People of Dubai have long been drawn to the city as a destination for expats from all over the globe, but in recent years there has been a rising trend towards residents preferring to remain for extended periods of time. After considering the issue further, the UAE cabinet passed a legislation in 2018 establishing a renewable five-year retirement visa, which became effective a little over a year later.
In his capacity as a partner at BSA Lawyers, Michale Kortbawi said that the new retirement visa will alter Dubai’s status as “no longer a location where you come, you work, you take your money, and you go.” It is providing foreign nationals with the opportunity to invest and establish themselves in the city.
Last year, according to estimates from the United Nations, the UAE welcomed more migrants than either France or Canada combined.
To be eligible for the visa, applicants must satisfy one of four requirements. They must either have a monthly income of roughly 4,600 euros or evidence of savings in excess of 230,000 euros to be considered for this position. Alternatively, they must possess a property worth at least 460,000 euros, or have a combination of funds and property worth at least 460,000 euros, to be considered.
Although originally intended for existing residents of Dubai, the visa system will eventually be opened up to individuals from all over the globe. The idea is that people will come to the city and spend their retirement years here, taking advantage of the year-round sunlight and the many activities that the city offers.
The retirement visa is intended to not only draw attention to the city’s distinctive lifestyle, but also to contribute to the country’s economic growth by positioning it as a commercial and investment hub. Harsha Varyani is in her fifties and has been a resident in Dubai for the last eight years, where she has even started her own little company.
Possessing the retirement visa for herself takes a weight off her shoulders, and “Fortunately, I won’t have to consider relocating in the near future. It may be that in a year or two, I will be able to stay on for a longer period of time and dedicate my time and energy to my company, as well as do what I am enthusiastic about doing “”Dubai,” says the author.
Health-care facilities, on the other hand, become more essential as we get older.
Andre Daoud, the CEO of Med Care Hospitals and Medical Centers, says his company’s services are evolving to meet the needs of a changing population. “It’s critical that they’re in accordance with those requirements,” he adds, since the visa is being extended to more older individuals. That is why they are expanding the range of programmes available to people in that age group.
Individuals in the United Arab Emirates do not pay income tax, which makes the nation appealing to retirees. However, the consequences for those who live in the city will differ from country to country when it comes to their pension.
For individuals who reside outside of Sweden, pensions are subject to SINK tax, which is either nil or 25 percent of your income above the personal allowance, depending on your situation. The United Kingdom and the United Arab Emirates have a double tax treaty in effect, which should guarantee that British pensioners who are already paying their taxes in the United Kingdom do not have to pay any additional taxes in the UAE. A double taxation agreement exists between Spain and the United Arab Emirates as well. Taxes are only paid once in Spain, if they are relevant.
As soon as someone decides to remain in Dubai, the location of their home becomes very essential, whether they are renters or purchasers.
For Lewis Allsopp, the CEO of Allsopp & Allsopp, a real estate brokerage firm based in Dubai, the introduction of the new retirement visa is a boon for the property sector.
“As a vendor or landlord, I believe that this will undoubtedly result in an increase in customer traffic.
“The real estate market relies on people moving here, settling here, and staying here in order to maintain its vigour.
“As a result, it’s certainly excellent news for me.”
Those looking to retire in Dubai now have a fresh avenue of hope thanks to the five-year retirement visa. It hopes to persuade more individuals to remain in the city and make it their permanent residence.