Masdar City Free Zone, Abu Dhabi (2026): Published Costs, Licences, Visas and Tax

Masdar City Free Zone is Abu Dhabi's sustainability and technology free zone, set inside the low-carbon Masdar City development near Zayed International Airport. If you're comparing Abu Dhabi free zones, this guide explains what Masdar offers in 2026: the legal structures and licence categories, the package and visa prices Masdar published when we checked on 9 October 2026, how desk size controls your visa quota, the set-up steps, how the 0% corporate tax rate really works, and how Masdar compares with ADGM and KEZAD.

Quick answer

Masdar City Free Zone licenses FZ-LLCs and branches for 1,000+ activities, with a focus on clean energy, life sciences, AI, space and smart mobility. On 9 October 2026 its published packages started at AED 7,000 (licence only, up to two activities) and ran to AED 27,000, plus 5% VAT. A one-visa package (Business One) was AED 17,500. Qualifying companies can pay 0% corporate tax on qualifying income.

• 100% foreign ownership and 0% import tariffs

• Visa quota depends on desk: AED 2,000 desk = 1 visa, up to AED 20,000 = 4

• Visa costs on top of a licence-only package: establishment card AED 1,600, eChannels AED 2,600, 2-year visa AED 3,050

• Every company must register for UAE corporate tax

• Prices change — confirm on Masdar's licence page before you pay

What Masdar City Free Zone is

Masdar City is a planned district of Abu Dhabi developed around renewable energy and low-carbon design. Its free zone sits inside the city, about ten minutes from Zayed International Airport and 45 minutes from Dubai by Masdar's own estimate. Masdar describes the zone as the most sustainable free zone and business community in the UAE, and says it's home to one of the largest clusters of LEED Platinum-certified buildings in the world.

The zone is government-owned and runs a One-Stop Shop that handles licensing, visas, office leasing and introductions to banks. Tenants range from start-ups to large organisations: Masdar City's own pages name Siemens Energy, the Mohamed bin Zayed University of Artificial Intelligence, the International Renewable Energy Agency (IRENA), Masdar and G42 Healthcare among them, and its free zone site says more than 2,500 companies operate there.

Masdar's focus sectors are life sciences, space technology, artificial intelligence, energy, smart and autonomous mobility, and agri-tech and water. You don't have to be in one of those sectors to set up, though: the free zone also licenses consulting, trading, marketing, events, HR, food and beverage and other commercial activities, and it says it offers more than 1,000 approved activities in total.

Masdar City Free Zone at a glance (2026)

AED 7,000

Cheapest published package

Licence only, read 9 Oct 2026

1,000+

Approved business activities

100%

Foreign ownership

0%

CT on qualifying income

If all QFZP conditions are met

Legal structures and licence categories

Masdar offers three ways to set up:

• Free Zone Limited Liability Company (FZ-LLC). A separate legal entity owned by one or more individual or corporate shareholders. This is what most new businesses choose, and you can start with a single shareholder.
• Branch of a foreign company. Extends an existing overseas company into Abu Dhabi without creating a new legal entity; the parent company remains responsible for the branch.
• Branch of a UAE company. Lets an existing UAE business operate in the free zone under the same legal identity.

Your licence category follows your activities. Masdar groups them into categories including renewable energy; clean tech and information and communications technology; marketing and events; human resources; energy; healthcare services; service providers; property development services; regional headquarters, trading and holding companies; business or data centres; oil and gas services; and retail, food and beverage.

Some activity segments are treated as "special" and aren't available in the standard packages. Masdar's footnotes list non-profit associations, service providers, regional headquarters, onshore and offshore oil and gas field services, retail and space among the exceptions, and it charges AED 2,500 for each extra general activity and AED 5,000 for each extra special activity. Activities in regulated sectors also need approval from the relevant authority; Masdar names the Department of Health – Abu Dhabi for life sciences and the UAE Space Agency for space technology.

Published packages and prices

Masdar is one of the UAE free zones that publishes its prices. These are the packages on its licence and registration page when we read it on 9 October 2026. The page says fees are subject to 5% VAT, activities are subject to approval, and a special company name costs an extra AED 1,000.

Masdar describes Innovation as its start-up and innovation package for research-driven businesses. A footnote also says start-up package clients convert to a "signature" package after three years, so expect the renewal price to change at that point and ask what it will be before you sign.

