How does Dubai compare on cost of living?

Frequently asked questions

Is Dubai more expensive to live in than London?

It depends on the category. Housing in Dubai can be cheaper than prime London — a 4-bedroom villa in Arabian Ranches or Jumeirah Park is typically 40–60% less than an equivalent property in Chelsea or Kensington. However, international schooling in Dubai (AED 60,000–120,000/year per child) is comparable to top London private schools. The biggest difference is typically income and capital gains tax — a high earner relocating from the UK can save far more in tax than any cost-of-living difference.

Is there property tax in Dubai?

No. Dubai has no annual property tax (equivalent to UK council tax or French taxe foncière). There is a one-time 4% Dubai Land Department (DLD) transfer fee payable on purchase, and a 5% service charge on rented properties — but no recurring ownership tax. This makes the total cost of ownership significantly lower than in most European cities.

How much does international schooling cost in Dubai?

International school fees in Dubai range from approximately AED 30,000/year for budget schools to AED 120,000+/year for premium British curriculum schools such as Jumeirah English Speaking School (JESS), Dubai College, or Repton. The KHDA (Knowledge and Human Development Authority) publishes approved fee schedules annually. For a family with two school-age children, schooling is typically the largest fixed cost after housing.

Can I buy property in Dubai as a foreigner?

Yes. Foreigners can purchase freehold property in approximately 60 designated freehold zones across Dubai, including Dubai Marina, Downtown Dubai, Palm Jumeirah, Arabian Ranches, and Jumeirah Village Circle. There are no restrictions based on nationality. Non-residents can also purchase property and apply for a property investor residence visa if the purchase value meets the qualifying threshold.

Is VAT charged in the UAE?

Yes. The UAE introduced VAT at 5% in January 2018 — one of the lowest rates in the world. Most goods and services are subject to 5% VAT. Residential property rentals, bare land, and local passenger transport are zero-rated or exempt. Healthcare and education at licensed institutions are also zero-rated. There is no personal income tax, capital gains tax, or inheritance tax.