Q: I am a senior manager with over 12 years experience, who live in the US and work for a world class organization. I have been recruitted to come to Dubai. I hear there are no taxes here but cost of living is skyrocketing. What would be a good range for a pay I should ask given that my gross pay here in the US is $120,000.
A: Your (I assume yearly) income of USD 120K equals a monthly income of Dhs 36.700. To give you a qualified answer you do not provide enough details. Will your rent be paid? transportation provided? Well, going by your position I assume that your basic salary will be comparable with the salary received in the US but plus benefits. Now you do the Math.. From a monthly gross pay of USD 10K deduct tax, rent, utulities, insurance, health care, living costs incl. gas, etc. Then take Dhs 36.700 income taxfree, free healthcare, paid rent, provided transportation etc. depending what kind of salary package you'll negotiate. The rents in the UAE are skyrocking (that's why people negotiate housing allowances), but the living costs are in your own hand. Compared to the US electricity, water, gas, labour, cigarettes and groceries are much cheaper here. What makes living costs for Americans expensive, is if they want only to buy American/imported things instead local groceries/cleaning items etc. Let me give you some examples: flatrate for PC is Dhs 250 monthly (USD 66,50), Phone calls from landline to landline within Dubai are for free. Filling up a 5er BMW costs Dhs 75 (USD 20), a Toyota Corolla Dhs 50 (USD 14), weekly grocery shopping for 2 persons between Dhs 500 and Dhs 600 (SHOPPING) at local Hypermarkets. A maid depending on her nationality will cost between Dhs 600 and Dhs 1.400 monthly (USA 165 and USD 382) Alcohol and pork items are more expensive than in the USA. Going out for dinner to restaurants located in hotels prices are the same like in the US at compared locations. Going out to restaurants which are not located at hotels and which do not serve any alcohol, you can dine excellent much cheaper than in the US. Said all this: if you are able to negotiate an anual salary package of Dhs 450K + housing + transportation, you'll finacially do better in Dubai than in the US. There is just one "problem". Depending on which state you are from, get information about getting taxed in the US while living aboard receiving a taxfree salary. While living outside the US you still have to claim tax. Hope that helped a bid. Take care.