UK vs UAE Cost of Living 2025

It depends on your situation. For singles and couples without children, UAE is usually financially better due to 0% income tax despite similar day-to-day costs. For families with children, school fees (£8,500-23,000/year per child) are a significant additional expense, but most UK expats negotiate education allowance into their employment packages.

The tax savings in UAE (keeping 100% of salary vs 58-68% in UK after tax and NI) typically offset any higher living costs, resulting in higher disposable income for most British expats.

Due to 0% income tax in UAE, you need a lower gross salary to maintain the same lifestyle. For example:

• • A UK salary of £60,000 (take-home ~£44,000) = UAE salary of ~AED 200,000 (£43,000) for similar take-home
• • The equivalent lifestyle might actually cost less in UAE due to no council tax, cheaper petrol, and lower VAT (5% vs 20%)

For families: Add school fees to the calculation. If employer provides education allowance, your required salary is lower. If not, you'll need significantly more to cover £8,500-23,000/year per child.

School fees (AED 40,000-110,000 per child per year / £8,500-23,000) are substantial. Most UK expat families handle this in one of these ways:

• • Education allowance: Negotiate full or partial school fees coverage in employment package (most common)
• • Higher base salary: Factor school costs into salary negotiations
• • Tax savings offset: The 0% tax can save £20,000-40,000/year for higher earners, which covers school fees
• • Employer direct payment: Some companies pay schools directly

Critical: Always negotiate education benefits before accepting a UAE role if you have school-age children.

Most UK expats save significantly more in UAE due to the 0% income tax. Here's why:

• • Tax savings: Keep 32-47% more of your salary (no income tax or NI)
• • Lower VAT: 5% vs 20% in UK
• • No council tax: Save £1,000-3,000/year
• • Cheaper fuel: Roughly half UK prices
• • Better weather: No heating bills!

Even with school fees for 2 children (£17,000-46,000/year), many UK expats still save more due to the massive tax difference. The key is negotiating a good package that includes housing and education allowances.

Some costs UK expats might not initially consider:

• • Annual rent payment: Unlike monthly in UK, you typically pay 1-4 cheques upfront
• • School deposits: 5-10% of annual fees as refundable deposit
• • Visa costs: Medical test, Emirates ID, visa processing (often employer-covered)
• • Furniture: Many apartments are unfurnished (can also rent furnished)
• • Summer escape: Many expats leave UAE during hottest months (July-August)
• • UK visits: Flights home to see family
• • Private health copays: AED 20-100 per doctor visit depending on insurance

However, these are typically offset by the significant tax savings and lifestyle benefits.