Retiring in Dubai: a complete guide

Summary 

What are the pros and cons of retiring in Dubai from the US? 

The most populous city in the United Arab Emirates, Dubai is a luxurious haven for those looking to spend their golden years in the Middle East.

The city has become a popular retirement destination for American retirees in recent years.

However, retiring in Dubai could prove challenging to those who don’t take the time to understand the pros and cons unique to this city. 

How much do you need to retire in Dubai?

If you plan to retire in Dubai from the US, you will need to ensure you’ll be able to cover essential expenses, such as housing, healthcare, and transport.

Firstly, to qualify for Dubai’s retirement visa, retirees must meet one of the following financial criteria: a monthly income of $5,445, savings of $272,000, or property valued at $544,000.

On top of that, a retired couple may need between $4,000 and $8,000 per month to enjoy a comfortable retirement. This amount also depends on your lifestyle preferences; for example, if you plan to live a more frugal lifestyle, you will need less.

Below is a breakdown of estimated monthly expenses:

What is the cost of living in Dubai vs. the US for retirees?

The cost of living in Dubai is competitive compared to the US, particularly for retirees.

Dubai’s tax-free income structure allows retirees to stretch their savings, unlike the US, where federal and state taxes can significantly reduce disposable income.

Housing, however, is more comparative. In Dubai, rent typically ranges from $1,900 to $4,000 per month, while in the US, rents can vary from $1,500 in smaller cities to $3,500 or more in major metropolitan areas.

For those looking to own their home, Dubai is more expensive, with a villa typically costing upwards of $800,000. In the US, the average house price is around $400,000.

Healthcare is free in Dubai, although certain services, such as vision and dental, are not included. All Dubai residents, including expats, are required to have private health insurance, which costs an average of $1,600 a year.

This is more affordable than the US's healthcare system, where insurance can cost up to $9,000 a year for a single person.

Below is a side-by-side comparison of the price difference between the two regions:

What is the average cost of retirement in Dubai? 

Retiring in Dubai typically costs between $54,500 and $150,000 per year, depending on lifestyle.  

The high costs are primarily due to housing, utilities, transportation, food, and entertainment expenses.  

While luxurious amenities and excellent healthcare are appealing, careful budgeting is essential for a comfortable retirement in Dubai. 

Do you pay taxes after retirement in Dubai? 

Dubai doesn't tax retirement income. 

This makes it attractive for retirees, who can access their savings and benefits easily.  

However, it's important to consult a financial advisor about potential tax implications back in the US. 

What age can you retire in Dubai? 

There is no official retirement age in Dubai for expats, but the Residence Visa for the Retired requires applicants to be at least 55 years old.  

For a large majority living in the UAE, 60 is the most common retirement age.  

Age-related benefits for retirees in Dubai mainly focus on healthcare discounts and specialized residential communities. 

What programs are there for emigrating to Dubai from the US? 

There are several programs for retirees wanting to emigrate to Dubai, including the Residence Visa for the Retired (requiring AED 1 million in property, savings, or monthly income), the Golden Visa (for significant investors), and the Freelance/Remote Work Visa.  

Other options for emigration to Dubai include Investor, Property Owner, and Family Visas.  

Requirements vary, so consulting a professional is recommended.  

What visas do I need to retire in Dubai from the US? 

To retire in Dubai, you primarily need a Residence Visa for the Retired if you are 55+ and have $275,000 in income, savings, or property.  

The Golden Visa is an option for significant investors or those with special talents.  

Property Owner and Investor Visas are available depending on your situation.  

Remember to consider health insurance, housing, cost of living, and cultural adaptation. 

What are my healthcare options in Dubai? 

Dubai offers retirees both public and private healthcare options.  

Public hospitals and clinics are available but may have longer wait times.  

Private healthcare is renowned for its quality but can be expensive without insurance. Health insurance is mandatory for all residents.  

Alternative medicine and specialized dental/optical care are also available.  

Dubai's healthcare system is considered top-tier, with highly qualified professionals and modern facilities. 

What is the housing market in Dubai?  

The Dubai housing market is known for its luxury properties and a diverse range of options for buyers and renters. 

The average cost per square foot in Dubai varies between $200 and $950 for apartments and villas. 

What happens to my US retirement benefits if I retire in Dubai?   

Retirement benefits from your home country, like pensions and 401(k)s, are generally accessible in Dubai.  

However, the US may still tax this income, so it’s worth seeking out professional financial advice to ensure you’re paying the right amount of tax.  

Get expert financial advice 

Emigrating to Dubai is an excellent choice for retirees looking for a safe, modern city with great weather all year round. However, Dubai also has a fairly high cost of living compared to other popular retirement cities. 

Unbiased can match you with an SEC-regulated financial advisor who can offer expert retirement advice to help you secure your financial future.