Each year thousands of Canadians are moving from Canada to Dubai. But why is that and how does one go about it?
This comprehensive guide covers the main reasons why Canadians move to Dubai, how to do it and what to carefully consider when doing so.
5 Benefits – Why are Canadians moving to Dubai?
Moving to Dubai offers Canadians several advantages that make it an attractive destination. Here are five major benefits:
1. Tax-Free Income
- Dubai does not impose income tax on salaries, allowing Canadians to enjoy higher take-home pay compared to working in Canada.
- This is particularly appealing for professionals and entrepreneurs looking to maximize savings and investment potential.
2. High Standard of Living
- Dubai offers a luxurious lifestyle with access to world-class infrastructure, entertainment, and services.
- Residents enjoy modern housing, advanced healthcare facilities, and an extensive selection of leisure options, including beaches, desert safaris, and high-end shopping malls.
3. Professional and Business Opportunities
- Dubai is a global business hub, offering abundant opportunities in sectors like finance, technology, tourism, and construction.
- Canadians can benefit from a thriving economy, networking with professionals from around the world, and easy access to emerging markets in the Middle East, Asia, and Africa.
4. Cultural Diversity
- Dubai is home to a highly multicultural society, with residents from over 200 nationalities. Canadians often find it easy to adapt to the inclusive and vibrant community.
- English is widely spoken, and Canadian expats can connect with a substantial Canadian expatriate community.
5. Safety and Quality of Life
- Dubai is one of the safest cities globally, with low crime rates and a strong emphasis on public security.
- Canadians moving with families appreciate the safe environment, excellent international schools, and family-friendly activities.
These advantages, combined with year-round sunshine and a thriving social scene, make Dubai an enticing destination for Canadians seeking new opportunities and experiences.
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How to move to Dubai from Canada – Step by Step
Moving to Dubai can seem overwhelming but here is a clear and precise step by step guide on how to move there from Canada.
Research and Planning
- Familiarize yourself with Dubai’s lifestyle, culture, climate, and cost of living.
- Identify potential neighborhoods to live in based on your preferences (proximity to work, schools, amenities, etc.).
- Review your reasons for moving and evaluate if Dubai aligns with your long-term goals.
Secure Employment or a Sponsor
- Obtain a job in Dubai or secure a sponsor for your visa (usually an employer or family member).
- Ensure your employer provides a contract that specifies terms, including salary, benefits, and visa sponsorship.
- Alternatively
Apply for a Residency Visa
- Work Visa: Your employer will sponsor and apply for your visa.
- Investor Visa: If starting a business or investing, you may apply for this visa category.
- Family Visa: If joining family in Dubai, they will need to sponsor your visa.
Prepare Necessary Documents
- Valid Canadian passport (must be valid for at least 6 months).
- Attested academic and professional certificates (if required for work).
- Marriage or birth certificates (if sponsoring dependents).
- Medical fitness test results (conducted after arrival in Dubai).
- Police clearance certificate from Canada (depending on visa requirements).
Plan Your Finances
- Open a bank account in Dubai (some banks allow non-resident accounts initially).
- Arrange funds to cover initial relocation costs, including housing, transportation, and utilities.
- Settle any outstanding financial obligations in Canada.
Find Accommodation
- Research housing options online through platforms like Dubizzle or Property Finder.
- Decide between renting or buying based on your needs and budget.
- Be prepared to pay an upfront deposit and up to 12 months of rent checks.
Arrange Healthcare
- Dubai requires residents to have health insurance.
- Ensure your employer provides coverage, or purchase private health insurance.
Book Flights and Shipping
- Book your flight to Dubai once your visa is approved.
- Hire international movers to transport personal belongings.
- Create an inventory of items and check Dubai’s customs regulations for prohibited items.
Close Affairs in Canada
- Notify utility providers, landlords, and other relevant parties of your move.
- Forward your mail or update your address with Canadian services.
- Cancel subscriptions or services that you won’t use abroad.
After Arrival in Dubai
- Complete a medical fitness test and apply for an Emirates ID (mandatory for all residents).
- Open a local bank account if you haven’t already.
- Get a local SIM card and internet connection.
- Familiarize yourself with the city, transportation, and local laws.
Bonus Tips:
- Stay informed about Dubai’s immigration rules and requirements.
- Consider joining expat communities to ease the transition.
- Respect the local culture and laws to avoid fines or penalties.
This checklist will help streamline your move to Dubai from Canada!
Key Consideration: Departure Tax
What Assets Are Affected?
Deemed Disposition Applies To:
- Investments: Stocks, mutual funds, ETFs, and other investment assets.
- Real Estate Outside of Canada: If not eligible for exemptions.
- Shares in Private Corporations: If held outside registered accounts.
- Certain Trust Interests.
Exemptions:
- Canadian Real Estate: If you keep Canadian real property, it is not subject to departure tax, but future capital gains on this property will be taxed in Canada when sold.
- RRSPs, RRIFs, and TFSAs: Registered accounts are not subject to deemed disposition upon departure but may have different tax rules post-departure.
- Personal Use Property: Household items, cars, and other personal-use items below a certain threshold.
How to Calculate Departure Tax
- Determine Your Assets: Identify the fair market value (FMV) of your taxable assets.
- Subtract the Adjusted Cost Base (ACB): This is your original purchase price plus any adjustments.
- Calculate Capital Gains: Pay tax on 50% of the net gains (inclusion rate for capital gains in Canada).
Reporting the Departure
- File Form T1243: Report the deemed disposition and calculate the amount of departure tax.
- Form T1161: List all property owned at the time of departure exceeding $25,000 in value.
- Final Tax Return: File a final tax return to settle your taxes for the year you leave.
Payment of Departure Tax
- You can elect to defer payment by providing security (such as a bond or bank guarantee) to the Canada Revenue Agency (CRA).
- Interest may apply if you defer the tax payment.
Avoiding Double Taxation
Canada has tax treaties with many countries, including the UAE. This can help avoid double taxation, as you may receive foreign tax credits for taxes paid in Dubai.
Exemptions for Short-Term Departures
If you leave Canada temporarily and maintain significant residential ties (e.g., owning property, family in Canada), you might still be considered a Canadian resident for tax purposes and not subject to departure tax.
Professional Advice
The rules around departure tax can be complex, especially for high-value assets. It’s advisable to consult a tax professional or financial advisor to ensure compliance and minimize your tax burden.
Summary
They are many reasons why Canadians move to Dubai. Among the highest are low taxes, great job opportunities, safety and overall quality of life. Moving can seem difficult but it is a very straight forward process. Planned carefully in can be done within a couple of days as company setup in Dubai and getting a Visa and Emirates ID a simple and fast process.
