UAE: Zero Income Tax, High Adoption Rate Makes 5Th Most Crypto-Friendly Globally

The UAE has been ranked the world's 5th most crypto-friendly country in 2025.

According to the Crypto Wealth Report 2025 released by Henley & Partners and New World Wealth, the UAE is the world's most tax-friendly country, as there is zero tax on cryptocurrencies.

“The UAE combines one of the most crypto-friendly tax environments with high levels of digital adoption, attracting both retail users and businesses. Strong government backing, including Dubai's Virtual Assets Regulatory Authority and the Central Bank's Digital Dirham programme, underpins a thriving ecosystem for blockchain innovation and financial services,” said the report.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The UAE was ranked first in tax-friendliness, along with Monaco, for zero tax, and second globally for crypto adoption after the US. The Emirates is ranked fourth in innovation and technology.

The index evaluates 29 investment migration programmes across six key parameters - public adoption, infrastructure adoption, innovation and technology, regulatory environment, economic factors, and tax-friendliness - enabling investors to identify jurisdictions that best match their priorities.

Basil Mohr-Elzeki, Managing Partner at Henley & Partners, North America, said Dubai is a desert oasis for digital assets.

“Perhaps the most comprehensive strategy for attracting crypto wealth is seen in the UAE, a crypto entrepreneur's dream, with zero taxes on crypto trading, staking, mining, or selling across all seven emirates. But the appeal transcends mere tax optimisation. When Dubai created its Virtual Assets Regulatory Authority in 2022, it did something nobody else had done - built a regulator exclusively for virtual assets. The UAE approached this methodically: the DMCC Crypto Centre now houses over 650 blockchain companies, while dedicated visa tracks serve tech entrepreneurs. This is infrastructure by design,” he said.

“The UAE's Residence by Investment initiative, the UAE Golden Visa, available through several categories including Dh2 million in real estate investment, offers 10-year renewable residence - a timeframe that aligns perfectly with the long-term vision of serious blockchain builders,” Mohr-Elzeki added.

Frederik Bussler, owner of New York marketing firm Bussler & Co, said Dubai attracts high-net-worth digital asset investors with its world-class infrastructure and a regulatory environment that explicitly courts crypto entrepreneurs through the Golden Visa programme, offering 10-year renewable residence permits.

“The UAE has the highest crypto ownership rate in the world, with nearly 30 per cent of residents owning cryptocurrency,” he said.

Globally, Singapore leads the Crypto Wealth Report 2025, followed by Hong Kong, the US, Switzerland, and the UAE.

The ranks of crypto millionaires have surged to an unprecedented 241,700 individuals worldwide, a remarkable 40 per cent increase in just 12 months, fuelled by a dramatic surge in Bitcoin millionaires - up 70 per cent year-on-year to 145,100 holders.

MENAFN24092025000049011007ID1110106649