Why You Should Not Move To Dubai (2025)
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Dubai has become one of the most popular relocation destinations in the world. Entrepreneurs, freelancers, and remote workers are drawn by the promise of zero income tax, world-class infrastructure, and an exciting international lifestyle.
But here is the truth that most glossy ads and Instagram reels do not show you: Dubai is not for everyone. While thousands of people move here successfully every year, many others arrive with the wrong expectations and end up frustrated.
At GenZone, we have helped hundreds of clients successfully establish themselves in Dubai. We know the opportunities, but we also know the challenges. That is why we believe it is just as important to talk about the reasons why you should not move to Dubai in 2025.
If you are considering a move, read this carefully. These are the five biggest reasons Dubai may not be right for you.
1. Believing 0% Tax Means No Rules
The most common myth about Dubai is that zero personal income tax means complete freedom from financial rules. Many newcomers assume they can simply make money, cash it out, and never worry about regulations. That is not how the system works.
If you establish a company in Dubai — whether in a free zone or on the mainland — you are expected to comply with local laws. This includes:
Corporate tax registration: Profits above a certain threshold are now subject to a 9% corporate tax.
VAT registration and filing: Businesses that meet the revenue threshold must charge and file VAT.
Annual audits and compliance checks: Depending on your license type, you may be required to submit audited accounts.
AML (Anti-Money Laundering) compliance: Some sectors face additional scrutiny, especially when handling large financial transactions.
These requirements are not overly complicated. In most cases, it is just about filing documents and keeping your records in order. But ignoring them can have serious consequences. We have seen companies have their bank accounts frozen for failing to respond to compliance requests.
Dubai rewards entrepreneurs who play by the rules, but if you are unwilling to be compliant, this is not the place for you.
2. Confusing Residency With Tax Residency
Another reason people run into trouble is misunderstanding the difference between residency and tax residency.
Holding a Dubai residence visa is not the same as being considered a tax resident of the UAE. For tax residency, you generally need to:
Spend at least 90 days per year in Dubai, and in some cases 183 days depending on your circumstances.
Have a place of residence in Dubai (short-term rental or long-term lease).
Be able to demonstrate ties that show Dubai is your center of life.
If your plan is to “touch down” in Dubai for a day every six months just to keep your residency active, you are likely to face problems. Particularly if you are coming from a country with aggressive tax collection policies — like Canada or the UK — you need to ensure you qualify for UAE tax residency properly.
Why does this matter? Because at some point, you may need to apply for a Dubai Tax Residency Certificate to show your home country’s authorities. If you cannot provide proof that you meet the requirements, your tax residency claim could be rejected.
Dubai is very clear about the rules. If your strategy depends on shortcuts or vague interpretations, you will run into trouble.
3. Underestimating the Cost of Living
Dubai is often marketed as a luxury city where you can live a glamorous lifestyle on far less money than in London, New York, or Toronto. While that is partly true — Dubai can be more affordable than other global hubs — it is still an expensive city by most standards.
Some people arrive thinking their income will stretch much further than it actually does. For example:
A comfortable one-bedroom apartment in a central area can cost between AED 6,000 to AED 10,000 per month.
A decent lifestyle including food, transport, and leisure can easily exceed AED 15,000 per month for a single professional.
Luxury extras like renting a Lamborghini? Expect to pay around AED 2,500 per day — not exactly a weekly habit.
We generally recommend that Western professionals relocating to Dubai aim for an income of at least USD 5,000–6,000 per month to live comfortably. If you are from a region where you are used to lower costs of living, you can survive on less — but you will need to adjust your expectations.
Dubai rewards people who budget realistically. If your move is based on the assumption that you can replicate an influencer lifestyle on a modest salary, you will be disappointed.
4. Choosing the Wrong Visa or Business Structure
Another major pitfall is rushing into the wrong setup. Dubai offers multiple options: mainland companies, free zone companies, freelance visas, and more. Each option has its own:
Costs and renewal fees
Eligibility requirements
Processing times
Restrictions on activity and location
Banking implications
Choosing the wrong structure can create major headaches. For example, some free zones are known for slow processing or higher compliance demands. Others may not be recognized as strongly by local banks, making it harder to open or maintain an account.
We have even seen professionals from the UK or Europe have their visa applications rejected simply because of the free zone where they registered their license.
This is why it is critical to understand your long-term goals before you set up. The “cheapest” option is not always the best one. A little research — or professional guidance — can save you a lot of time and money.
5. Dubai Can Change Your Outlook on Home
This last point is not about taxes, visas, or compliance. It is about mindset.
Dubai has a way of reshaping how people view their home country. Many newcomers arrive planning to stay for only two or three years, earn some tax-free income, and then return home. But after living here, their outlook often changes completely.
Why? Because Dubai offers:
Exceptional infrastructure
Year-round sunshine
A safe and secure environment
A community of ambitious, international professionals
A sense that opportunities are limitless
Going back to a country with higher taxes, slower systems, or less safety can feel like a downgrade. We have seen many clients who initially planned a short stay but ended up making Dubai their permanent base.
This is not a problem for everyone. But if you are emotionally attached to the idea of “going back home one day,” living in Dubai might make that return much harder.
What About the Heat?
A question that always comes up is whether Dubai is too hot. Summers here are long and temperatures rise above 40°C. But for many residents, the heat is not a dealbreaker.
Why? Because:
Most people spend their time indoors in air-conditioned spaces.
Summer is quieter, with fewer tourists and lower prices.
Many residents even enjoy the slower pace and cheaper rates during the season.
In fact, many long-term residents come to appreciate the summer months. If you are someone who spends all day outdoors, the heat will be tough. But if you live and work in modern Dubai, it is far less of an issue than most outsiders imagine.
Final Thoughts
Dubai is an incredible place to live and work. It is one of the safest, most dynamic, and most business-friendly cities in the world. But it is not a one-size-fits-all solution.
You should not move to Dubai in 2025 if:
You think zero tax means zero rules
You do not plan to meet the requirements for tax residency
You cannot realistically afford the lifestyle you want
You rush into the wrong visa or company setup
You are not prepared for how much Dubai may change your outlook on your home country
If, however, you understand these realities and still feel excited about the opportunity, then Dubai may be exactly the place for you.
At GenZone, we specialize in helping entrepreneurs, freelancers, and businesses set up in Dubai the right way. From choosing the correct structure to handling compliance and banking, we ensure your move is smooth and sustainable.
If you are ready to explore your options, you can book a consultation with our team. And if you are not ready yet, continue reading our blog — we share transparent insights so you can make the right decision for yourself.
