Cost of Living in Dubai: A Comparison of Dubai vs London for Expats and Influencers

Are you thinking about moving to another city like Dubai? You may have some commonly asked questions: Is Dubai expensive? How much do you need to live in Dubai?

In this blog post, we’ll go through the cost of living in Dubai and London, two major hotspots for influencers and entrepreneurs seeking new opportunities and growth.

The cost of living in these cities varies significantly, so this comparison can help you make an informed decision about your lifestyle and career before choosing the ideal city for you.





Housing and Accommodation

One of the most significant expenses in any city is housing. In Dubai, you'll find a range of options from luxurious high-rise apartments to spacious villas. London, on the other hand, is known for its historic townhouses and modern flats.

Transportation and Commuting

Getting around the city is a crucial aspect of daily life, with Dubai and London offering unique transportation experiences.

Dubai's public transport system, including the metro and buses, is modern and efficient, often air-conditioned to combat the heat. London's extensive tube and bus network is iconic but can be crowded during peak hours. While public transport in Dubai is generally cheaper, London's system covers a larger area and might be more convenient for some.

A monthly pass for public transport in London is approximately £200 (AED 966), compared to the equivalent of £62.10 (AED 300) in Dubai. [Source: Numbeo] 

Car ownership in Dubai is more common and often more affordable than in London, where congestion charges and parking fees can add up quickly. However, both cities offer ride-sharing services and taxis, with Dubai's options typically being more cost-effective.

Notably, the price of petrol in Dubai is much cheaper, with 1 litre costing approximately 62p (AED 3) compared to £1.52 (AED 7.34) in London. [Source: Numbeo] 

Food and Dining

For influencers and expats, exploring local cuisine and dining out is often a significant part of the experience. Both cities offer a diverse range of culinary options, but the costs can differ substantially.

Grocery prices in Dubai are generally lower than in London, especially for imported goods. Dining out in Dubai can be more affordable, with a wider range of budget-friendly options. London's restaurant scene, while diverse and exciting, often comes with a heftier price tag. 

For an inexpensive restaurant, a meal costs approximately £20 (AED 96.62) in London compared to £9.30 (AED 40) in Dubai. [Source: Numbeo] 

It's worth noting that alcohol is more expensive in Dubai due to restrictions and taxes, while it's more readily available and often cheaper in London.

Taxation and Business Costs

One of the most significant differences between Dubai and London lies in their tax systems, which can substantially impact entrepreneurs and influencers in Dubai.

Dubai is famous for its tax-free income policy, making it incredibly attractive for influencers and businesses. As highlighted in our blog post, residents in Dubai don't pay personal income tax on their UAE earnings. However, it's crucial to understand that UK tax may still apply to UK-sourced income, even if you're a non-resident.

London, as part of the UK tax system, has progressive income tax rates and National Insurance contributions. While this means higher taxes, it also comes with certain benefits and public services.

For businesses, Dubai has recently introduced a 9% corporate tax, effective from June 2023. However, this is still lower than the UK's corporate tax rates. Additionally, Dubai's Free Zones offer various tax advantages and allow 100% foreign ownership, which can be particularly appealing for international influencers and entrepreneurs.



Lifestyle and Entertainment

Dubai and London offer exciting lifestyles, but the living expenses for entertainment and leisure in Dubai can differ significantly.

Shopping in Dubai can be more affordable, especially for luxury goods, with lower import taxes. The city is known for its massive malls and shopping festivals. Whilst London offers a diverse shopping experience, it tends to be more expensive for retail therapy.

For leisure activities, Dubai often provides more affordable options for high-end experiences like desert safaris, water parks, and beach clubs. London's cultural scene, with its museums, theatres, and historical sites, is unparalleled but can come at a higher cost.

Healthcare and education expenses in Dubai can be significant, especially for expats, as private options are often necessary. The NHS in the UK offers free healthcare to its residents, though private options are also available.

So, Is Dubai or London better?

Well, it depends. Your choice between Dubai and London as an influencer or expat depends on various factors including career goals, lifestyle preferences, and financial considerations. While you may favour Dubai for its tax advantages and lower living costs, London provides a rich cultural experience and an established business ecosystem.

Whether you choose Dubai's glitz and glamour or London's history and charm, the choice is yours. At Capture Accounting, we can help you make the move to Dubai and ensure you're all set to make the most of your opportunities. Get in touch with us today to start your journey to Dubai!