Dubai DET vs RAK DAO vs Ajman Freelance License in 2026
Five-figure setup costs. A 9% corporate tax that kicks in above AED 375,000. A Small Business Relief sunset on December 31, 2026. The right freelance license in the UAE is the one that survives both your first year and your fifth.
The Delivvo team· May 10, 2026 7 min read
The UAE issues freelance permits through the mainland economic department in each emirate and through dozens of free zones. In 2026 three options sit on most freelancer shortlists — Dubai DET (Department of Economy and Tourism), RAK DAO (Innovation City), and Ajman Free Zone. They aren't equivalent products. The difference comes down to which mainland or free-zone status you need, which activities you want to be licensed for, and how much you can absorb in setup cost in Year 1.
The decision is also bound to the UAE's corporate tax timeline — the 9% rate above AED 375,000 in profit, and the Small Business Relief that sunsets on December 31, 2026.
What each option is, in plain terms
Dubai DET freelance permit sits on the mainland. Issued by the Dubai Department of Economy and Tourism (and, for media-creative activities, by the Dubai Development Authority's sole-professional license route). Mainland status means you can serve UAE government and mainland-only clients without an additional permit — the most flexibility on local market access.
RAK DAO (Innovation City) is the UAE's first free zone built explicitly for digital, virtual-asset, and Web3 companies. Activities cover crypto, on-chain protocols, AI agent development, DAO-friendly licensing — see the RAK DAO activities list and (the cost calculator now redirects to innovationcity.com after a 2026 rebrand). Useful if your work is genuinely in those activity buckets; less useful as a general-purpose freelance permit.
Ajman Free Zone freelance permit is the entry-tier option. Per third-party UAE setup-agency content tracking AFZ pricing — including Arnifi's 2026 cost breakdown and Emirabiz — the base permit runs roughly AED 6,000-7,500 with a full package including a 2-year residency visa landing in the AED 15,000-22,000 range.
A fourth option that often makes shortlists is GoFreelance through Dubai Internet City — AED 7,500/year permit with co-working access, AED 4,600 for a 1-year visa or AED 5,042 for 2-year, and AED 2,000 establishment card, per the official DIC page and GoFreelance.ae.
The 2026 cost map
Approximate first-year all-in cost (permit + 2-year residence visa + Emirates ID + medical), in AED:
| Option | Permit | Year-1 all-in (with visa) | Mainland or Free Zone | |---|---|---|---| | Dubai DET (DDA sole-professional) | ~7,500 | ~14,000 | Mainland | | RAK DAO (Innovation City) | ~12,500-14,500 | ~22,000 | Free Zone | | Ajman Free Zone | ~7,000 | ~15,000-22,000 (depends on visa package) | Free Zone | | GoFreelance (DIC) | 7,500 | ~14,500 | Free Zone |
Two notes on the table:
The published numbers from setup agencies don't always match what you'll see on the official portal once you apply — final cost varies by activity, visa duration, and whether you bundle a co-working seat.
Renewal costs are usually similar to year-one minus the establishment card fee — most freelancers see roughly AED 9,000-15,000 per renewal year.
Eligible activities — the part that decides the choice
The activity classification is what most freelancers under-research and then regret.
Dubai DET / DDA sole-professional permit covers media, design, creative, technology, education, consultancy. The list is wide; the constraint is documentation — university degrees, portfolios, qualifications. If your discipline is mainstream creative or knowledge work, this is the path of least resistance.
RAK DAO covers Web3-native and AI agent activities — crypto trading, on-chain protocol development, DAO operations, AI agent development, virtual-asset compliance work. If you're a Solidity developer or an AI agent freelancer working with crypto-paying clients, this is the only one of the three that matches your activity description cleanly.
Ajman Free Zone covers a wide range of professional and freelancing activities at the lower price point. Less specialized than RAK DAO, less prestigious in the local market than Dubai DET, but the cheapest sustainable annual renewal of the three.
