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The United Arab Emirates (UAE) has become known all over the world in recent years through Dubai Tax Policy reforms. In particular, a populous city like Dubai has become a tax haven for foreigners.
Tax-Free Facilities
The UAE is ranked as a top country for providing tax-free facilities to foreigners this year. This is evident from a recent survey by an expatriate insurance company. Specifically, Dubai as a global financial hub is now becoming increasingly attractive to foreigners. William Russell has published this list. He considered various sectors, including air travel, house rent, and service bills. This highlights the benefits of the Dubai Tax Policy.
Salary and Spending
The average monthly net salary in the UAE is 3,015Dh and the average spending is 3,590Dh. Consequently, the UAE has surpassed all countries that offer zero tax benefits in both cases. Historically, foreigner’s interest in Dubai is quite old, largely due to the favorable Dubai Tax Policy.
Safe Haven for Capital
The phrase “safe haven” has come to be known in recent years. Notably, people say a huge amount of capital is being transferred openly. Moreover, it is also being moved secretly from different countries to this region. Various sectors of the region are flourishing in the reinvestment. This includes financial, real estate, and housing, thanks to the Dubai Tax Policy.
Real Estate and Infrastructure
PNC Menon, chairman of Sobha Group, one of the UAE’s largest real estate companies, echoes the same sentiment. “UAE cities, especially Dubai and Abu Dhabi, are attracting investors and expatriates very much.
Furthermore, not only is it tax-free, it has excellent infrastructure, wonderful architecture, modern lifestyle, world-class residential areas, resorts, and beaches. This combination of factors, combined with affordable living costs, enhances city appeal. Additionally, the ease of doing business with security and stability is a major attraction. Altogether, all of these elements contribute to the overwhelming attractiveness of UAE cities, driven by the Dubai Tax Policy.
Comparison with Other Countries
Oman is the most tax-free country for foreigners in William Russell’s list of 12 countries. Specifically, the relocation score got 7.92 out of 10. Moreover, the place is the lowest country in terms of monthly cost of living. It is also noteworthy that it is the third cheapest in terms of service bill.
Kuwait and Bahrain are in second and third place respectively. Following these, the UAE is followed by Brunei Darussalam, Maldives, Qatar, Bahamas, Monaco, Cayman Islands, Bermuda, and Vanuatu. Interestingly, most of the countries on this list have been repeatedly discussed. In recent years, they have been identified as destinations for money laundering. This often occurs under the guise of offshore companies worldwide.
Report Findings
William Russell’s report considers various factors including flight costs, fares, and service costs. As a result, the United Arab Emirates, a country with a population of 10 million, scored 5.84 out of 10 to secure fourth place. For instance, expatriates have to spend about $154 here for a London-Abu Dhabi one-way economy ticket. Similarly, the New York route costs $530.
Cost of Living
According to the report, renting an apartment in the UAE costs about $1,016 per month. Additionally, expatriates pay an average service bill of $169 per month and their monthly expenses are about $959. On the other hand, Oman is the cheapest country to buy or rent an apartment.
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