Tax-Free Lure: UAE, Qatar Offer No Income Tax, But Beware Hidden Costs & Job Risks
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Moneycontrol•07-01-2026, 15:18
Tax-Free Lure: UAE, Qatar Offer No Income Tax, But Beware Hidden Costs & Job Risks
- •Many countries, especially in the Middle East like UAE and Qatar, offer no personal income tax, attracting global professionals.
- •These economies are largely funded by natural resources (oil/gas) and indirect taxes like VAT, corporate tax, and excise duty, not personal income tax.
- •Despite zero income tax, cities like Dubai have extremely high living costs, with rents and daily expenses significantly higher than in places like India.
- •Job security is a major concern; visa termination upon layoff means limited time to find new employment or leave the country, often without legal protection.
- •While beneficial for the wealthy, the system can be challenging for the poor due to low wages, long hours, and poor work-life balance, effectively paying a 'lifestyle tax'.
Why It Matters: Don't chase the 'Dubai Dream' blindly; tax-free nations hide high costs and job risks.
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