Working remotely is not a new thing. However, since the pandemic, working remotely has been the dream for many for various reasons.
Dubai and Portugal are among top destinations for digital nomads.
But which one is better for you?
Let’s break down the key differences to help you decide.
Related: The Dubai Digital Nomad Visa – How To Apply For The Dubai Remote Visa
Dubai’s Digital Nomad Visa (Freelance Visa)
Pros:
- Tax-Free Income (in most cases): As a freelancer, your income is not taxed.
- Modern Infrastructure: World-class internet, transportation, and amenities.
- Global Connectivity: Excellent flight connections to the rest of the world.
- Luxury Lifestyle: Access to high-end dining, shopping, and entertainment.
- Business Opportunities: A thriving economy of digital nomads, and entrepreneurs, and numerous networking events.
- Safety: Dubai has one of the lowest crime rates in the world.
Cons:
- High Cost of Living: Rent, especially in popular areas like Marina or Dubai downtown, is not a joke (Can be really expensive). Also, groceries and entertainment can be expensive.
- Climate: It can get extremely hot especially during the months of June, and July.
- Cultural Differences: One needs to understand the laws of Dubai and UAE, noting that it is an Islamic state. However, Dubai is a multi-cultural city with more than 80% of its population made up of foreigners.
- Healthcare costs: Health insurance is mandatory, and some plans can be expensive. However, they do have affordable medical coverage plans.
Eligibility Criteria (varies slightly depending on specific free zone):
- Proof of freelance/remote work.
- Valid passport.
- Health insurance.
- Proof of sufficient income ($3,500 per month)
Benefits:
- You get a residency permit.
- Access to local services.
- Opportunity to network with other professionals.
- Opportunity to open local bank accounts.
Note that there is a difference between a freelance visa and having a business based in Dubai as a sole proprietorship.
When it comes to having a business, whether a sole proprietorship or others, check out this article on how to open a business in Dubai.
Portugal’s Digital Nomad Visa (D8 Visa)
Pros:
- Lower Cost of Living compared to Dubai: Basic amenities such as food, rent, and transport is much more affordable compared to Dubai.
- Easy Access to other countries in the EU: With the Schengen visa, you are able to freely travel to quite a number of European nations.
- Rich Culture and History: In Portugal, you have access to historical cities and beautiful landscapes. And this is not to say that Dubai does not have a rich culture and history, far from it.
- Pleasant Climate: Mild winters and warm summers, much more balanced than Dubai. Cities like Lisbon have what may be termed as perfect weather.
- Relatively Simple Application: Less complex than some other visa programs.
- Option for residency and citizenship: Once you stay for 5 years as a digital nomad, you can apply for permanent residency. Once you have been in Portugal for another 5 years, you can apply for citizenship.
Cons:
- Taxes: You will be taxed on the income you make in Portugal, although there are potential tax benefits through the Non-Habitual Resident (NHR) regime.
- Bureaucracy: Can be slow and complex at times.
- Lower Average Income: Compared to Dubai, salaries and freelance rates may be lower.
- Internet Speed: While improving, it may not be as consistently fast as in Dubai in all areas.
Eligibility Criteria:
- Proof of remote work/freelance income from outside Portugal.
- Proof of a stable monthly income (around €3,280/month in 2024).
- Proof of bank savings amounting to €9,840.
- Valid passport.
- Clean criminal record.
Benefits:
- Residency permit.
- Access to public services (healthcare, education).
- Potential for NHR tax benefits.
- Pathway to Portuguese citizenship.
- Schengen area travel.
Prices:
- Application fees: Around €180.
- Visa fee: Around €75.
- Other costs: NIF, bank account, rental deposit, etc.
Key Differences at a Glance:
- Taxation: Dubai offers tax-free income (in most cases), while Portugal taxes income.
- Cost of Living: Portugal is generally more affordable than Dubai.
- Lifestyle: Dubai offers a luxurious, modern experience, while Portugal provides a culturally rich, relaxed lifestyle.
- Bureaucracy: Dubai’s processes can be more streamlined, while Portugal’s can be slower.
- EU Access: Portugal provides access to the Schengen Area, while Dubai does not.
- Climate: Dubai has a very hot climate, while Portugal has a temperate climate.
Which One is Right for You?
- Choose Dubai if: You prioritize tax-free income, a luxury lifestyle, and excellent infrastructure.
- Choose Portugal if: You value a lower cost of living, rich culture, EU access, and a pathway to citizenship.
