Dubai's zero personal income tax is the single most discussed compensation topic among European tech workers considering a move. On paper, keeping 100% of your gross salary sounds transformative. In practice, the decision involves trade-offs that go well beyond the tax line. Here is a data-driven comparison of working in tech in Dubai versus Europe's major hubs.

The Tax Advantage: Real and Significant

Let us start with what makes Dubai compelling. The UAE levies no personal income tax, no capital gains tax, and no payroll tax on employees. There is a 5% VAT on goods and services (introduced in 2018), and a 9% corporate tax (introduced in 2023 for profits above AED 375,000), but as an employee, your gross salary equals your net salary.

Compare this to European effective tax rates for a tech professional earning the equivalent of EUR 100,000:

| City | Effective Tax Rate | Net Income | |---|---|---| | Dubai | ~0% | EUR 100,000 | | Zurich | ~22% | EUR 78,000 | | London | ~33% | EUR 67,000 | | Dublin | ~38% | EUR 62,000 | | Amsterdam | ~40% | EUR 60,000 | | Berlin | ~42% | EUR 58,000 | | Munich | ~42% | EUR 58,000 | | Paris | ~45% | EUR 55,000 |

On the same gross salary, a tech worker in Dubai takes home EUR 42,000–45,000 more per year than their counterpart in Berlin or Paris. Over five years, that compounds to over EUR 200,000 in additional savings—before investment returns.

But the Gross Salaries Are Different

Here is the catch: Dubai tech salaries are generally lower than western European salaries, and significantly lower than top-tier European locations like Zurich or London Big Tech offices.

Median software engineer base salaries:

  • Dubai: AED 300,000–420,000 (~EUR 75,000–105,000)
  • London: GBP 60,000–90,000 (~EUR 70,000–105,000)
  • Berlin: EUR 60,000–85,000
  • Amsterdam: EUR 60,000–90,000
  • Zurich: CHF 110,000–150,000 (~EUR 115,000–157,000)

At similar gross salary levels, the tax advantage decisively favors Dubai. But Zurich-level salaries combined with Switzerland's relatively low taxes (22% effective) can actually compete with Dubai on take-home pay.

The Dubai advantage is most dramatic when compared to high-tax European countries: Germany, France, Belgium, and the Netherlands.

Cost of Living: Dubai Is Not Cheap

Dubai's zero-tax advantage is partially offset by its cost of living, particularly housing:

Housing: A one-bedroom apartment in Dubai Marina or Downtown runs AED 7,000–10,000/month (~EUR 1,750–2,500). This is comparable to Amsterdam or Munich, cheaper than London or Zurich, but significantly more expensive than Berlin.

Schooling: If you have children, international school fees in Dubai range from AED 30,000–80,000/year per child (~EUR 7,500–20,000). In Europe, public education is free and often excellent.

Healthcare: Dubai requires employer-provided health insurance, which is standard in tech roles. Quality is generally good, but comprehensive coverage for families may require additional private insurance. European public healthcare is included in taxes.

Food and dining: Groceries are 10–20% more expensive than most European cities due to import costs. Dining out is comparable to London.

Transportation: Public transport is limited. Most residents need a car. Fuel is cheap (AED 3/liter), but car payments, insurance, and parking add AED 2,000–4,000/month. European cities generally have excellent public transport.

Utilities: Air conditioning in Dubai's heat is expensive. Electricity bills of AED 500–1,000/month are common for a one-bedroom apartment—2–3x European averages.

The Adjusted Comparison

Let us model a mid-career software engineer with a gross salary equivalent to EUR 90,000 in each location:

| | Dubai | Berlin | London | Amsterdam | |---|---|---|---|---| | Gross salary | EUR 90,000 | EUR 90,000 | EUR 90,000 | EUR 90,000 | | Tax + social | EUR 0 | EUR 37,800 | EUR 29,700 | EUR 36,000 | | Net income | EUR 90,000 | EUR 52,200 | EUR 60,300 | EUR 54,000 | | Rent (annual) | EUR 24,000 | EUR 16,800 | EUR 26,400 | EUR 21,600 | | Other costs | EUR 18,000 | EUR 14,400 | EUR 16,800 | EUR 15,600 | | Disposable | EUR 48,000 | EUR 21,000 | EUR 17,100 | EUR 16,800 |

Even after higher living costs, Dubai's zero-tax advantage leaves the engineer with roughly EUR 27,000–31,000 more in annual disposable income. That is the real delta.

See more detailed breakdowns for 100k in Dubai vs 100k in Berlin.

Quality of Life Considerations

Financial advantage aside, there are significant lifestyle factors to weigh:

Favoring Dubai

  • Year-round sunshine (though summers exceed 45C and outdoor activity is limited May–September)
  • International community with professionals from around the world
  • Safety: Very low crime rates
  • Modern infrastructure including world-class airports and connectivity
  • Savings potential: The primary reason most tech workers move to Dubai

Favoring Europe

  • Worker protections: European labor laws provide strong employment protection, generous severance, and limits on working hours. Dubai's labor law has improved but offers less protection.
  • Visa independence: European residents (especially EU citizens) are not tied to an employer for residency. In Dubai, your visa is linked to your employer—lose the job, lose the visa (with a grace period).
  • Social safety net: Unemployment insurance, state pensions, and public healthcare provide a financial floor that does not exist in Dubai.
  • Cultural richness: Access to centuries of history, diverse cuisines, walkable cities, and seasonal variety.
  • Work-life balance culture: European tech companies typically respect boundaries around working hours and vacation time.
  • Long-term residency path: EU permanent residency and citizenship are available after 5–10 years. Dubai offers long-term visas but paths to citizenship are extremely limited.

Who Dubai Works Best For

Dubai is most financially advantageous for:

  • High earners (AED 400,000+/year) where the absolute tax savings are largest
  • Single professionals or couples without children (no school fees, lower housing needs)
  • Focused savers planning to accumulate aggressively for 3–5 years then relocate
  • Remote workers earning US or UK salaries while living in a zero-tax jurisdiction
  • Professionals from the Middle East, South Asia, or Africa who value proximity to home

Dubai is less advantageous for:

  • Families with school-age children (school fees erode the tax benefit significantly)
  • Workers who value employment security and strong labor protections
  • Those seeking permanent residency or citizenship
  • People who prefer walkable cities with mild climates year-round

The Strategic Play

Many tech workers use Dubai as a wealth-building phase—spending 3–5 years aggressively saving and investing, then returning to Europe (or relocating to another destination) with a substantially larger financial cushion.

A five-year stint saving EUR 25,000–35,000 more per year than you would in Europe, invested at a reasonable return, could yield EUR 150,000–200,000 in additional wealth. That is a house deposit in most European cities or a significant head start on financial independence.

Compare your salary in Dubai vs any European city on our salary insights directory and comparison tool.