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

Immigrating to Dubai offers many benefits not only for companies. Many German private individuals also move to the Emirate every year, which is due, among other things, to Dubai's lucrative tax model. In general, moving to the country is associated 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 some formalities in advance that will be important when you move. You can find out what they are in the following list:

Residence permit and Emirates ID

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

• Through a real estate investment of at least 5 million dirhams: Once you have bought a property in the UAE, a real estate investor can apply for visas for 5 years. With this visa, you have a right of residence, but you do not have a work permit.
• By setting up a company
• With an investment of over 10 million dirhams: This investment should be yours for at least 3 years, which gives you the opportunity to obtain a residence permit of 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 rate and the approval will be extended accordingly.
  In any case, keep in mind that in order to obtain a residence permit, you must first apply for an Emirates ID (an identification card) from the Emirates Identity Authority.
  When applying for a residence visa as well as for an Emirates ID, we at EXTENT are happy to provide you with our specialist expertise.

taxes

‍The UAE, but especially Dubai, is known for its tax exemption. Because in Dubai, tax contributions such as income tax are largely waived, which is due to the city's economic boom. In addition, we are also tax-exempt from various types of income, such as salary, pension or capital income from real estate. Only a value added tax of 5% must be paid for certain companies. However, this tax regime will change as of June 2023, according to which companies that exceed the annual turnover threshold of AED 375.00 pay a tax rate of 9%.
However, as a private person, you are exempted from this tax law. This is because income from private equity investments, real estate or salaries of private individuals is still not taxed.

healthcare

‍Regardless of whether you want to emigrate alone or with your family. Health and social insurance are probably one of the most important factors to consider when emigrating. This is because Germany and the UAE do not have a social security agreement and the country (except Abu Dhabi) also does not have a statutory insurance system. As an immigrant, it is therefore advisable to take out international health insurance before moving. Irrespective of this, however, many foreign workers are now using the services of private hospitals because they have no access to public facilities.

residency

‍If you want to emigrate to Dubai, you'll have to start looking for accommodation sooner or later. However, there are some significant differences to Germany here: It is rather unusual to rent an apartment a few months in advance. Instead, you have to decide overnight whether you want to take up an apartment or not. Because if life in Dubai is one thing, it's fast-paced and spontaneous.
You should also have a certain budget for the monthly rent, as the luxurious and expensive buildings in the city make rental prices skyrocket. Sometimes it may also happen that you have to pay the rent for a year in advance. Against this background, it is therefore not unwise to invest in real estate over the long term and buy an apartment right away in order to be able to save on living costs permanently.

Opening a bank account

‍When emigrating, you not only have to deregister from the country of departure for police and tax purposes. All bank details must also be closed and reopened in Dubai or in one of the seven United Arab Emirates. To do this, you 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 specialist expertise due to the high level of bureaucratic effort. Our experts from EXTENT can guarantee this.

More benefits of moving to the UAE

Many private individuals as well as entrepreneurs have already been impressed by the way of life and the pleasant climate in Dubai. In addition, the major economic projects also speak in favour of moving to the UAE, as they open up lucrative investment opportunities.

If you want to emigrate with your family, the education system in Dubai will definitely be of interest to you. This is because the education system is one of the largest sectors in the country, in which investments and expansion are made every year.

In addition, you will quickly come across like-minded people who can help you with the integration phase in the country. Because there are currently around 12,000 German-speaking emigrants living in Dubai.

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