What if I stay? A guide to long-term living in Dubai

Please note: This article does not constitute advice or any form of recommendation. Barclays does not offer tax advice.

Dubai has long attracted professionals from around the world, thanks to its luxurious lifestyle, tax-friendly policies, and vibrant business scene. Yet, historically, expats have tended to view their time in the UAE as a short-term commitment – merely a chapter in their careers before heading home.

But times are changing. With initiatives like the Golden Visa programme and an expanding expatriate community, more people are considering Dubai not just for work, but also as a long-term home – and even a place to retire.

If you're planning to stay in Dubai for the long haul, there are several factors to think about – particularly around residency, succession and liquidity planning. In our article below, we delve into how these factors play out within the unique legal and financial landscape of the UAE.

Golden stay – your future in Dubai

The UAE government’s Golden Visa has simplified long-term residency for expats, offering up to 10 years of residency with the option for ongoing renewal. This provides a stable and flexible environment for professionals, investors and high-net-worth individuals alike.

Unlike typical work visas, the Golden Visa doesn’t require an employer sponsor, allowing individuals to apply independently. Holders enjoy a range of benefits, including tax advantages, access to healthcare, and the ability to sponsor family members and domestic staff. Additionally, it's easy to travel in and out of the UAE with this visa.

“Previously, without the Golden Visa option, such long-term plans were difficult to realise,” says Katie Cooper, International Wealth Adviser at Barclays Private Bank and Wealth Management. “Now, for those considering the UAE as a potential retirement spot, it’s crucial to revisit estate and succession planning to address the country’s unique inheritance laws.”

Sharia law and succession 

The UAE's succession laws, rooted in Sharia principles, dictate how your assets – especially UAE property and onshore accounts – are distributed after you pass away.

Under Sharia law, your belongings will be divided among your family members in specific shares, contrasting with the approach many Western expats are accustomed to in their home countries, where they may have greater freedom when deciding how to distribute their assets.

And for those from the UK, the situation can become further complicated because Sharia law doesn’t automatically afford a spouse the right to inherit all assets (as is often the desired outcome with British expats, subject to UK inheritance tax rules, where UK spouse relief applies).

“Without careful planning, your spouse might not inherit all your assets,” warns Cooper. “Sharia law may also apply to your UAE-based assets unless you take specific steps to outline a different plan.

“However, expats in Dubai have options. By registering a Will with either the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM) – the ADGM is especially helpful to Muslim expat families – you can choose to have your home country’s laws apply to your assets in the UAE. This ensures that your estate planning aligns with your wishes.

“It’s also important to note that for families wishing to follow Sharia rules for asset succession, especially if they hold assets outside the UAE (which may not automatically adhere to these rules), a Will can help ensure these wishes are respected and prevent complications from intestacy.

“Of course, all families will need to seek proper legal advice to ensure that their estate planning aligns with both their wishes and the laws of relevant jurisdictions – helping prevent potential conflicts.”

Financial stability for expats

While the UAE has made significant strides in facilitating long-term residency, financial security for retirement remains a critical concern for expats. Historically, UAE employers did not provide pensions to expats, relying instead on end-of-service gratuities, which could prove unreliable if a company went bankrupt.

Fortunately, there are now better alternatives, including voluntary pension schemes like the UAE’s Golden Pension scheme (designed primarily for expats working in the private sector), which offers greater stability for retirement planning.

For expats from places like the UK, high inheritance taxes can also be a real issue, particularly if their estate is taxed in multiple jurisdictions.

This becomes even more pressing for those considering a long-term stay in Dubai, as the complexities of navigating these tax obligations can impact financial planning and estate management.

“To avoid these financial headaches, you need to plan for the future and be proactive,” says Cooper. "Strategies like life insurance, having a cash cushion, or maintaining a readily available investment portfolio can help ensure that you meet future tax obligations, protecting your estate and providing peace of mind for your loved ones."

Additionally, it can also be a good idea to keep up-to-date on the UAE's financial rules and estate planning options – to further strengthen your financial security, helping to make the most of your retirement years.

Navigating multiple legal systems

Staying in Dubai long-term requires an understanding of how UAE laws interact with those of your previous home country.

“Your offshore assets might follow different rules,” says Cooper. “It's important to understand how these legal systems overlap. Legal experts can help make sure your estate planning is what you want in all the right countries.

"And as more and more expats choose to stay in Dubai after they finish working, having solid financial plans and succession strategies has become crucial. From Golden Visas and DIFC Wills, to careful liquidity planning, the UAE offers various solutions to ensure your future is more secure.”

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