Everyone is currently talking about emigrating to Dubai. But why should you emigrate, what is the process like and what costs do I usually have to expect?
In this comprehensive guide, we answer all the important questions about emigrating to Dubai, from advantages and disadvantages to requirements / procedures, costs and personal experiences from the local area.
Why emigrate to Dubai?
The central question that many people ask themselves at the beginning is: Why do so many people emigrate to Dubai and does Dubai make sense for me? This question is crucial, which is why the most important advantages and disadvantages are compared here.
Advantages
The advantages of emigration are many and the list is long. Here are the most important aspects that speak in favor of emigrating to Dubai.
Taxes
The most obvious advantage is definitely the Taxes in Dubaiespecially in direct comparison to Austria, Germany or other European countries with over 50% taxes. Dubai and the UAE offer an extremely attractive tax system for a wide range of people with different professional activities.
Private
In principle, there is no income tax at private level. This means that income from work/profession is not taxed and there are no social security contributions. Gross is therefore equal to net.
This also applies to passive income such as capital gains from shares, crypto, foreign exchange and more. Active income from trading these assets is also not taxed.
Furthermore, there are no taxes on income from rental income. Conventional rentals of owner-occupied properties are not classified as commercial and are therefore tax-free. The exception is short-term rentals through Airbnb and Booking.com, from 7 residential units. A company must be founded and a license obtained for this.
The company
Companies also pay no to very little tax in the UAE. Up to a turnover of AED 3,000,000, there is a tax exemption through the Small Business Relief. Beyond that, you have to pay 9% corporation tax, but still have an allowance of around USD 100,000.
This means that, depending on the size of the company, you pay no tax or a maximum of 9% corporate profits.
Security
Another important point in favor of emigrating to Dubai is the high level of security. Here, too, a comparison must be made with Europe, because in many countries, especially large cities such as London, Paris, Madrid and Berlin, security has been declining sharply for years.
In contrast to this Dubai is currently one of the safest cities in the world. From a global perspective, there are 5 Emirati cities in the top 10 safest cities in the world. The country prioritizes security and you can feel that as a resident. Minor crimes such as theft, burglary or mugging hardly ever occur.
In practice, you can walk alone at night without any problems, even as a woman, while wearing a luxury watch. Children are also particularly safe in Dubai and can travel to and from school on their own from a young age. This is particularly important for families.
The numerous, exaggerated, social media experiments in which valuables are deliberately placed in public places and left unattended for hours can be believed. Whether it's a watch, cash or an expensive handbag, if you forget something, you can be sure that you'll get it back.
Infrastructure
Dubai is one of the most modern cities in the world and the infrastructure is extremely good in many areas. The umbrella term infrastructure can be divided into sub-areas, so here is an overview of the most important points:
Hospitals Dubai has some of the most modern hospitals in the world and internationally trained staff with top doctors. From the American Hospital to the Saudi German Hospital and King's College Hospital, you will find internationally renowned clinics. In addition to traditional medical care, Dubai also offers numerous alternative medical treatment and prevention options. So-called regenerative medicine is offered by the DNA Clinic or AEON Clinic, for example.
Schools Another factor that attracts many parents and families to Dubai is the excellent schools. There is a large selection of TOP Schools in Dubaiare both German-speaking and international. From kindergarten to elementary school to secondary school, there is a comprehensive multilingual offer with internationally recognized qualifications.
Sports facilities A key issue for many expats and expatriates in terms of quality of life is sport. Here too, Dubai offers a comprehensive infrastructure with modern sports facilities of all kinds. The following sports in particular are strongly supported and offer many facilities:
- Gym
- Martial arts
- Padel
- Tennis
- Golf
- Yoga
- Pilates
Airport One of the strongest aspects of Dubai's infrastructure is DXB Airport. The home airport of the world-class airline Emirates flies directly to almost all destinations in the world. Whether Europe, Asia or America, you can get direct flights to almost all major cities, sometimes even several times a day.
VISA options
One point that is often taken for granted is the VISA options and processing speed. While other countries have extremely restrictive VISA procedures that exclude many people from the outset, almost anyone can get a VISA in Dubai.
Regardless of your origin, you only have to provide for your income through a job or self-employment (Company formation in Dubai) and you get a residence visa, which you can renew after two years. Not only are the requirements relatively simple and accessible for many, but also the implementation. Most VISA applications take from company formation, entry with medical test and biometrics to the Emirates ID only a few days. In most cases, the entire process is completed in less than 2 weeks.
In addition, you also have the opportunity to obtain a Golden VISA by purchasing real estate worth more than AED 2,000,000 or if you have a special profession such as a doctor or similar.
Banking system
An often underestimated factor when emigrating is the banking system. If you want to live in Dubai, you will of course need a bank account with both local and international currency support. Compared to many other emigration destinations such as Cyprus, where you cannot use the local banks, Dubai offers an excellent banking system.
Banks in Dubai are among the safest in the world and are also supported by the state. The local currency is pegged to the USD and is therefore very stable.
Opening a bank account in Dubai for expats is also comparatively easy, as long as you keep a few basic things in mind. There are also great commercial banks for entrepreneurs that support international businesses.
Disadvantages
No country or city is perfect. This includes Dubai and there are a few disadvantages that you should be aware of before you emigrate. Of course, these are also subjective and some people find them worse than others. Here is an overview of the biggest "con's" of Dubai.
