What income/salary do you need to live in Dubai?

The cost of living in Dubai depends on your lifestyle. If you regularly have dinner out and engage in luxury shopping (all tax-free!), your costs will be higher. However, with a well-managed budget, the overall cost of living for expats in Dubai might be lower than you expect.

The table below compares the cost of living in Dubai and London, showing that, on average, living in Dubai tends to be less expensive than in London:

Whether you plan to rent or invest in property in Dubai, your accommodation will likely be one of your highest expenses.

The table below compares the price per m² of property per month in London vs. Dubai:

As seen, rental prices in Dubai are typically cheaper than in London, meaning your salary can stretch much further in Dubai.

While Dubai doesn’t tax property, there are some extra costs to be aware of:

• Tenants – the municipality housing fee is 5% of the annual rent, billed monthly through utility providers. Additionally, when planning your budget, be aware that annual rental agreements typically require a security deposit and payments made through post-dated checks. Many landlords prefer receiving payments in two to four installments per year.
• Owners – property buyers pay a one-time land registration fee of 4% of the property value. Additionally, owners in freehold communities are responsible for annual service charges, which vary depending on the property and its location.

Many expats move to Dubai to take advantage of the tax-free salaries and career advancement opportunities. This makes Dubai attractive for professionals who want to maximise their take-home pay as well and display a position working in a major international environment on their CV.

Top-paying sectors in Dubai include banking, engineering, IT, and law. Some high-paying positions in Dubai for foreigners include roles such as bank manager, IT manager, restaurant manager, orthodontist, cardiologist, and marketing manager. If you work in a recognized profession, now is a good time to explore the job market in Dubai. The average expat salary in Dubai is around £2781 compared to £3,321 in London. Although London’s average salary is slightly higher, it’s important to note that salaries in Dubai are tax-free, which makes living here financially attractive.

In addition to tax-free salaries, many employers provide a Dubai expat salary package that includes attractive benefits, such as:

• housing allowances – employers often cover part or all of the cost of accommodation,
• education allowances -Companies may contribute to school fees for expatriates with children,
• healthcare insurance – medical insurance is often included as part of  frequently included in employment packages.

Retirement in Dubai is increasingly popular due to the city’s modern infrastructure, vibrant culture and tax-free environment. However, unlike many countries, Dubai does not offer a state pension system for expatriates, making financial planning essential for retirees.

Dubai also offers a retirement visa for expatriates aged 55 and above. The visa is valid for 5 years and can be renewed if the eligibility criteria do not change. If you are considering retiring to Dubai, you should take into account your income in respect of the following financial requirements for the retirement visa:

• a monthly income of AED 15,000 from pensions or investments,
• ownership of property in Dubai worth at least AED 1 million,
• hold savings of AED 1 million in a local bank account.

Living in Dubai can be a life-changing experience, but it’s important to have a steady income to cover your expenses. However, compared to London, Dubai offers a more affordable lifestyle, and the average salary for expats can provide a very comfortable standard of living.

When planning to move to Dubai,  it’s also important to consider your long-term goals. Living in a tax-free environment for a time can help you build your savings, thanks to the advantage of a tax-free salary, while also opening up opportunities for personal and professional growth in the future.

3 key points to remember 

• Dubai offers a tax-free environment, allowing your money to stretch further.
• The average cost of living in Dubai is cheaper than London.
• Additionally, the city provides a wide range of property options, from luxurious city apartments to spacious family villas in expatriate-friendly neighborhoods.