Moving to Dubai from Canada – A Complete Guide

Canadians thinking of a strategic move to relocate to Dubai must act right now! With 40,000 Canadian nationals already enjoying the exceptional perks: global credentials, dynamic economy, and tax-friendly ecosystem, you can be the next flourisher.

Canadian expatriates seeking new horizons can find appealing options in the UAE’s endless vibrancy. However, this ultimate migration is more than packing your belongings, it requires explicit understanding of residency laws, visa policies, living costs, household shipping, and family considerations.

But to make your transition smooth and hassle-free, here’s a detailed, up-to-date guide to help astute Canadians make a deliberate move to Dubai.

Understanding Obligations of Departing Canada

Departure Tax and Tax Residency

Individuals leaving Canada permanently or for a temporary period must determine their tax residency status in the country through CRA (Canada Revenue Agency).

In case of severing residential ties (including partner in Canada, a home, etc.) and establishing a new home in a different country, the individual may be considered a non-resident.

Furthermore, the country applies deemed disposition (departure tax), specifically on capital properties. Under this law, the individual who ceased residency will be treated as if he/she sold and reacquired certain assets at the fair market value.

Tax Withholding on Canadian-Sourced Income

Individuals receiving income from Canada even after leaving, through sources like pensions, rental income, or dividends, come under the imposition of Part I or Part XIII tax.

Residency & Visa in Dubai (UAE)

1. Residency Visa Categories

Individuals looking for visa routes to move to Dubai can find plentiful pathways, including family visas, standard employment-sponsored residence visas, and long-term “Golden-Visa” programs. Other options include property owner visa, remote visa, and retirement visa, etc.

2. Eligibility for Long-Term Residence or Golden Visa

Individuals can qualify for the Golden Visa program as an investor by meeting specified thresholds. For instance, a real estate investment of AED 2,000,000 can grant residency for up to 10 years. Its extension to talent experts, including highly-educated individuals and front-line medical works make it exclusively appealing among different talents globally.

3. Family Sponsorship

After acquiring a valid residence visa, individuals may sponsor their children and spouse. However, the process requires you to meet a specific income level and suitable accommodation.

4. Employment Visa & Work Permit

In case, individual is moving to Dubai from abroad for employment, the residence visa will be sponsored by the employer. Once it is approved, immigrants can acquire a residence permit as well as an Emirates ID.

Housing & Living Costs in Dubai

1. Renting an Apartment

According to Numbeo, the difference between rental costs in Canada and Dubai are as follow:

2. Buying an Apartment

3. Housing Neighborhoods Popular with Expats

Canadian expats looking for a vibrant, cosmopolitan lifestyle:

• Downtown Dubai
• Jumeirah Lake Towers
• Dubai Marina

Canadian expatriates chasing an ultra-luxurious ecosystem but with more family-friendly space:

• Arabian Ranches
• Emirates Hills
• Dubai Hills Estate

Other sought-after areas like Business Bay, Palm Jumeirah, JVC are also considerable, while older districts like Al Barsha and Deira feature budget-friendly options.

Insurance, Healthcare and Driving License Practicalities

1. Mandatory Health Insurance

The UAE law broadly mandates that employers are responsible for providing healthcare insurance to the employees. Additionally, it is treated as a resident prerequisite and holds central significance for obtaining or renewing their residency in Dubai.

While the newly introduced Basic Health Insurance Scheme (around AED 320/yearly) is imposed in certain Northern Emirates effective from 1st January 2025; Dubai operates with its own EBP (Essential Benefits Plan). This insurance typically margins around AED 550 to AED 750 minimum.

2. What to Check as an Expat

• Make sure the job contract covers health insurance.
• Ask about the provided coverage and check whether dependents are included or else you have to apply for a separate insurance.
• Be aware of private hospital’s costly expenses compared to public medical care providers.

3. Driving License Exchange Advantage

Canadian expats in Dubai holding a driving license may convert it to a UAE-issued license without undergoing a complete driving test. However, meeting the specified criteria and acquisition of a valid residence visa is essential.

Setting Up Life & Shipping Your Belongings

1. Moving Household Goods

Be aware of the custom regulations and the documentation required for imported goods. Check for duty-free allowances and understand shipping logistics, which include port clearance and timing.

Note: Special permits may be required for certain items like alcohol and electronics, etc.

Top Moving Companies: Make Move Seamless from Canada to Dubai

• Orbit International Moving Company
• Hercules Moving Company
• Quality Move Management Inc
• AGS International Movers
• ISS Relocations

2. Banking, Utilities & Networking

• It is crucial to open a bank account soon after the issuance of a residence visa. Most account opening in UAE banks requires proof of local address, residence visa, and Emirates ID.
• Register for utilities including water and electricity. However, the process is usually handled by a landlord, while DEWA oversees the registration and management as Dubai Water & Electricity Authority.
• Install internet service at your new address and get a local SIM.

Lifestyle & Family Considerations

1. Spouse’s Visa & Work Permits

Immigrants holding a resident visa can sponsor their spouse for a family visa. A separate work visa will be required in case the spouse opts to work.

2. Schooling in Dubai

Dubai hosts innumerable internationally accredited educational options, making relocation more attractive for Canadian expats. The Knowledge & Human Development Authority (KHDA) oversees the schooling system in the city.

Best Schools in Dubai for Canadian Expats

• Maple Bear Nursery Business Bay
• Canadian Kids Nursery
• Canada International College
• Ambassador International Academy
• The International School of Choueifat

3. Cultural Integration & Recreational Diversity

Given Dubai’s large and diverse expat community groups, weekend options and leisure spaces are available in scale. Popular options include world’s biggest malls, beaches, waterparks, desert trips, and cultural events.

Moreover, English is widely spoken throughout the Emirates but some Arabic knowledge may facilitate the lifestyle more instantly. Also, Canadian expats are required to be mindful of local dress codes, community norms, and social behavior.

Tax-Planning & Financial Strategies

1. UAE’s Income Tax

No income tax on wages is one of Dubai’s major drawcards, which highly contrasts with Canada’s higher tax regime.

2. Currency Exchange & Associated Risks

Review currency exchange rate (CAD -> AED) when moving capital from Canada. Also check potential tax on capital gains, banking charges, and if any Canadian account is active.

3. Long-Term Asset Planning

In case of continuing with real estate or investment assets in Canada, ensure your understanding aligns with tax impositions. For instance, a 25% tax applies on a non-resident of Canada for possessing rental income on properties.

Closing In!

Moving to Dubai from Canada unfolds phenomenal advantages, however the process is long and requires careful panning across multiple facets. From knowing tax status in Canada to understanding living costs and visa opportunities in Dubai, a fruitful reward awaits you at the end.

Canadians can enjoy 6.8% lower living costs in Dubai than in Toronto, Canada. Moreover, the vibrant environment, global connectivity, and tax-friendly income stimulate your choice. With the right preparation and specialist advice, get ready for a smoothly transitioned life in Dubai!