Finances and Cost of Living
In the UAE each Emirate has its own tax laws, as there is no federal tax legislation. The following taxes are not applicable in the UAE:
- Personal income tax
- Capital gains tax
- Value-added tax
- Withholding tax
- Corporate tax
Only oil, gas and petrochemical companies and branch office of foreign banks are required to pay taxes.
Nevertheless, there is a pension for employees who are UAE nationals (approx 5% of the salary) and authorities are studying a proposal to create a similar system for immigrants too.
There are other personal taxes such as :
- Food purchased in restaurants (5-10%)
- Hotel accommodation (10-15%)
- Alcohol (30 % and consumption is only permitted in designated areas such as bars attached to hotels)
In most Emirates there are property taxes payable by residential tenants at a rate of 5 % of the annual rent and for commercial tenants at 10 % of the annual rent,
To learn more about taxation in UAE download this pdf document.
COST OF LIVING
UAE is a very attractive country for foreigners because of its fee policy which has a positive impact on the cost of a number of items, including vehicles, electronic goods and local produce. For workers on an international wage the standard of living is very high.
Accommodation is the biggest cost an expatriate faces but it is decreasing.
You can use this page to tailor cost according to the number of bedrooms, type of house and location.
Find below a distribution of expenses using the Numbeo statistical model:
Refer to the Money Converter website for today’s exchange rate. The rough exchange rate is 0.15 GBP to 1 AED.