Cost of Living in Dubai

Housing is by far the biggest cost in Dubai. After that come school fees for families, utilities and cooling, transport, health insurance and everyday spending. There is no personal income tax, but a 5% VAT applies to most goods and services, and a housing fee of 5% of your annual rent is added to your utility bill.

We don't quote a single number, because the cost of living depends almost entirely on where you live, your family size and your lifestyle. Instead this guide shows what makes up the cost and points you to the authority that publishes each figure, so you can build a budget from real numbers rather than an average.

Rent, or a mortgage if you buy, is the largest line in almost every budget. It varies widely by area and home type, so check real figures rather than an average:

• Rent. Rents differ by community and are paid in one to four cheques at the start of the lease. At renewal they can rise only within the brackets tied to the Dubai Land Department's rental index (Decree 43/2013). Look up rents for a specific building on the DLD rental index.
• The housing fee. A municipality housing fee of 5% of your annual rent is billed in monthly instalments through your DEWA utility bill — budget for it on top of the rent.
• Buying. If you buy instead, the monthly cost is the mortgage plus service charges and maintenance; see our renting-vs-buying and mortgage guides, and add up the one-off costs with the buying cost calculator.

Electricity and water come from DEWA, billed monthly and rising in summer when the air conditioning runs hardest. Check DEWA's published tariffs for the current slab rates.

Cooling can be separate. Many apartments and some villas are on district cooling (providers such as Empower or Emicool), billed apart from DEWA and sometimes with a fixed capacity charge even when you are away. Ask the building which provider it uses and how it charges before you commit to a home.

What you spend on transport depends on whether you drive or use public transport:

• Public transport — the Metro, tram and buses — runs on the Nol card at RTA fares set by the number of zones you travel. Check current fares on the RTA.
• If you drive, budget for fuel, Salik road tolls (charged per crossing of a toll gate, now with peak and off-peak rates), parking, and annual car registration and insurance. Check current Salik charges and Nol fares on the RTA and Salik.

For families, private school fees are often the second-biggest cost after housing. Fees are set by each school and regulated by the KHDA, Dubai's private-education authority, which publishes every school's fees and inspection rating.

We don't quote school fees — they range widely by curriculum and school. Shortlist the schools near the communities you are considering and check their fees and ratings on the KHDA before you budget.

Health insurance is mandatory for residents in Dubai. An employer usually provides cover for the employee, but you typically pay for your dependants, and the cost depends on the plan and your age.

Check the requirement and the plan options with the Dubai Health Authority before you count on an employer's cover stretching to your family.

The rest — groceries, dining out, phone and internet, and leisure — varies with how you live, so build it from your own habits rather than an average.

• One-off setup costs. Moving in carries a security deposit, the agency fee, Ejari registration, a DEWA deposit and connection, and the first rent cheque(s). Our renting guide lists them.
• Tax. There is no personal income tax in Dubai, but 5% VAT applies to most goods and services (Federal Tax Authority).