Hey guys ...couple of Facts....You pay many Indirect Forms of taxes here in Dubai also the government wants to introduce
VAT in the future. The IMF is advising the UAE on the technicalities of introducing VAT.
To say that Dubai is Tax Free is just not true.
There are also different opinions about the Low Crime rate, one train of thought is that the Government (by way of controlling press and radio) only lets it known what it wants us to know and that the true crime rate is much higher.
There is some credibility in this as Large Villas and Villas in compounds have been targeted, burgled and these were
reported in the press.
In Dubai you do not have a "free economy" with all the checks and balances you have in England. Just take the rent cap decision along with Nakheel offloading apartments at "Fire sale Rental prices". I am against the rent cap as this is then not a "free market" . There are too many variables not taken into account with the rent Cap. For example under the present Law as a land Lord you can only increase Rent by 7% after 2 years however after 2 years I would say that maintenance Fees alone will increase more than this amount ,take into account cost of living increases and we are all ready sliding down the back side of the economic equation.
Good deal for the tenant, not so attractive for the investor.
Given that International City Apartments are on the more affordable side of renting then market Forces should be allowed to eventually dictate what Rent or return you achieve on your investment with out intervention.
Read what Wikipedia has to say for and against
Rent Control here
Rent control laws are frequently used in economics courses as a textbook example of the problems that arise in trying to artificially reduce prices.
SSM Taxes as you will find are alive and thriving when you come to holiday or just eat out in Dubai. All Hotels charge a municipality tax additional to your bill of 10% Most Hotels and places you eat out now throw in a
"Service Charge" of 10% The hired hands though are worked to the bone, get a salary less than 2,000 AED a month thats less than 275 Pounds a month to survive on, many paid less than this in 5 star establishments.
"Every thing That Glitters is not Gold" could also be placed along side "You build it and they will come"