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What would make you want to live in Dubai even if there was income tax?

Let's face it, the way things are going these days (VAT, falling oil prices with no end in sight) it's a matter of when and not if. So, redditors of Dubai, what is it that would make you stay in Dubai even if there was, let's say, a nominal income tax (5-10%)? For example, would permanent residency be enough to sway your mind?

Dubai | 👁 1393 | Posted February 8, 2018 | Share on Facebook | Twitter | Google+

| Modified: February 8, 2018 | Author:

26 Comments

cyberkada 1 year ago

Singapore PR is exceeding easy to get, but it comes with NS obligations for any male children you might have. Income taxes are a joke there, with the government in the last 4 years paying up to S$1000 for all taxpayers, regardless of citizenship. Driving sucks though, due to something called COE. Instead of Salik, there is ERP. Most person happily live in HDBs with CPF deductions funding most of it. ( think government pension ) No restrictions on beer/alcohol except in Geylang and Little India, uncles happily drinking their Tiger beer at Hawker Centers at $6.40 a 650ml bottle... World class MRT and bus system that spans the entire island. Not like here, where non-drivers are pretty much forced to live close to the Metro. Singapore Botanical Gardens and Gardens-by-the-Bay and Sentosa are world-class. 45 minutes access to Batam, Indonesia using the ferry, and easy access to Johor Bahru, Malaysia across the causeway. World-class and world-famous Changi Airport for easy connections anywhere in Asia and Australia. But... difficult to actually work there due to local employment pressures. Would still be there if campus didnt close, of course, and transferred here.

ZloyKrys 1 year ago

For the same not-so-nominal 10% tax you'd get a much better deal in Singapore. Along with arguably better weather, world-class local schools and pathway to citizenship to whoever needs it (not easy but doable). As of me, I have zero interest in UAE PR, as long as I am better off financially living here, I stay, if not I move on. Taxes, etc is irrelevant, what matters is NET PAY

vanting_too_much 1 year ago

That would be me returning home if and when that happens. Also we will see no benefit from VAT or income Tax, as expats we get jack now and that will remain. At least at home you benefit from paying taxes with access to public services, including healthcare, schooling, fire, police. If you call the police here you pay, healthcare (PRIVATE) is now required by law and schooling is most certainly not free.

AdoniBaal 1 year ago

Permanent residency is very unlikely in any GCC country. There are more issues at play on this than economic reasons (demographics are a major concern for rulers). Income tax seems a bit unlikely as well - but we might see something like the Saudi fee on foreigners, where the fee is imposed on private companies and scales up with salaries - along with more increases on government services (a possible carbon tax on cars is in the rumor mill right now).

kulugo 1 year ago

honestly, as long as I am able to earn more and have a more comfortable lifestyle here than in my home country, I would stay. being here for 10 years (by Sept 2018), it will be difficult for me to start once again unless I put up my own business which I am not ready to risk (nor in the foreseeable future). as long as my employer doesn't kick me out, I'l stay put in UAE with my family.

against_hiveminds 1 year ago

Paying taxes for what? While all the expats get 'taxed' by increasing VAT fees and the like the locals all get raises to offset it. What are they really doing with that money? It's literally just to drain people dry. If that isn't a sign of a failing economy then nothing is.

against_hiveminds 1 year ago

Higher pay. Less bullshit and oversight from locals in my workplace who have zero experience in my trade yet get paid more to essentially sit around asking dumb questions. Higher pay.

JustAnotherExpat_dxb 1 year ago

Income tax (when implemented) would be on basic package or total package? Your housing is being taxed already i assume(Housing fee)? 10% on basic would be 'just ok' i guess.

BONGOmerchant 1 year ago

On reflection, it would probably make sense to restrict discussion of this topic to people that actually work for a living cause for everyone else its an academic question... ;)

p1lla1 1 year ago

Whether anyone will stay here will depend on your net income and visa status. If after tax and no benefits, I make less than what I would in my home country and/either am a visa slave, it would be logical to leave. PR alone is not enough. Healthcare and education are extremely expensive here. We don't have company insurance and get our own, so for us, PR + cheaper access to healthcare/ health insurance and education could be worthwhile.

wfmk 1 year ago

Full citizenship which can be passed to children, passport and pension after five years of continuous residence.

startuphameed 1 year ago

I am used to the idea of paying 36% income tax and an avg 20+% tax on everything in a country where I still had to pay toll on roads . Had to go pvt on healthcare etc ... But was happy that some small % is spent on some basic welfare for ppl who need that. Personally I wouldn't mind paying income tax here .

cyberkada 1 year ago

Yeah that will work well. Remember, Saudification failed miserably.

retroguy02 1 year ago

That's why I mentioned PR along with income tax - long-term stability could somewhat counterbalance the lower savings. 'Foreign worker tax' seems like an idea that would economically backfire (the product of another one of MBS' brainstorming sessions I'm guessing) - it would just encourage private sector employers to quit and move abroad rather than go through the process of paying extra for talented expats and instead hire local Saudis/Emiratis whose work ethic is renowned.

ballisticbanana999 1 year ago

I don't want PR here. I would leave instantly if there was income tax. I would have personally paid a hefty fee for the flexibilty and stability of PR. It'll become necessary as people leave, and that can only be a good thing. It'll at first just be rolled out to high-skilled people, but it will come.

BONGOmerchant 1 year ago

I dont think income tax is likely, as that would lead to conversations around more formalized representation and/or individual residency rights for non-citizens, and I doubt thats the desire of many Emirati subjects or rulers. I think its more likely there would be a Saudi-style tax on foreign workers thats charged to the employer. That would increase further Emirati participation in the workforce and start to wean the economy off cheap labour.

3alyElKufieh 1 year ago

PR for sure.

[deleted] 1 year ago

gummers 1 year ago

I don't want PR here. I would leave instantly if there was income tax. We can get a similar (maybe slightly lower) salary elsewhere, but its the lack income tax that makes this place financially worth it. And I actually like Dubai, but I'm sure I'd like other places too, places that would give me better bang for my income tax. You get nothing for your tax dollars here. No free healthcare, no free education, no english language libraries or widespread affordable community centers/programs. No unemployment insurance, no RRSPs or RESPs. No comprehensive recycling programs. No animal shelters. I could go on.

FraudMallu 1 year ago

Nope nope nope. I wouldnt stay if there is income tax. I would never take PR here.

WhereMyHoseAt 1 year ago

Agreed. Back in my day in high school we were paying 100,000 a year, but we had quality teachers and quality education. The same school today is charging triple the amount, all the good teachers have left, the infrastructure is crumbling and they've silently been stripped off their IB accredition without parents knowing. But they've got great PR.

JCdentonManderley 1 year ago

Home is where the people I love are and with regards to this place? I better make more money otherwise it just isn't worth it long term.

winahayat 1 year ago

even though there is VAT in Dubai, it is less compared to other countries. It is just 5%. Whereas in my hometown it is way too much.

yopla 1 year ago

Nope. 10% would tip the scale between a better life back home and here in the long run since I still need to save to retirement, there is no unemployment, education, social security. Tbh if I had kids I would have already left because the high school price and the low standard of education so permanent residency is of no interest to me.

DubaiExpatCouple 1 year ago

No it wouldn't be enough. Paying taxes I can do in my home country, while having freedom of speech. Dubai would have to become a proper democracy, before anything. As long as the people can't vote what happens with their tax dirhams, there's no benefit of paying taxes. Paying taxes for what? Funding more of the ridiculous projects of bigger, better and more ridiculous?

burksterdxb 1 year ago

Cheap fuel and low rents.


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