move massive amounts of money in a single deal.

2. Less Regulation Than Banking
   Real estate historically had weaker checks compared to banks, giving criminals opportunities to hide ownership behind shell companies, nominees, or proxies.

3. Difficult to Trace Once Invested
   Once funds are converted into property, they become harder for authorities to track and confiscate.

4. Impact on Society
   In some countries, money laundering artificially inflates property prices, pushing locals out of the market and damaging communities.

This is why strict AML/CFT measures in real estate are now required internationally—including in the UAE and UK.

What Is a Risk-Based Approach (RBA) in Real Estate?

A risk-based approach means focusing more effort and stricter checks on high-risk transactions rather than treating all deals the same.

According to FATF (Financial Action Task Force) guidelines, every country must ensure that real estate professionals can:

• Identify high-risk clients or transactions

• Enhance due diligence where needed

• Apply standard procedures to low-risk cases

AML consultants in Dubai, such as those at Swenta, help agencies set up effective RBA frameworks tailored to their business model.

How Real Estate Professionals Should Apply an RBA

To stay compliant and avoid exposure to financial crime, real estate agents, brokers, and developers must follow key procedures:

1. Know Your Customer (KYC)

Verify both buyer and seller identities and identify the ultimate beneficial owner (UBO)—the real person behind the money.

2. Understand the Deal

Assess the purpose behind the transaction.
Warning signs include:

• Unusual pricing

• Complex ownership structures

• No clear economic reason

• Offshore company involvement

3. Trace the Source of Funds

Check where the money used in the transaction originates.
Cash-heavy purchases or foreign transfers from secrecy jurisdictions require additional checks.

4. Monitor Long-Term Clients

Real estate professionals should watch for:

• Sudden changes in buying patterns

• Large cash deals

• Unexplained increases in investment activity

5. Consult AML Advisors in the UAE

Experts help build policies, risk scoring systems, reporting structures, and compliance frameworks.

Swenta offers this support without overwhelming your operations, making compliance simpler and more practical.

Role of Supervisors and Regulators in the UAE

While businesses must perform their duties, supervisory bodies also play an essential role.

The UAE’s main authority is:

AMLD – Anti-Money Laundering and CFT Supervision Department

Established under the Central Bank of the UAE (CBUAE), the AMLD has:

• Strengthened AML regulations

• Introduced fines and penalties

• Mandatory risk-based compliance

• Training and guidance for real estate professionals

• Continuous monitoring of high-risk sectors

Because the UAE continues to grow rapidly, strict oversight ensures that criminals cannot exploit new or developing markets.

Special Focus on Emerging or Underdeveloped Real Estate Markets

Growing markets are often the easiest for criminals to target.
Authorities must pay extra attention to:

• New real estate companies

• Brokers with little AML awareness

• Regions with weak compliance systems

• Businesses lacking clear controls

Building capacity, enforcing training, and increasing supervision help protect these markets.

Practical Steps to Strengthen AML Controls in Real Estate

To improve compliance and reduce risks:

• Create detailed due diligence checklists

• Use digital tools to highlight suspicious transactions

• Train staff regularly

• Implement strict policies for high-risk deals

• Apply ongoing monitoring—not just one-time checks

• Seek guidance from certified AML consultants in the UAE

Swenta can help businesses design practical frameworks that meet UAE regulations while remaining manageable.

Whether it’s taxation between the UAE and the UK or AML/CFT compliance in real estate, the financial landscape is becoming more interconnected and regulated than ever.

Understanding where you are a tax resident, how double taxation agreements apply, and why AML controls in real estate matter is essential for staying compliant and protecting your wealth.

Professional guidance ensures you don’t face unexpected penalties—or unknowingly fall into non-compliant activities.
Firms like Swenta support individuals, investors, and businesses with clear, reliable tax and compliance advice tailored to cross-border operations.