Module V·Article III·~1 min read
Taxation in ADGM: Abu Dhabi Financial Center
UAE and DIFC Tax Regime
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What is ADGM
Abu Dhabi Global Market (ADGM) is an international financial center on Al Maryah Island in Abu Dhabi. Established in 2015 as a competitor to DIFC. It has its own legal system (English Common Law), regulator — FSRA (Financial Services Regulatory Authority).
Tax Regime of ADGM
ADGM offers: 0% corporate tax (under a special regime); no VAT for transactions within ADGM; no capital gains tax; no inheritance tax.
Feature: ADGM has signed the Pillar Two agreement with the UAE government: large MNCs (€750 million+ in revenue) in ADGM may fall under a 15% minimum tax through the UAE Domestic Minimum Top-up Tax.
Licensed Types of Activities in ADGM
FSRA licenses: Regulated Activities (asset management, brokerage, custodian, fund management, investment advisor); Non-Regulated Activities (technology companies, professional services, trading).
ADGM Crypto Framework: one of the most advanced regulatory regimes for crypto assets. Licensing of OVAs (Virtual Asset Operators).
DIFC vs ADGM Comparison
| Parameter | DIFC | ADGM |
|---|---|---|
| Regulator | DFSA | FSRA |
| Specialization | Islamic finance + traditional | Asset Management, Tech |
| Size | Larger, more established | Growing rapidly |
| Cost | More expensive | Slightly cheaper |
| Crypto assets | Limited | Advanced framework |
Practical Assignment
A family office with $200 million in assets is seeking a jurisdiction for registration in the UAE. Clients — families from Russia, Kazakhstan, India. Assets: shares of public companies, PE funds, real estate. Compare DIFC and ADGM as platforms for a family office: regulatory requirements, cost, taxes, reputation.
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