October 4, 2026

Why Do So Many People Move to Dubai? Reasons and Reality

Dubai has been growing through immigration for years. More than eighty percent of the emirate's population are foreigners, and the share continues to rise. The reasons are quickly listed; more interesting is which of them hold up in practice and which do not.

The short answer

No income tax on salaries and private investment income
Very low crime and a strong sense of safety
Growth in technology, financial services, trade and tourism
Digital administration and short official procedures
Several visa routes for entrepreneurs, skilled professionals and location-independent workers
Warm climate all year round, with a summer that is hard to bear

The financial core

The most common motive is the tax burden. At the level of the private individual, the Emirates levy no income tax, no wealth tax and no inheritance tax. A VAT of 5% has applied since 2018, and since June 2023 a corporate tax of 9% on business profits above AED 375,000.

If you earn a high gross salary in Germany, you see the difference immediately on your bank statement. Two points put it into perspective, however:

The tax exemption only applies once you actually relocate your centre of life; a visa alone is not enough
There has been no double tax treaty between Germany and the UAE since the end of 2021, which makes planning more demanding

For Austria and Switzerland, the situation is different; both countries have a treaty with the Emirates, with different methods.

Work and entrepreneurship

Demand is highest in IT, financial technology, construction, healthcare, tourism, aviation and marketing. The free zones are organised by sector: Dubai Internet City for technology, Dubai Media City for media, Dubai Silicon Oasis for innovation, the DIFC Innovation Hub for financial technology.

What makes the location attractive for founders: one hundred percent foreign ownership in the free zones, English-language contracts, manageable bureaucracy and a licence that is ready within a few days.

What is rarely mentioned: in many sectors, long working hours and high performance pressure are normal. Protection against dismissal is considerably weaker than in Germany, and the right of residence depends on the employment relationship.

Everyday life behind the pictures

Dubai is a working city, not a permanent backdrop. Everyday life consists of the school run, the weekly shop and traffic jams on Sheikh Zayed Road, not beach clubs.

Expectation	Reality
Sunshine all year round	May to September above 45 degrees; everyday life moves indoors
Living tax-free	Rent, school and insurance noticeably eat into the advantage
Everything happens fast	Licence in days, bank account in weeks, school place in months
International community	True, with the risk of living in an expat bubble

Housing and costs

The choice of neighbourhood determines your budget and daily rhythm more than anything else.

Downtown, Dubai Marina, JBR: urban, apartments, high rents, short distances to nightlife
Arabian Ranches, Dubai Hills, Damac Hills, Al Barari: villas, green spaces, quieter; the typical family choice
Palm Jumeirah: luxury segment with prices of its own
Jumeirah Village Circle, Dubai Silicon Oasis, Motor City: solid quality at more moderate prices

Property prices have risen considerably since 2021. In prime locations, two-room apartments cost several thousand euros a month in rent; further out, the level drops considerably. Payment in advance is common, often annually or in a few cheques, which ties up liquidity.

As a guide, we give families a budget of around EUR 5,000 to 10,000 a month, depending on location, school and lifestyle. Foreigners can buy property outright in freehold zones; gross rental yields are above European levels.

School and family

Depending on curriculum and year group, international schools cost between a few thousand and well over thirty thousand euros a year. All schools are supervised by the KHDA and are assessed regularly. Arabic is a compulsory subject.

A detail that is often wrong online: since the change at the beginning of 2022, the school and working week runs from Monday to Friday, with a shortened Friday. The former Sunday to Thursday week no longer applies.

Culture and rules

By regional standards, Dubai is liberal, but it is shaped by Islam. English is the language of business and everyday life; the official language remains Arabic.

Modest clothing in malls and public buildings
Alcohol only in licensed venues or in private; zero tolerance when driving
Restraint with public displays of affection
Zero tolerance for narcotics
Restricted freedom of expression; public criticism of the government or religion is not an option
During Ramadan, special daytime rules apply to everyone

Mosques, churches, temples and synagogues exist side by side. If you take an interest in the local culture, you will settle in noticeably more easily.

The visa routes

Employment visa with the employer as sponsor: the most common route for employees
Investor or partner visa through your own company
Golden Visa valid for five or ten years, among others for investors from AED 2 million
Remote work visa for location-independent professionals
Freelancer permit for self-employed people without a classic employer
Retirement visa with proof of property or income

Every route requires a medical check, private health insurance and the Emirates ID.

Who it is worth it for, and who not

It suits qualified professionals in sought-after sectors, entrepreneurs with international business, location-independent workers and families who want an international education path.

It suits less those with a tight budget, professions without local demand and people for whom political participation and unrestricted freedom of expression are important. The distance from family in Europe and the summer heat are also regularly underestimated.

How we see it

From our client work: the clients for whom the move works out well have two things in common. They had been there several times beforehand, including in July or August, not just in February. And they did the maths before moving instead of being dazzled by the absence of tax.

The most common mistake is the half solution: company here, residence there. It combines the costs of both systems and the advantages of neither. If you take the step, you should take it fully, or not at all.

Our advice: before deciding, plan two longer stays, one in summer and one in winter, each lasting two to four weeks. And have the conversation with your tax adviser in your home country before you apply for a licence, not afterwards.