The topic of „emigrating to Dubai“ is currently on everyone's lips. But why should you emigrate, what is the process like and what costs should I generally expect?
In this comprehensive guide, we answer all the important questions about emigrating to Dubai. Starting with the advantages and disadvantages, requirements and procedures, through to 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. Of course, these should always be weighed up individually. For some, certain aspects carry more weight than others. For example, someone emigrating with a family will have different requirements than someone emigrating alone at a young age.
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 Dubai. Especially 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 capital gains from shares, crypto, foreign exchange and more. Active income from trading these assets is also not taxed. Dividend distributions are also not taxed.
Furthermore, there are no taxes on income from rental income. Conventional letting of owner-occupied properties is not classified as commercial and is 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 so-called Small Business Relief. Beyond this, 9% corporation tax must be paid, but there is still an allowance of around USD 100,000. Salary, however, remains tax-free and can reduce the potential taxable profit.
This means that, depending on the size of the company, you pay no tax or a maximum of 9% on 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 focuses on 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 a crucial point, especially 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 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 very good 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 Dubai, which are both German-language and international or multilingual. From kindergarten to elementary school to secondary school, you can choose from a wide range of multilingual courses with internationally recognized qualifications. As more and more Families emigrating to Dubaithis is a decisive factor.
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
Restaurants The world's best restaurants have also been located in Dubai for many years. These include excellent restaurants such as ZUMA, Nammos, Gaia, Robertos, Nobu and other hot spots. Those who love high-quality food and high-end dining will definitely get their money's worth here. There are also numerous cafés in Dubai for those who love beans and brunch.
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. Abu Dhabi Airport is also only 1.5 hours away from Dubai and offers further connections to the whole world.
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 setting up a company, through entry with a 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 option of acquiring a Golden VISA by purchasing real estate (e.g Buying an apartment in Dubai) with a value of over 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. Dubai is one of them and there are few Disadvantages in Dubaithat 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 winter and the transitional 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 rarely gets 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.
But you also have to be able to afford to continue living, because the Cost of living in Dubai are definitely higher than in many European cities. If you can't afford it, you definitely shouldn't emigrate. If you earn less than €5,000 per month, you probably won't be happy in this city. Ideally, you should earn €6,000 - €7,000 upwards, as you have to pay for everything privately. However, if you earn well, you will save a lot of money in Dubai, as there are no taxes on income.
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) also 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. Taking out insurance is also a legal requirement in Dubai. You must be insured on site at the latest. There are basically two options to choose from: international health insurance or local health insurance.
If you travel a lot and are not only in Dubai all year round, you should think about international health insurance. This not only protects you in the UAE, but also in other parts of the world and covers costs in the event of illness (depending on the tariff/package). Popular providers include Passport Card, April and Foyer.
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.
We clearly recommend the BEST package offered by this insurance company, as the hospitals mentioned are among the best in Dubai and you shouldn't save money here. What's more, it's the equivalent of just €100 per month.
3. VISA Sponsor
Who live in Dubai would like to stay, you need a residence visa. This must be sponsored. There are several options here, with most expats opting for the following three: Job, starting a business or buying real estate. There are other options for specific professions, but these are not relevant for most people. The second option is the most popular, as most people need a company to conduct business anyway. However, many people only set up a company in order to obtain a residence visa.
Setting up a company, buying real estate or other employment can already be done remotely. You don't have to be on site for this. However, you should definitely seek advice in advance, as there are many small details that need to be considered, especially when it comes to the Founding a company in Dubai goes.
4. VISA application
This step varies depending on the type of residence visa you choose. For example, after setting up a company, the VISA application must be submitted via employment. This multi-page form must then be submitted to the authorities or the free zone. The processing time is usually 3 working days and then you receive the first document, the provisional EVISA, short for Employment VISA.
This document is valid for two months and allows you to enter the UAE during this time.
5. entry / EVISA
Once you have received the EVISA after setting up your company, you can enter the country with it within 60 days. 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 come in handy later. You will also need a local number to open a bank account. More on this later.
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. Here you are tested for polio and sexually transmitted diseases such as HIV. It is therefore relatively safe for all those coming from Europe.
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, it is important to choose the right bank. Popular banks among expats include Mashreq, ENBD and Wio, the latter of which is a modern fintech and can be opened relatively easily if you know how.
In general, you should be well prepared when opening an account in order to avoid a rejection.
Depending on the bank, the process can be handled remotely in some cases.