Office and visa costs

The packages are only part of the picture. If you need a residence visa, you need a workspace that carries a visa allocation, an immigration establishment card and the visa itself. Masdar's published leasing and immigration prices were:

Flexi desk leases also need a refundable security deposit equal to two months' rent. Masdar's licence page shows a slightly different office table (a virtual desk at AED 6,000 and a flexidesk at AED 10,000 a year), and its eChannels renewal figure appears as "1,6000", which looks like a typo. Ask the One-Stop Shop for a written quote that settles both points.

Worked example: what your first year really costs

A solo consultant who needs a visa. Sara wants an FZ-LLC with two consulting activities and a residence visa for herself, and she's already in the UAE on a visit visa. Building it from the Startup package gives:

• Startup licence AED 7,000 plus 5% VAT: AED 7,350
• Flexi Desk Lite lease: AED 2,000
• Establishment card AED 1,600 and eChannels AED 2,600: AED 4,200
• Two-year visa AED 3,050, medical AED 350, Emirates ID AED 450, change of status AED 900: AED 4,750

That's AED 18,300 in fees, plus refundable deposits of AED 2,500 for the visa and about AED 333 for the desk. The Business One package at AED 17,500 plus VAT (AED 18,375) bundles the same desk, establishment card, eChannels, medical and Emirates ID with one visa and allows three activities, so for a one-visa founder it's usually the simpler buy. The Startup package makes most sense for a holding company or a founder who doesn't need a UAE visa through the company.

A three-person research start-up. A team needing three visas would compare Enterprise (AED 27,000, three-visa quota and a Flexi Desk Plus) with Innovation plus an extra visa allocation. Add the per-person visa, medical and Emirates ID costs and a visa deposit for each employee, and budget for health insurance, which UAE residence visas require.

These are calculations from Masdar's published figures, not a quote. Bank account fees, insurance, audit and accounting costs and corporate tax registration aren't included.

Try it — your Masdar first-year budget

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

How to set up, step by step

Masdar's process is digital, and it says registration can typically be completed in a few working days once documents are submitted and approved.

Setting up in Masdar City Free Zone

1. 1

   Choose your activities

   Pick from Masdar's 1,000+ approved activities. Special or regulated activities may need extra approval.

   Masdar business activities
2. 2

   Choose your legal structure and package

   FZ-LLC, foreign branch or UAE branch, and the package that fits your activity count and visa needs.

3. 3

   Apply through the e-services portal

   Reserve your company name and submit the application and initial details online.

4. 4

   Submit documents and get approvals

   Provide passports, application forms and incorporation documents; approvals come from the free zone and Abu Dhabi authorities.

5. 5

   Sign and receive your licence

   Sign the legal documents and receive your licence and registration certificate.

6. 6

   Lease workspace and apply for visas

   Confirm your desk or office, get your establishment card, then process visas, medicals and Emirates ID.

   Tip: Apply for corporate tax registration with the FTA once the licence is issued.

Documents you'll need

For an FZ-LLC owned by individuals, expect passport copies for each shareholder, director and manager, the application form, details of your proposed activities and, for some activities, a short business plan. Corporate shareholders and branches need certified constitutional documents of the parent company, a board resolution and a certificate of good standing, which usually have to be legalised and attested if they come from outside the UAE. Masdar will also ask for ultimate beneficial owner information, as every UAE company must keep a register of its beneficial owners.

Visas and residency

Residence visas in Masdar are tied to your workspace allocation, as the leasing table shows. Each visa applicant must complete a medical fitness test and Emirates ID biometrics in the UAE, and if they're already in the country on another visa they pay a change-of-status fee rather than an entry permit. Masdar takes a refundable AED 2,500 deposit for each employee visa, released when the visa is cancelled.

Masdar works with Abu Dhabi's General Directorate of Residency and Foreigners Affairs on visa processing and, with the Abu Dhabi Residents Office, helps qualifying investors, entrepreneurs and specialists apply for the UAE Golden Visa. Golden Visa criteria are set federally; for example, the investor route needs an investment of at least AED 2 million.

Corporate tax and VAT

Free zone companies are inside the UAE corporate tax system. Every Masdar company must register for corporate tax with the Federal Tax Authority and file returns, even if it expects to pay 0%. Masdar City's own site says corporate tax exemption is available to qualifying free zone persons earning income from qualifying activities, which matches the federal rules.

