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SAVINGS ON TAXES FOR EXPATRIATES IN DUBAI

Friday, 24 Oct 2008

A major reason that so many are drawn to purchase property in Dubai and make the emirate their permanent place of residence is that the region doesn’t ask residents to pay tax on any personal income that’s earned. Expatriates living in Dubai can take full advantage of the tax laws, because anyone able to legally not pay taxes and thereby save money legitimately will certainly be able to increase their financial gain, especially if the would-be tax money is invested correctly.

At this point in time, there is no VAT levied by Dubai authorities either, making the emirate an even more appealing place for expatriates to settle down in and purchase Dubai property for residential use, although it’s said that VAT will in fact be introduced into the United Arab Emirates as a whole at some point in the foreseeable future.

There are very few tax levies implemented in Dubai, and the few that you are likely to see include a mere 5 percent “council” tax for rented accommodation in Dubai, a low 10 percent tax on food and beverages purchase at hotels, a whopping 30 percent tax on alcohol, and 10 percent “council” tax that all those living in property in Dubai, regardless of whether they own or are renting the property, have to pay.

For expatriates wishing to purchase property in Dubai, there are many ways to claim the full benefit of not having to pay tax on personal income. Dubai’s Central Bank will be able to assist with sound financial advice to anyone unsure of the best route to go, and independent advisors of finance are also available to those wishing to make use of their services. With the right choices, expatriates will be able to live reasonably comfortably in Dubai and still be able to take home a nice amount of saved cash when they decide to return to their country of origin.