Overview: Global Business Hubs
The UAE (particularly Dubai) and Singapore are both premier global hubs competing for international talent and business. The UAE's headline-grabbing 0% personal income tax stands out, while Singapore offers low taxes combined with world-class infrastructure and stability.
But there's more to the story than just income tax. Corporate taxes, living costs, visa requirements, and lifestyle factors all play important roles in the decision.
🇦🇪 UAE: 0% Income Tax
What you earn is what you keep (for personal income)
Quick Comparison at $150,000 Salary
| Metric |
🇦🇪 UAE |
🇸🇬 Singapore |
| Gross Salary |
$150,000 |
$150,000 |
| Income Tax |
$0 |
~$22,500 |
| Social Contributions |
$0 (expats) |
$0 (foreigners)* |
| Net Take-Home |
$150,000 |
~$127,500 |
| Effective Tax Rate |
0% |
~15% |
| Annual Tax Savings (vs SG) |
+$22,500 |
Baseline |
*Singapore CPF contributions apply only to citizens and PRs, not foreign workers
Key Insight
- UAE wins on pure tax: 0% income tax is hard to beat
- But consider: Singapore has no hidden costs; UAE introduced 5% VAT and 9% corporate tax
- For investors: Both have 0% capital gains and dividend taxes
- Lifestyle: Very different - desert luxury vs tropical city-state
Tax System Comparison
| Tax Type |
🇦🇪 UAE |
🇸🇬 Singapore |
| Personal Income Tax |
0% |
0-24% progressive |
| Capital Gains Tax |
0% |
0% |
| Dividend Tax |
0% |
0% |
| Interest Income Tax |
0% |
0% |
| Corporate Tax |
9% (above AED 375k) |
17% |
| VAT/GST |
5% |
9% |
| Inheritance Tax |
0% |
0% |
| Wealth Tax |
0% |
0% |
| Social Contributions |
0% for expats |
CPF (citizens/PRs only) |
Singapore Tax Brackets (2024/25)
While UAE has no income tax, Singapore uses progressive rates:
| Income Band (SGD) |
Rate |
| $0 - $20,000 | 0% |
| $20,001 - $30,000 | 2% |
| $30,001 - $40,000 | 3.5% |
| $40,001 - $80,000 | 7% |
| $80,001 - $120,000 | 11.5% |
| $120,001 - $160,000 | 15% |
| $160,001 - $200,000 | 18% |
| $200,001 - $240,000 | 19% |
| $240,001 - $280,000 | 19.5% |
| $280,001 - $320,000 | 20% |
| $320,001 - $500,000 | 22% |
| $500,001 - $1,000,000 | 23% |
| Over $1,000,000 | 24% |
Even Singapore's top rate of 24% is low by global standards, but it's still infinitely more than UAE's 0%.
Who Wins at Different Scenarios?
High-Earning Employee ($200k+)
Winner: UAE 🇦🇪
At $200k salary, you'd pay $0 tax in UAE vs ~$35,000 in Singapore. That's $35k more in your pocket every year. Over 5 years, that's $175,000 saved. The tax savings are massive and clear-cut.
Entrepreneur / Business Owner
Winner: UAE 🇦🇪 (with caveats)
UAE free zones offer 0% corporate tax and simpler setup. However, if you need sophisticated banking, investor access, or IP protection, Singapore's infrastructure is superior despite the 17% corporate rate.
Investor / Passive Income
Winner: Tie - Both Excellent
Neither taxes capital gains, dividends, or interest income. Both are ideal for investors. Choose based on lifestyle, banking needs, and personal preference rather than tax.
Family with Children
Winner: Singapore 🇸🇬
Singapore's world-class education system, safety, and family-friendly environment often outweigh UAE's tax advantages. International school costs are similar in both, but Singapore's public education is excellent.
Remote Worker / Digital Nomad
Winner: UAE 🇦🇪
UAE offers multiple visa options for remote workers (freelancer visa, virtual working program) with 0% tax. Singapore's visas are harder to obtain for pure remote workers without a local employer or business.
The Bottom Line
- Pure tax optimization: UAE wins hands-down with 0% income tax
- Business sophistication: Singapore offers superior legal and financial infrastructure
- Lifestyle: Very different - desert luxury vs. tropical city-state
- Long-term planning: Singapore offers clearer path to permanent residency
Cost of Living Comparison
Tax is only part of the equation. Here's how living costs compare:
| Expense |
🇦🇪 Dubai |
🇸🇬 Singapore |
| Rent (2BR City Center) |
~$3,000-4,500/month |
~$3,500-5,000/month |
| International School |
~$15,000-30,000/year |
~$20,000-40,000/year |
| Healthcare |
~$3,000-5,000/year (insurance) |
~$2,000-4,000/year (expat plans) |
| Car Ownership |
Very affordable |
Extremely expensive (COE) |
| Groceries |
~$500-700/month |
~$400-600/month |
| Dining Out |
~$15-40/meal |
~$5-30/meal (hawker to restaurant) |
Both are expensive cities, but the tax savings in UAE often more than compensate for any cost of living differences, especially at higher incomes.
Tax Savings Calculator
Here's how much you'd save annually by choosing UAE over Singapore:
| Annual Salary |
Singapore Tax |
UAE Tax |
Annual Savings |
| $75,000 |
~$5,500 |
$0 |
+$5,500 |
| $100,000 |
~$9,000 |
$0 |
+$9,000 |
| $150,000 |
~$18,000 |
$0 |
+$18,000 |
| $200,000 |
~$28,000 |
$0 |
+$28,000 |
| $500,000 |
~$95,000 |
$0 |
+$95,000 |
Over a 5-year stint, a $200k earner would save ~$140,000 by choosing UAE over Singapore. That's life-changing money.
Calculate Your Exact Tax
See Your Personal Take-Home Pay
Use our free calculators to see exactly how much you'd keep in each location with your actual salary.
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