On the rise: Dubai’s economy is growing and the number of Britons emigrating there is increasing Photo: Signature Residences Worldwide
Is Dubai the new Spain? Britons are abandoning their place in the Spanish sun for countries with better work opportunities and more stable house prices – and the Middle East is one of several areas attracting growing numbers of emigrants.
While Dubai may not be a popular retirement option given the high cost of living, young professionals are moving there in droves.
NatWest’s latest International Personal Banking Quality of Life Report shows Dubai is now number three in the table of nations offering the best quality of life for British expats, behind Australia and Canada. It has risen from the 10th spot in 2010.
By contrast Spain fell from seventh to ninth place over the same period, and in 2013 almost 90,000 British expats left Spain, mostly to return home.
Despite disillusionment, more than 150,000 people are still emigrating each year, with cheaper travel encouraging them farther abroad. But what are the financial considerations in the more popular destinations?
Dubai
The main draw for expats in Dubai is the zero rate of income tax. Dubai’s growing construction, tourism and financial services sectors, as well as its established oil industry, are attracting workers.
While earnings are tax-free the cost of living is high, making it less appealing to retirees who want to keep their outgoings in check.
It could be a good place to buy property, however. House prices suffered during the financial crisis, but are now rising sharply. Prices rose 24pc in 2013, according to HSBC Global Research, which claimed Dubai was still relatively inexpensive on an international basis. It expects prices will rise by 10pc to 15pc this year.
If you buy property while living abroad, you may have to pay capital gains tax on it in the UK when you sell it. Iain McCluskey, a director at PwC, said this applied if the property did not qualify as your main residence and you had spent less than five full tax years outside the UK.
• Tax: No income tax.
• Housing: Average two-bedroom villa in Jumeirah Village Triangle costs £548,000.
• Health care: Average medical insurance cover for a young professional starts at about £725 a year.
• Getting in: You will need a work permit, residence visa and an Emirates ID card. Your employer should apply for the visas for you.
Dubai
The main draw for expats in Dubai is the zero rate of income tax. Dubai’s growing construction, tourism and financial services sectors, as well as its established oil industry, are attracting workers.
While earnings are tax-free the cost of living is high, making it less appealing to retirees who want to keep their outgoings in check.
It could be a good place to buy property, however. House prices suffered during the financial crisis, but are now rising sharply. Prices rose 24pc in 2013, according to HSBC Global Research, which claimed Dubai was still relatively inexpensive on an international basis. It expects prices will rise by 10pc to 15pc this year.
If you buy property while living abroad, you may have to pay capital gains tax on it in the UK when you sell it. Iain McCluskey, a director at PwC, said this applied if the property did not qualify as your main residence and you had spent less than five full tax years outside the UK.
• Tax: No income tax.
• Housing: Average two-bedroom villa in Jumeirah Village Triangle costs £548,000.
• Health care: Average medical insurance cover for a young professional starts at about £725 a year.
• Getting in: You will need a work permit, residence visa and an Emirates ID card. Your employer should apply for the visas for you.
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