Dubai has no income tax, no capital gains tax, no inheritance tax and, since 2023, a 9 percent corporate tax. Rents are at Munich level, summers uninhabitable, and residence hangs on the visa. Whoever earns a lot saves the most here.
The short answer
Tax-free for individuals, expensive for housing, property with 6 to 8 percent yields. The most efficient country on the list for entrepreneurs and high earners, rarely sensible for pensioners.
milinia’s take
- No tax on salary, capital gains, rents, inheritance; 5 percent VAT, 9 percent corporate tax above 375,000 dirhams of profit.
- Residence: golden visa for ten years from 2 million dirhams of property investment (around €500,000), work visa via employer, freelance visas.
- Germany: the departure must be complete; without a double taxation treaty since 2021 every German flat counts.
- Housing: a one-bedroom flat in Dubai Marina €2,200, annual rent often paid in advance in one to four cheques.
Living and costs
Ten percent above Germany, driven by rents and school fees. A one-bedroom flat in Dubai Marina or Downtown costs €2,200, in Jumeirah Village €1,200, in Abu Dhabi €1,500. Rents are paid annually in advance or in a few cheques. Groceries slightly dearer, restaurants dear, petrol and taxis cheap, alcohol very dear, international schools €10,000 to €25,000 a year per child. Salaries for specialists sit 20 to 50 percent above Germany, without deductions.
Taxes
No income tax, no capital gains tax, no wealth tax, no inheritance tax. VAT 5 percent since 2018. Corporate tax 9 percent on profits above 375,000 dirhams since 2023, free zone companies with qualifying income still zero. The double taxation treaty with Germany expired in 2021; German income such as rents stays taxable in Germany, and whoever keeps a flat in Germany remains fully liable there. Exit tax on shareholdings applies immediately without EU deferral.
Property
Dubai €5,000 per square metre on average, Palm Jumeirah and Downtown €8,000 to €12,000, outer areas €2,500. Prices have risen more than 60 percent since 2021. Foreigners buy full ownership in freehold areas. Closing costs: 4 percent transfer fee, 2 percent agent, registration. No property tax, but service charges of 15 to 40 dirhams per square foot a year. Rental yields 6 to 8 percent gross, short-term lets allowed. Financing up to 50 percent for non-residents, up to 80 percent for residents, rates around 4.5 percent. From 2 million dirhams of investment the golden visa for ten years is available.
Gold, portfolio, bank
The Gold Souk in Deira is one of the largest gold markets in the world, investment gold without VAT, prices close to spot. Accounts for residents at local and international banks are straightforward, portfolios via international brokers. German brokers usually terminate on an Emirates residence.
What emigrants underestimate
Residence: without a visa no residence, and the visa hangs on an employer, a company or an investment. Health insurance is mandatory and private, dear in old age. Inheritance law follows sharia without a will; a will registered at the DIFC court protects non-Muslims. And the summer: from June to September 45 degrees are the rule.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Do I really pay no tax in Dubai as a German?
On income earned there, yes, if you are fully deregistered in Germany and keep no flat. German rents, pensions and gains on shareholdings stay taxable in Germany.
How do I get a visa?
Via an employer, your own free zone company from around €5,000 of annual costs, a property investment from 750,000 dirhams for two years or 2 million for the golden visa.
Is Dubai property a good investment?
Yields of 6 to 8 percent and no taxes argue for it, cycles with 30 percent declines as in 2009 and 2015 against. Only with equity and a long holding period.
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