To be a Qualifying Free Zone Person (QFZP), a company must meet every condition: keep adequate substance in the free zone, earn qualifying income, not elect to be taxed at the standard rate, keep its non-qualifying revenue within the de minimis limit, and prepare audited financial statements. Qualifying income is taxed at 0%; other taxable income is taxed at 9%. The de minimis limit is 5% of total revenue or AED 5 million, whichever is lower. Breach a condition and you lose QFZP status for 5 tax periods.

The practical point for most Masdar companies is where customers are. Masdar's own guidance gives the example of a consultancy serving clients in Europe, whose income is usually qualifying, and a free zone company that starts billing mainland Abu Dhabi clients, whose income from those contracts would normally be taxed at 9%. The Ministry of Finance's list of qualifying activities sets out the detail. The Federal Tax Authority advises companies to confirm with their free zone authority whether they're in a free zone for corporate tax purposes. Our UAE corporate tax guide covers the AED 375,000 band and Small Business Relief.

VAT works as it does elsewhere in the UAE: you must register once taxable supplies pass the mandatory threshold, and the standard rate is 5%. Masdar's own licence fees carry 5% VAT. Special VAT treatment applies only to "designated zones" listed by Cabinet decision, so check the Federal Tax Authority's list before assuming any VAT advantage. See our UAE VAT guide.

Compliance after you're licensed

Beneficial owners. Under Cabinet Decision No. 109 of 2023, every Masdar company must declare and keep a record of its beneficial owners: anyone who owns or controls 25% or more directly or indirectly, or can appoint or remove most directors. Masdar warns that repeated violations can bring fines of up to AED 100,000 and suspension of the licence under Cabinet Decision No. 132 of 2023.

Renewal. The licence, lease and establishment card renew every year, and the eChannels registration has an annual fee. Visas renew every two years. Start-up package pricing changes after three years, so budget for a higher renewal from year four.

Accounts and tax. Keep proper books from day one. A company seeking QFZP status needs audited financial statements, and every company must file a corporate tax return within 9 months of its financial year end.

Masdar compared with ADGM and KEZAD

Abu Dhabi has several free zones, and they serve very different businesses.

Masdar City Free Zone vs ADGM vs KEZAD

	Masdar City Free Zone	ADGM	KEZAD
Best for	Tech, clean energy, life sciences, consulting and trading start-ups	Banks, funds, fintech, holding and family-office structures	Manufacturing, logistics and industrial businesses
Legal system	UAE law, with an option to use ADGM common law	Own common-law framework and courts	UAE law
Regulator	Masdar City Free Zone; sector bodies for regulated activities	ADGM Registration Authority; FSRA for financial services	KEZAD Group (AD Ports Group)
Workspace	Flexi desks to built-to-suit offices	Physical office usually required	Land, warehouses and industrial plots
Published entry price	From AED 7,000 (9 Oct 2026)	Check ADGM's fee schedule	Check KEZAD's current offers

Best for

Masdar City Free Zone

Tech, clean energy, life sciences, consulting and trading start-ups

ADGM

Banks, funds, fintech, holding and family-office structures

KEZAD

Manufacturing, logistics and industrial businesses

Legal system

Masdar City Free Zone

UAE law, with an option to use ADGM common law

ADGM

Own common-law framework and courts

KEZAD

UAE law

Regulator

Masdar City Free Zone

Masdar City Free Zone; sector bodies for regulated activities

ADGM

ADGM Registration Authority; FSRA for financial services

KEZAD

KEZAD Group (AD Ports Group)

Workspace

Masdar City Free Zone

Flexi desks to built-to-suit offices

ADGM

Physical office usually required

KEZAD

Land, warehouses and industrial plots

Published entry price

Masdar City Free Zone

From AED 7,000 (9 Oct 2026)

ADGM

Check ADGM's fee schedule

KEZAD

Check KEZAD's current offers

ADGM (Abu Dhabi Global Market) is the emirate's international financial centre on Al Maryah Island. It has its own registrar, its own financial services regulator and its own English-language common-law courts, which is why funds, banks, fintechs and holding companies use it. It's usually more expensive and expects a physical office. Masdar has partnered with ADGM so that Masdar-licensed companies can opt to be governed by ADGM's common-law framework, which can matter for shareholder agreements and investor confidence.

KEZAD (Khalifa Economic Zones Abu Dhabi) is run by AD Ports Group and covers 12 economic zones across Abu Dhabi, Al Ain and Al Dhafra, next to Khalifa Port. Its focus is industry and logistics — automotive, food processing, metals, polymers, chemicals and warehousing — so it suits businesses that need land, warehouses or port access rather than a desk.