Co-working space with freelancers at desks reviewing project work — the everyday context of the UAE freelance market
The corporate tax math you have to plan around
The UAE's corporate tax rate is 0% on taxable income up to AED 375,000 and 9% above that. Per the Federal Tax Authority's Small Business Relief page and the Ministry of Finance's announcement, Small Business Relief treats taxable income as zero for businesses with revenue at or below AED 3M for tax periods starting June 1, 2023 and ending on or before December 31, 2026 — a sunset that becomes the most consequential planning input for any freelancer setting up now.
Practical implications:
Year 1-2 freelancers. If your gross revenue is below AED 3M, Small Business Relief will likely apply and effective tax is zero through end-2026.
Above AED 3M. Profit above AED 375,000 is taxed at 9%. The actual exposure is on profit, not revenue — so a freelancer billing AED 5M with AED 3.5M of legitimate business expenses may still owe little tax.
Post-December 31, 2026. Unless the relief is extended, the 9% rate applies above AED 375,000 of profit regardless of revenue size. Plan your Year 3-5 model now.
Natural persons. The corporate tax law applies to natural persons only when business turnover exceeds AED 1M. Below that threshold, the regime doesn't apply.
The Small Business Relief sunset isn't a reason to pick one license over another — but it is a reason to model your fifth-year revenue, not just your first.
The Golden Visa upgrade path
The UAE Golden Visa freelance category requires AED 360,000 minimum annual income for the prior 2 years, plus valid health insurance — per the u.ae Golden Visa page and the ICP Golden Residency portal. Application costs land at roughly AED 4,600-10,250 (application AED 2,000-2,500, Emirates ID AED 575, medical AED 320, entry permit AED 1,250).
The 10-year Golden Visa removes the annual visa renewal cycle and unlocks family sponsorship at higher allowance. For a freelancer earning AED 360K+ for two years, the Golden Visa is the right upgrade target — the tier above whatever entry-level permit you started on.
The pattern that holds: enter on Dubai DET / Ajman / GoFreelance / RAK DAO depending on activity, hit AED 360K for two years, upgrade to Golden Visa. The freelance permit costs less in the long run when the Golden Visa replaces the annual renewal.
Market context
The UAE freelance market in 2026 is genuinely scaling. MENA freelancer registrations rose 78% year-over-year per Outsized's Talent on Demand 2025 data; the UAE freelance market specifically grows roughly 10% annually; top day rates reach AED 3,600 per Khaleej Times. The country ranks #2 globally for freelancers and digital nomads. The setup-agency content market reflects that demand — 2026 is the year the UAE freelance permit comparison stops being a niche discussion.
For a freelancer setting up in the UAE in mid-2026:
Web3, crypto, AI agents, on-chain protocols → RAK DAO. It is the only option that matches your activity description without constant clarification.
Mainland-client access matters (UAE government, banks, large local enterprises) → Dubai DET / DDA sole-professional permit. The mainland status removes a barrier free-zone permits don't.
Lowest total annual cost, generic professional activities → Ajman Free Zone. Renewal economics win over five years.
Mainstream tech / creative / knowledge work in Dubai with co-working → GoFreelance via DIC. Honest middle option.
Plan toward Golden Visa. Whatever entry-tier permit you pick, model an upgrade once you hit AED 360K annual income for two consecutive years.
Delivvo gives UAE-licensed freelancers a single branded portal for proposals, contracts, file delivery, and invoices — including UAE-friendly payment rails like Tap, Telr, PayTabs, and IBAN bank-transfer details — so the freelance permit you picked above runs alongside a client-facing layer that looks like a senior consulting firm rather than a one-person Outlook account. See how it works →
The bottom line
Dubai DET wins for mainland flexibility. RAK DAO wins for Web3 and AI activities. Ajman Free Zone wins on multi-year cost. GoFreelance wins on simplicity. None of them is the wrong answer in isolation; the answer depends on which clients you're chasing, which activities you can document, and whether the December 31, 2026 Small Business Relief sunset matters for your business model. Pick once, model the renewal economics through Year 5, and plan toward the Golden Visa as the real long-term residency anchor.
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