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 plus an additional 4% DLD fee.
This point should definitely not be underestimated. Ideally, you should definitely spend the first few days and weeks in an Airbnb and change the area from time to time. This allows you to get to know the city better and what you ultimately like. The Most popular areas among expats in Dubai are among others:
- Downtown
- Business Bay
- Creek Harbor
- Dubai Hills
- Emaar Beachfront
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 many possessions and have an agency take care of everything, you will usually pay between €6,000 and €10,000. Here, however, you get a full service package that covers and optimally organizes everything.
Error - Please note
When emigrating to Dubai, there are always mistakes that can cause the emigration to fail and result in expats leaving Dubai or the UAE. The following is an overview of the biggest mistakes that can occur when emigrating to Dubai.
Removal tax
The exit tax is a major issue, especially if you hold shares in companies or hidden reserves. In Austria, this also includes cryptocurrencies, shares and other securities. It is therefore essential to plan and pay attention to exit tax to avoid unnecessarily high payments or penalties in the event of non-compliance. To this end, it is essential to consolidate a local tax advisor from the country of origin.
High cost of living
Even if you don't have to pay taxes or social security contributions in Dubai, the fact is that the Cost of living are generally much higher than in Central Europe. Of course, this always depends on the individual's own standard of living, but as a single person you generally have to reckon with upwards of €5,000 if you want to live reasonably. Many people who are new to Dubai are tempted to share the luxury of others and also share it online. Here you run the risk of living beyond your means and ultimately not saving any money unless you have control over your finances.
Alcohol or drug consumption
The laws regarding alcohol consumption are very relaxed in many European countries, especially Germany and Austria. However, you should be aware that there is no tolerance for drinking and driving in the UAE, and certainly not for drugs. Although the penalties have been reduced, you can still expect severe fines or even imprisonment if you disregard certain laws. Basically Alcohol is in Dubai allowed in private or in certain places, but not in public.
Drugs such as marijuana, cocaine and the like are severely punished.
Disrespect
Showing respect to others is not only a matter of virtue, but also a legal obligation. Anyone who insults or abuses others and cannot control themselves may well be reported to the police and fined. Even simple terms sent via WhatsApp or email are sufficient. In general, politeness and respect for other people and cultures are required by law and the penalties are severe.
Expectations
One of the decisive factors when emigrating to Dubai is the mentality and expectations you bring with you. Many people, especially Germans, take their old attitudes with them to Dubai and expect exactly the same here as in their home country. This applies not only to the laws, but also to simple everyday things such as punctuality or accuracy. Whether these qualities are good or bad is something everyone has to decide for themselves. The fact is that certain things simply work differently in the Arab world, including Dubai, and sometimes you have to be patient or adjust your expectations. Some things go faster, but some things go slower.
Experience
In our experience, emigration to Dubai has increased significantly in recent years and for good reason. Those who inform themselves in advance, know the advantages and disadvantages and get an idea 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 a service provider for important decisions such as emigration, clarification of exit taxation and immigration on site in Dubai.
Frequently asked questions
An overview of the most frequently asked questions when it comes to emigrating to Dubai.
How much money do you need to emigrate to Dubai?
Of course, this depends very much on the standard of living you want to lead. There are guest workers who live on around €1,500. As a rule, if you want to lead the Central European standard of living, you should earn at least €5,000 as a single person in Dubai. Ideally, for more leeway, budget for hobbies and luxury, you should be earning €7,000 per month.
Which professions are in demand in Dubai?
In general, European specialists with a good education are particularly sought after. Above all, areas such as
- IT
- Finance
- Engineering
- Building industry
However, you should have a solid education and professional experience. Career changers will find it very difficult.
What do I need to consider when emigrating?
There are several points that you should definitely consider when planning to emigrate to Dubai. Here is an overview of the most important ones:
- The most important thing is to have a sufficient budget or income. In the UAE, all services have to be paid for privately, i.e. life is more expensive than in Central Europe. However, those who earn well can still benefit greatly, as there are no taxes at a private level.
- You should also be aware of the exit tax, which is a trap for many people and can have legal consequences if you do not plan proactively.
- This also includes the clean deregistration at the tax office, registration office and the termination of contracts and insurance policies.
- In addition, you should have a professional contact person on site for visa applications, company formation, real estate, insurance, driver's license and similar matters to ensure a smooth immigration process with the Emirati authorities.
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 an 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.
