What you want to earn after overheads (tax-free)
Typically 25-35 hours (allow for admin time)
52 minus holidays, sick days, quiet periods
Hourly Rate
AED 220
Day Rate (8 hrs)
AED 1,761
Total Needed
AED 317,000
Billable Hours
1440/yr
How to set freelancer rates in UAE?
Calculate your target annual income, add visa and insurance costs, then divide by your billable hours. In the UAE, there is no personal income tax, so your rate only needs to cover your living expenses and business overheads. Research market rates in your industry and location (Dubai rates tend to be higher than other emirates).
What are typical visa costs for freelancers?
Freelance visa packages typically cost AED 7,000-15,000 per year depending on the free zone. Dubai Media City, twofour54 (Abu Dhabi), and ADGM each have different pricing. Costs include the freelance permit, visa stamping, medical test, Emirates ID, and mandatory health insurance.
How many billable hours should I plan for?
Most freelancers can realistically bill 25-35 hours per week. The remaining time goes to admin, proposals, marketing, invoicing, and professional development. Plan for 46-48 working weeks per year after accounting for holidays (including UAE public holidays), sick days, and quiet periods. Ramadan may also affect your billable hours.
Note: If your annual turnover exceeds AED 375,000, you must register for VAT (5%). Factor this into your client-facing rates.
How to set the right hourly or project rate as a freelancer in the UAE
How do I calculate my freelance rate?
Start with the annual income you need, add your costs (visa, insurance, downtime, coworking), and divide by billable hours. For example, if you need AED 300,000 per year and spend AED 50,000 on overheads, you need to earn AED 350,000. Working 1,600 billable hours per year, your hourly rate should be at least AED 219.
What costs should freelancers include in their rate?
Common costs include freelance visa and permit renewal (AED 7,500 to AED 20,000 per year), health insurance (AED 3,000 to AED 12,000), co-working space (AED 500 to AED 3,000 per month), accounting and bookkeeping (AED 3,000 to AED 8,000 per year), software subscriptions, and a buffer for gaps between projects.
What are typical freelancer rates in the UAE?
Rates vary widely by field and experience. A graphic designer might charge AED 100 to AED 300 per hour. A marketing consultant could charge AED 250 to AED 600. A software developer may earn AED 200 to AED 500 per hour. Senior specialists in finance or legal can charge AED 500 to AED 1,500 per hour. Dubai rates tend to be higher than other emirates.
Should I charge hourly, daily, or per project?
It depends on the work. Hourly rates work well for ongoing support or consulting. Day rates suit short-term engagements like workshops or on-site work. Project-based pricing is best when the scope is clear and you can estimate the time needed. Many freelancers use a mix, with project rates for defined work and hourly rates for ad-hoc requests.
Do I need to charge VAT on my freelance rate?
If your total taxable supplies exceed AED 375,000 over 12 months, you must register for VAT with the FTA (Federal Tax Authority) and charge 5% on top of your rates. Below that threshold, you can register voluntarily if your supplies exceed AED 187,500. VAT-registered freelancers can also reclaim VAT on business expenses.
How many billable hours should I plan for?
Most freelancers bill 60% to 75% of their total working hours. The rest is spent on admin, marketing, invoicing, and finding new clients. In a year of 2,080 working hours (40 hours per week), you might bill 1,400 to 1,600 hours. Setting your rate based on all 2,080 hours would leave you earning less than intended.
How do I handle late payments from clients?
Late payments are common for UAE freelancers. Protect yourself by requiring 30% to 50% up front for new clients, setting clear payment terms (for example, 14 days from invoice date), and charging a late payment fee written into your contract. You can also use invoice factoring services that pay you up front for a small fee.
FTA-Aligned: Based on 2025 FTA rates and regulations. For personal advice, speak to a qualified tax consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms