Year-round sunshine, pool days and zero taxes: How to move to Dubai and work remotely for a year

(CNN) — As world enterprise and journey hubs stay largely closed off to the lots, Dubai is making entry simpler than ever for worldwide guests.

The glitzy metropolis, in addition to the United Arab Emirates as a entire, has for years been opening up its once-strict residency and vacationer visa guidelines, however has accelerated its modifications within the face of the coronavirus pandemic.

Last month, the nation introduced a UAE-wide distant working visa program (comparable to one introduced in Dubai in October), in a bid to appeal to a rising world pool of digital nomads as non permanent working-from-home conditions grow to be extra everlasting.

The visa is being marketed as a probability for distant employees to reap the benefits of the nation’s low taxes — the UAE doesn’t impose earnings tax on its residents — in addition to its year-round sunshine and five-star life-style.

The move is a daring one within the face of a mass exodus of expats leaving the UAE, the place international employees reportedly make up about 90% of a 10-million robust inhabitants. But Dubai can also be tapping into a rising world development; different vacationer locations equivalent to Antigua and Barbuda, Barbados, Bermuda, Estonia, Georgia and Mauritius have unveiled comparable distant working visas.

Alongside the UAE-wide distant visa announcement, Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, introduced the adoption of multi-entry vacationer visas for all nationalities. The five-year visa allows vacationers to enter a number of occasions and stay within the nation for 90 days on every go to, which may be prolonged for one other 90 days.

Long-term vacation spot for expats

Dubai sunbathers pictured in July 2020.

KARIM SAHIB/AFP by way of Getty Images

It’s the most recent in a string of initiatives Dubai has lately launched to attempt to cement itself as a long-term vacation spot for expats.

Previously, folks couldn’t move to Dubai with out a job provide from a UAE-based employer, with workplaces accountable for offering two-year renewable residence visas and medical insurance coverage. Permanent choices, equivalent to residency or retirement, weren’t obtainable to expats.

But the primary seeds for everlasting residency had been sown in 2018, when a five-year retirement visa was launched for the primary time.

In 2019, the nation launched “golden visas.” This meant high-profile traders and businesspeople may apply for 10-year and five-year visas. It was prolonged to extra sectors, equivalent to medical doctors and engineers, in November 2020.

And in January this year, maybe the largest announcement of all, the federal government opened up Emirati citizenship to expats.

Issam Kazim, chief govt of Dubai’s Tourism Corporation for Tourism and Commerce Marketing (DCTM), informed CNN in late March that round 1,700 functions for the distant working visa had been obtained since October. “Most” of those functions have been accepted and issued, he says.

In January, Kazim informed CNN a additional 16,000 foreigners — lots of them international employees — had opted to keep on within the UAE after Dubai introduced a complimentary one-month extension to all vacationer visas in December due to the onset of world lockdowns. Kazim says he anticipated many of those to “convert into full-time-working virtual applicants in the weeks ahead.”

“Dubai’s response to this pandemic has only strengthened the perception of the city with regards to our proposition, and this is translating into strong uptake of people choosing Dubai as a permanent or semi-permanent base,” Kazim says.

‘One of my favourite cities’

Pictured in february 2021, a dubai health worker prepares an injection of the oxfordastrazeneca vaccine.

Pictured in February 2021, a Dubai well being employee prepares an injection of the OxfordAstraZeneca vaccine.

KARIM SAHIB/AFP by way of Getty Images

CNN spoke to a number of digital nomads who’ve utilized for the distant working visa, who cited Dubai’s life-style, its climate and its relative affordability compared to different expat facilities equivalent to Singapore or Hong Kong as prime causes to relocate.

Peter Walsh, co-founder of an schooling firm in Canada, says he utilized for the visa as he’d lived in Saudi Arabia as a teenager and Dubai stays “one of my favorite cities.”

He deliberate on working remotely from the UAE for up to a year to start with, and probably extending after that.

“I was originally planning to take out the family for an extended break. Maybe as a bonus, get vaccinations while we’re there,” Walsh says.

“It’s been a tough year with Covid so getting a break was my main motivation.”

Walsh utilized for the visa on February 16 and was issued an entry allow on March 2. From there, he has 60 days to enter Dubai. However, with Canada introducing a 14-day quarantine for these getting back from overseas, and with comparatively excessive prices for sponsoring households within the UAE, he is not managed to make it to Dubai but.

The tax query

For entrepreneur Deeya Khemlani, swapping 4 p.m. winter sunsets in London for year-round sunshine in Dubai is sufficient to promote her on the scheme.

Khemlani, one of many founders of vogue label Izaak Azanei, has been frequenting Dubai for years for enterprise, and is worked up on the prospect of splitting her time extra completely between the 2.

“The city really offers the best of everything and it’s a great location geographically for me to get to the countries I need to be for work,” Khemlani says.

Before the UK journey hall closed, Khemlani had been flying “back and forth” between London and Dubai comparatively usually, so had not finalized her software but. However, she intends to within the close to future.

“Quite honestly, during the winter months, Dubai is a welcome escape,” she says.

But whereas this system is being marketed as a shortcut to a tax-free wage, the truth is that candidates will in all probability nonetheless be taxed of their house nation.

David Daly, accomplice at UAE-based Gulf Tax Accounting Group, says residents of different nations wanting to earn a tax-free wage would want to declare themselves a non-resident of their house nation first, which is not attainable whereas holding a full-time job there.

Face coverings are mandatory in all public places in dubai.

Face coverings are obligatory in all public locations in Dubai.

GIUSEPPE CACACE/AFP by way of Getty Images

The matter of double taxation then will depend on tax agreements between every nation. Nearly 120 nations have reciprocal taxation agreements with the UAE, to guarantee people and companies are solely taxed as soon as.

Conscious decoupling

Tlisted below are additionally some caveats to consider.

For the distant working scheme, you should be incomes a minimal of $5,000 per 30 days to apply. It prices $287 per year, plus medical insurance coverage with legitimate UAE cowl and a processing price per particular person.

For a retirement visa, candidates should be 55 or older, have legitimate UAE medical health insurance and fulfill certainly one of these three necessities: earn a month-to-month earnings of Dh20,000 (round $5,500); have Dh1 million in money financial savings; or personal property in Dubai price Dh2 million.

Murtaza Khan, accomplice at immigration agency Fragomen, says there seems to be a “decoupling of visa sponsorship and employment.”

“In order to attract and retain the best and brightest talent, the country’s immigration policy needs to provide appropriate options,” he says.

Looking ahead, he believes there could also be additional insurance policies that present a “balanced employment relationship between foreign workers and employers, rather than the historical sponsorship-led approach.”

The new distant working visas will add to Dubai’s status as a vacationer hub, he says, permitting it to grow to be often called a “virtual workers destination” too.

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