If your business is a service, tech or research company that wants an Abu Dhabi base with published low entry prices, Masdar is the natural shortlist candidate. If you're in Dubai or comparing emirates, our DMCC free zone guide and Dubai business setup guide cover the main alternatives.

Common mistakes

Buying the cheapest package and adding a visa later. The Startup package excludes office space and visas. Adding them one by one can cost more than a bundled package, so price both before you choose.

Choosing activities too narrowly. Each extra general activity costs AED 2,500. Picking the right two or three activities at the start is cheaper than amending the licence later.

Assuming 0% tax. The 0% rate is for qualifying income only, and mainland customers usually aren't qualifying. Register for corporate tax and plan your customer mix.

Ignoring the three-year price change. Start-up pricing converts after three years. Ask for the renewal price in writing.

Official links

• Masdar City Free Zone — licence and registrationPackages, visa fees and process
• Masdar City Free Zone — commercial leasingDesk prices and visa allocations
• Masdar City Free Zone — legal and regulationADGM option, residency, UBO declaration
• FTA — free zones and designated zones (TAXP010)Tax treatment of free zones
• Ministry of Finance — qualifying activitiesMinisterial Decision No. 229 of 2025

What to do next

List the activities you need and the number of visas, then price the bundled package against building your own from the Startup licence with the startup cost calculator. Estimate your tax with the UAE corporate tax calculator, and read our UAE business licence guide to compare a free zone with a mainland licence before you apply.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does a Masdar City Free Zone licence cost?

On 9 October 2026, Masdar City Free Zone published four packages: Startup at AED 7,000 (up to two activities, licence only), Innovation at AED 12,000, Business One at AED 17,500 with one visa and a flexi desk, and Enterprise at AED 27,000. The page says licence charges are subject to 5% VAT. Extra general activities cost AED 2,500 each.

How many visas can I get in Masdar City Free Zone?

It depends on your workspace. Masdar's leasing page lists a Flexi Desk Lite at AED 2,000 a year with one visa allocation, a Flexi Desk at AED 6,000 with two, a Flexi Desk Plus at AED 10,000 with three and a Dedicated Desk at AED 20,000 with four. Larger offices support more visas.

Is Masdar City Free Zone tax-free?

Not automatically. Masdar says corporate tax exemption is available to qualifying free zone persons earning qualifying income. A company that meets every QFZP condition pays 0% on qualifying income; other taxable income is taxed at 9%. Non-qualifying revenue must stay within 5% of revenue or AED 5 million, whichever is lower. Every company must register for corporate tax.

How long does it take to set up a company in Masdar City Free Zone?

Masdar says registration can typically be completed within a few working days once all documents are submitted and approved, and the process runs through its online e-services portal. Visas take longer because each applicant needs a medical test and Emirates ID biometrics in the UAE.

What is the difference between Masdar City Free Zone and ADGM?

ADGM is Abu Dhabi's international financial centre, with its own financial regulator, company registrar and courts, and it suits banks, funds, fintech and holding structures. Masdar City Free Zone is a commercial and technology free zone focused on sustainability, life sciences, AI, space and clean energy, with lower published entry prices. Masdar also offers companies the option to be governed by ADGM's common law framework.

Can I trade on the Abu Dhabi mainland from Masdar City Free Zone?

A free zone licence covers activities inside the free zone and outside the UAE. To serve mainland customers directly you usually need a mainland licence, a branch or a local distributor. Mainland income also affects your corporate tax position, because it's generally not qualifying income for the 0% rate.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.License and Registration — Masdar City Free Zone · accessed 9 October 2026
2. 2.Commercial Leasing — Masdar City Free Zone · accessed 9 October 2026
3. 3.Legal and Regulation — Masdar City Free Zone · accessed 9 October 2026
4. 4.Business Enabler — Masdar City Free Zone · accessed 9 October 2026
5. 5.Why the Masdar City Free Zone? — Masdar City · accessed 9 October 2026
6. 6.UAE corporate tax for free zone companies explained — Masdar City Free Zone · accessed 9 October 2026
7. 7.Free Zones and Designated Zones for Tax Purposes (TAXP010) — Federal Tax Authority · accessed 9 October 2026
8. 8.Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities — UAE Ministry of Finance · accessed 9 October 2026
9. 9.About KEZAD Group — KEZAD Group (AD Ports Group) · accessed 9 October 2026