Emigrating to Dubai: 5 things you should consider when emigrating to Dubai

Emigrating to Dubai is not only associated with many advantages for companies. Many German private individuals also move to the emirate every year, which is partly due to Dubai's lucrative tax model. Moving to the country generally goes hand in hand with a high standard of living and improved financial opportunities. However, so that you can live carefree in the United Arab Emirates, you can think about a few formalities in advance that will be important for your move. You can find out what these are in the following list:

Residence permit and Emirates ID

In order to live in Dubai, Abu Dhabi or one of the other 7 emirates for a longer period of time, you need a residence visa. This can be obtained most easily in these four different ways:

• Through a real estate investment of at least 5 million dirhams: As soon as you have bought a property in the UAE, you can apply for a real estate investor visa for 5 years. This visa entitles you to reside in the country, but you do not have a work permit.
• By founding a company
• By investing over 10 million dirhams: This investment should be yours for at least 3 years, which gives you the opportunity to obtain a residence permit for up to 10 years.
• Through the Retirement Visa: If you are a pensioner, you can apply for a residence permit for 5 years. Your financial situation will then be determined at this interval and the permit extended accordingly.
  Please bear in mind that you must first apply for an Emirates ID (an identification card) from the Emirates Identity Authority in order to obtain a residence permit.
  We at EXTENT will be happy to assist you with our specialist expertise when applying for both a residence visa and an Emirates ID.

Taxes

‍TheUAE, and Dubai in particular, is known for its tax-free status. This is because Dubai largely waives taxes such as income tax, which is due to the city's economic boom. In addition, various types of income such as salaries, pensions or capital income from real estate are also tax-free. Only certain companies are subject to VAT of 5%. However, this tax regulation will change in June 2023, according to which companies that exceed the turnover threshold of AED 375,00 per year will pay a tax rate of 9%.
As a private individual, however, you are exempt from this tax law. This is because income from equity investments, real estate or private salaries is still not taxed.

Healthcare

‍Whetheryou want to emigrate alone or with your family. One of the most important factors to consider when emigrating is health and social insurance. Germany and the UAE do not have a social security agreement and the country (with the exception of Abu Dhabi) does not have a statutory insurance system. As an immigrant, it is therefore advisable to take out international health insurance before you move. Irrespective of this, however, many foreign employees now use the services of private hospitals as they do not have access to public facilities.

Residence

‍Ifyou want to emigrate to Dubai, sooner or later you will have to start looking for accommodation. However, there are some significant differences compared to Germany: it is unusual to rent an apartment several months in advance. Instead, you have to decide overnight whether you want to take an apartment or not. Because if life in Dubai is one thing, it is fast-paced and spontaneous.
You should also plan a certain budget for the monthly rent, as the luxurious and expensive buildings in the city cause rental prices to skyrocket. Sometimes you may also have to pay the rent for a year in advance. With this in mind, it is therefore not unwise to invest in a property for the long term and buy an apartment right away in order to save on living costs in the long term.

Opening a bank account

‍Whenemigrating, you not only have to deregister from the country of departure for police and tax purposes. All bank accounts must also be closed and reopened in Dubai or one of the seven United Arab Emirates. To do this, you will need a residence permit as well as a "No Objection Certificate", a salary confirmation from your employer. The rest of the process is very complex and requires professional expertise due to the high level of bureaucracy involved. Our experts at EXTENT can guarantee this.

Further advantages of moving to the UAE

Many private individuals and entrepreneurs have already been won over by the lifestyle and pleasant climate in Dubai. In addition, the major economic projects also speak in favor of relocating to the UAE, as they open up lucrative investment opportunities.

If you would like to emigrate with your family, the education system in Dubai will certainly be of interest to you. The education system is one of the largest sectors in the country and is invested in and expanded every year.

You will also quickly meet like-minded people who can help you settle into the country. There are currently around 12,000 German-speaking expats living in Dubai.

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