Hot summer
As pleasantly warm and sunny as the winter and the long winter months are, it is unfortunately much hotter in Summer in Dubai. Temperatures reach over 40 degrees in the months of May to September and usually do not cool down below 30 degrees at night. This means that the summer is very warm and most of the time life takes place indoors.
For many, this is not a problem, as these months are great for vacations or longer trips. However, if you decide to stay in Dubai, you have to organize your life in such a way that most activities take place indoors.
Traffic
Dubai has become increasingly crowded in recent years due to its popularity with tourists on the one hand and expats on the other. This is not only reflected in the increased prices, but also in the traffic. During rush hours, the main traffic arteries are completely overcrowded and traffic jams form regularly.
If you don't have a typical 9-5 job, you can escape this somewhat, although traffic-wise, except for Sundays, Dubai is rarely quiet.
Prerequisites
Compared to other countries, there are very few requirements for emigrating to Dubai. All you have to do is bring enough money to sponsor your own VISA by setting up a company or buying real estate and then pass the medical test. As long as you do not have any sexually transmitted diseases or poliomyelitis, this is also not a problem.
Otherwise, there are no restrictions for countries or certain groups of people. Everyone who abides by the law is welcome. However, anyone who does not do so is quickly turned away or deported. Dubai does not tolerate troublemakers or criminals.
Procedure
The emigration process can be divided into several sections. The following is a brief step-by-step guide to emigrating to Dubai.
1. deregistration
The first step is to deregister properly in your country of origin. On the one hand, this means formal deregistration via the registration office, but also via the tax office and statutory health insurance.
In order for this to be recognized in the long term and for you to be removed from the old system, you usually (depending on your country of origin) have to give up your home, car and other memberships that may be the focus of your life interests.
In many countries, deregistration is usually done online. After deregistration, you usually have 14 days to leave the country. The official departure is also decisive.
2. health insurance
The next point is the conclusion of a new Health insurance. Ideally, you should have international health insurance so that you are insured against illness in several countries. Taking out insurance is also a legal requirement in Dubai, so you must be insured in Dubai at the latest.
However, there are also cheap local insurance policies that make sense if you are in Dubai most of the time anyway. Below are a few sample rates.
3. VISA Sponsor
Who live in Dubai If you want to work in Germany, you need a residence visa. This must be sponsored, either by a company or by buying a property (there are other options for specific professions, but for most this is not relevant). The former is the most popular, as most people need a company to do business anyway.
Setting up a company, buying real estate or other employment can already be completed remotely. You don't have to be on site for this.
4. VISA application
Once the company has been founded, the VISA application must be submitted. This multi-page form must then be submitted to the authorities or the Freezone. The processing time is usually 3 working days and you will then receive the first document, the EVISA.
5. entry / EVISA
Once you have received the EVISA after founding your company, you can enter the country with it. It is recommended that you print out this EVISA and show it at passport control. When entering the country, you can also obtain a temporary telephone number from Du, Etisalat or Virgin at the airport. This is not absolutely necessary, but can be practical.
6. medical test
The first step on site is the medical test. This takes place in one of the many facilities and consists of a lung X-ray and blood test. Polio and sexually transmitted diseases such as HIV are tested for here.
This usually takes no longer than 30 minutes, including the waiting time. The result is then sent to you by email within a few hours. This must then be submitted to the authorities so that the VISA process can be continued.
7. biometrics / ID application
Then you also fill in the Emirates ID application form. This is the key document that you need for all further steps.
This application is then taken to a typing center where the biometrics are taken. Only the fingerprints that will later be stored on the Emirates ID are taken here. This means that you can later use the Emirates ID also receive and sign documents and conclude contracts.
7th RV / Emirates ID
After a few days, you will receive the Residency VISA digitally for download. With this, you are now officially a resident of the UAE. In the past, you had to physically stick it in your passport, but now it is completely digitalized.
After a few days, you will also receive your Emirates ID by post to the address provided. With this you are now fully capable of living and doing business in the UAE. With the Emirates ID, you can open accounts, conclude rental contracts, rent cars and much more in the UAE.
8. account opening
This is followed by the Opening an account with a local bank in Dubai. There is a wide range of options, from local banks and fintechs to major international banks such as HSBC. Depending on your needs and requirements, you need to choose the right bank.
The process can generally be handled remotely.
9. real estate
Finally, of course, you also need a property to live in. This can be found via Propertyfinder.ae, Bayut.com or through a trusted real estate agent. Whether buying or renting, almost all real estate deals in Dubai usually go through a real estate agent. For rental contracts, 5% commission of the annual rent is taken and for purchases 2% of the total price.
Costs
The total costs of emigration are of course very individual. Decisive factors for the costs are sometimes:
- Number of VISA required
- Type and number of licenses
- Removal company (if necessary)
- Flight tickets
If you emigrate to Dubai on your own without large possessions and have an agency take care of everything, you will usually pay between 6,000 and 10,000.
Experience
In our experience, emigration to Dubai has increased significantly in recent years and for good reason. Those who inform themselves in advance and know the advantages and disadvantages, as well as getting a picture of the place, will emigrate successfully.
Emigration usually only fails if you are uninformed or if you think you can do everything yourself and do not need service providers for important decisions such as emigration, clarification of exit taxation and immigration on site in Dubai.
Summary
Emigrating to Dubai offers many advantages and has rightly been so popular for years. In addition to taxes and a high level of security, Dubai also offers extensive infrastructure and has been attracting more and more families in recent years. There are few requirements for emigration, the primary factor is money. If you have it, you can emigrate in just a few days.
