Tax or No tax ? Dubai or No Dubai?
UAE is a buzzing country located in the heart of the middle east. Its famous for its big buildings and tax free status. Lets talk a little more about the second aspect. We live in UAE, a country that doesn’t charge its citizen as well as expatriates any taxes or direct taxes if u say so.
Lets look into it a little more deeply. The whole expats can own property is a big Bullshit Facade. First of all its a lease of 99 years, Its expensive, no visa guarantee and high maintenance fees. So a normal expat cannot afford it, so they prefer to rent. Rents are usually high and serves as a indirect instrument of tax. It takes money out of your pocket and puts it in the hands of locals. The whole system is setup in such a way to benefit their own people. Isn’t this a lot like your income tax ?
Secondly, talk about government fees. Fees to do that and this in the Government sector is humongus. Getting a driving license can set you back around 5 grands. Starting a business you need well over 20-25 grands. Renewing a stupid license is around 200 AED. Visa fees are a couple of grands. This fees that fees. Its overpriced. I think the government fees alone would account for at least 2-5% of one’s annual income.
So if you add this number up you’ll soon notice that on a year on year basis you lose atleast around 15-20% of your income to these informal instrument of taxes. Ain’t I better off paying 30-40% taxes in the first world countries and also getting social and medical benefits ?
I have been in this country for all my life yet I am not a citizen. I’ll never be a citizen. I am strongly considering moving elsewhere. Somewhere, with good weather and good career opportunities. Somewhere where I’ll be treated equally. Lets see how that goes….