New Laws Affecting Coworking Spaces in 2025: What Business Owners Should Know

As the coworking industry evolves in 2025, space operators face not just market competition but a shifting legal landscape worldwide. From new gig‑economy regulations to employment reforms and licensing requirements, staying compliant is crucial to avoid penalties—and unlock growth opportunities.

This article explores new global regulations and laws affecting coworking spaces in 2025, with a dedicated section on UAE-specific updates. Whether you're running a single workspace in Dubai or a multi-location network, these are the changes you need to know to stay compliant and competitive.

Global Coworking Regulations You Should Know in 2025

1. Safety & Accessibility Compliance across Jurisdictions

Recent EU and UK legislation now mandates strict accessibility for shared offices. This includes step-free access, wide corridors, accessible restrooms, and height-adjustable desks as standard practice—not optional upgrades.

2. Digital Health & Safety Standards

Many jurisdictions now require clear occupancy rules, proper ventilation, sanitizing stations, and health protocols—a legacy of the post-COVID era that remains legally required in many areas.

3. Flexible Work & Employment Regulations

As coworking spaces support freelancers and remote workers, legal clarity around employment models has tightened.

• UK and EU now require explicit contractual terms for part-time or gig workers.
• Some U.S. states have introduced gig-worker labor protections.
• Canada and Australia have strengthened criteria to discourage misclassification of employees.

These changes affect how occupiers use coworking spaces, and spaces that offer “office-as-a-service” or flexible employment need to ensure their lease agreements and member contracts are compliant.

4. Data Privacy and Visitor Logs

GDPR-style laws in multiple regions now insist on secure visitor log systems, access controls, and proper data retention policies. Digital visitor management platforms are increasingly seen as compliance tools—not just conveniences.

5. Landlord-Operator Liability Models Post-WeWork

The collapse of major coworking chains in 2023/24 led to a shift in risk models. Fewer spaces are taking on long-term office leases themselves—instead opting for management agreements or revenue-sharing partnerships with landlords to minimize financial liability.

Key UAE Regulatory Updates Impacting Coworking Spaces

1. Labour Law Reform & Gig Economy Recognition

In 2025, UAE Labour Law (Federal Decree-Law No. 9/2024) now officially recognises freelancing and part-time work contracts, allowing proper licensing for remote and freelance workers.

Operators offering memberships to freelancers must ensure users hold appropriate visas or freelance permits—partnerships with Free Zone authorities may be needed.

2. ADGM Regulations for Remote Work

From April 2025, Abu Dhabi Global Market (ADGM) allows flexible, remote work and part-time roles under formal contractual arrangements. Employers must provide equipment and assume responsibilities similar to local hires.

Implication: Coworking spaces in ADGM must verify tenant compliance—especially for foreign remote workers—to avoid legal liability.

3. Company Structure & Licensing Changes

Major reforms allow 100% foreign ownership for many business models—notably simplifying business setup for coworking operators and enabling ease of expansion without UAE sponsorship.

Freelance permits, part-time employment models, and startups can now operate under more flexible licensing without joint-ventures or local partners.

4. Corporate Tax & VAT Compliance

The UAE’s Corporate Tax and VAT frameworks require strict adherence:

• Short-term members may trigger VAT liability on daily passes.
• Coworking operators must ensure accurate VAT filing on events, workshops, and services.

5. Health, Safety & Building Regulations

New Abu Dhabi and Dubai municipal regulations now mandate formal health and safety policies in shared offices—such as sanitizing stations, fire safety equipment, and proper ventilation systems, following lessons from the pandemic era.

What Business Owners Should Do Now

A. Audit Your Legal and Licensing Framework

• Ensure that all freelancers, nomads, and full-time members hold valid contracts or freelance permits.
• Confirm that your facility’s zoning allows co-working or shared office operations.

B. Upgrade Visitor Management

• Use digital systems to track visitor identity and duration.
• Maintain records securely and comply with data-access law requests.

C. Update Accessibility & Safety Compliance

• Ensure doorways, bathrooms, and common areas meet accessibility standards.
• Review sanitization and emergency procedure policies for alignment with UAE / UK regulations.

D. Align Contracts for Remote Work

• For members operating under remote work or part-time contracts, ensure you have signed agreements mirroring ADGM or UAE labour provisions.

E. Consider Asset-Light Models

• If you’re leasing directly, weigh risks of long-term rent exposure. Explore landlord-managed or profit-share models as safer alternatives.

Global Implications with Local Relevance

While many of these regulatory shifts began in Western markets, UAE authorities have swiftly followed suit—especially around remote work, gig economy, and workplace health standards. Businesses using coworking spaces globally must now adopt legal due diligence as standard practice, regardless of location.

Summary Table: Key Regulatory Changes & Impacts

Here’s a quick overview of the new laws affecting coworking spaces in 2025:

Regulation Area

Global Update (2025)

UAE/Relevance

Gig Worker Contracts

Legal clarity required for part-time/freelance work

Freelance permits, remote work visa enforcement

Health & Safety Protocols

Sanitizing, ventilation standards mandated

Dubai/Municipality requirements in public spaces

Visitor Data & Privacy

Digital logs required under privacy laws

Heightened scrutiny of ID tracking in shared offices

Landlord Risk Structure

Shift to management agreements over long leases

Expanding adoption in new UAE coworking models

Access & Disability Rights

Mandatory compliance in EU/UK shared offices

Increasing building code support in newer campuses

Foreign Ownership Reform

Not global, but highly relevant to UAE's 2025 reforms

Allows 100% ownership—enabling international operators

Tax & VAT Compliance

VAT-applicable passes and events need clear declarations

UAE’s tax framework requires meticulous filings

Final Thoughts: Regulation as Opportunity, Not Obstacle

Legal reform can feel overwhelming—especially when juggling occupancy, rentals, and member services. But in 2025, compliance is a strategic advantage. Staying ahead of legal changes allows you to:

• Build trust with international tenants
• Avoid fines or license suspension
• Tap into remote worker markets legally
• Offer premium, compliant workspaces to corporate clients

Need help reviewing membership agreements, remote work vetting, or licensing under new UAE laws? Consider engaging legal advisors.

Need Support Staying Compliant?

At TheCoworkingSpaces.com, we can provide updates, checklists, and resources to help coworking operators navigate regulatory changes worldwide.

Contact us to:

• Download a UAE-specific coworking compliance checklist
• Get a template lease and membership contract vetted for 2025 laws
• Sign up for email alerts on upcoming coworking regulation changes
• Stay updated on the latest coworking news and trends via our Blog and external sources