Moving to Dubai: 5 Things You Should Consider When Emigrating to Dubai

Moving to Dubai offers numerous advantages not only for companies. Every year, many German private individuals are also drawn to the Emirate, which is due in part to Dubai's attractive tax model. In general, relocating to the country comes with a high standard of living and improved financial opportunities. However, so that you can live in the United Arab Emirates free of worries, you can start thinking in advance about a number of formalities that will be relevant to your move. You will learn which ones 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 over a longer period of time, you need a residence permit (Residence Visa). This can most easily be obtained in these four different ways:

• Through a real estate investment of at least 5 million Dirham: As soon as you have purchased a property in the UAE, you can apply for a real estate investor visa for 5 years. With this visa you are entitled to residence, but you do not have a work permit.

• Through the establishment of a company

• Through an investment of more than 10 million Dirham: This investment should belong to you for at least 3 years, which opens up the possibility of obtaining 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. In this cycle your financial situation is then assessed and the permit is extended accordingly.
  In any case, bear in mind that in order to obtain a residence permit, you must first apply for an Emirates ID (an identification card) at the "Emirates Identity Authority".
  Both when applying for a Residence Visa and for the Emirates ID, we at Danho & Partner are happy to assist you with our professional expertise.

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Taxes

The UAE, but above all Dubai, is known for its tax-free status. This is because Dubai largely forgoes tax levies such as income tax, which can be attributed to the city's economic boom. In addition, various types of income, such as from salary, pension or capital gains from real estate, are likewise tax-free. Only a value-added tax of 5 % is payable for certain companies. As a general rule, taxable income up to AED 375,000 is subject to a 0% Corporate Tax rate, while the portion exceeding AED 375,000 is taxed at 9%. As a private individual, however, you are exempt from this tax law. This is because income from capital investments, real estate or the salaries of private individuals continues to be untaxed.

Healthcare

‍Whether you want to emigrate alone or with your family. One of the probably most important factors to consider when emigrating is health and social insurance. This is because Germany and the UAE have no social security agreement, and the country (apart from Abu Dhabi) also has no statutory insurance system. As an immigrant, it is therefore advisable to take out international health insurance even before the move. Independently of this, the services of private hospitals are now used by many foreign employees, as they do not have access to public institutions.

Residence

If you want to emigrate to Dubai, sooner or later you will have to set out on a search for accommodation. However, there are some significant differences here compared to Germany: For instance, it is rather unusual to rent an apartment several months in advance. Rather, you have to decide overnight whether or not to take an apartment. Because if life in Dubai is one thing, then it is fast-paced and spontaneous. In addition, you should have planned a certain budget for the monthly rent, because the luxurious and costly structures of the city cause rental prices to skyrocket. Sometimes it can 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 a property over the long term and to buy an apartment right away, in order to be able to save permanently on the cost of living.

Opening a Bank Account

When emigrating, you must not only deregister from the country you are leaving with the police and tax authorities. All banking relationships must also be closed and newly opened in Dubai or in one of the seven United Arab Emirates. For this you need a residence permit as well as a "No Objection Certificate", a salary confirmation from your employer. The further process is very complex and, due to the high bureaucratic effort, requires professional competence. Our experts at Danho & Partner can guarantee this.

Further Advantages of a Move to the UAE

Many private individuals as well as entrepreneurs have already been won over by the way of life and the pleasant climate in Dubai. Alongside this, the major economic projects also speak in favor of moving 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. This is because the school system is one of the largest sectors of the country, in which investment and expansion take place every year.

In addition, you will quickly come across like-minded people who can assist you during the settling-in phase in the country. Because currently around 12,000 German-speaking expatriates live in Dubai.

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