FOR years Dubai has sold itself as a beacon of stability and security in a region otherwise plagued by chaos.
But with missiles and drones raining down on its beaches and expats ordered to disguise the scale of the impact, it’s a reputation now in jeopardy. Now, as experts warn Brits could turn elsewhere in the search for a sun-soaked expat life, we reveal the other hotspots where taxes are low and – unlike the desert nation – you can grab a beer for pennies.
Dubai had long cultivated an image of safety, a “Switzerland of the Middle East”.
For years, it worked – attracting investment and growth that transformed it into a global hub of business and tourism.
It’s a model that other cities and countries around have long sought to model.
Some of those are also in the Middle East – cities such as Bahrain, or Doha in Qatar – but find themselves equally at risk from the outbreak of war in the region.
Just yesterday, Iran issued further threats to strike “economic centres” across the region, heightening fears that Dubai remains a target.
Meanwhile, Brits like Kate Ferdinand have been left begging to get back to the UK.
The videos of explosions lighting up the sky while air raid sirens wail in the background are a stark contrast to the picture-perfect image of the city usually seen on social media.
Dubai is a resilient city, and has weathered shocks before.
But for mobile expats and digital nomads, there’s little doubt its safe-haven status will remain tarnished even if hostilities calm down – and sometimes, safety is paramount.
“What happened over the weekend has dented confidence in Dubai as a stable expat destination,” says Paul Correa, founder of Advice for Expats.
“Over time, the confidence will be restored, but it will have a knock-on effect.
“I think people will think twice before considering Dubai.”
Dr Jim Krane, a Middle East expert at Rice University’s Baker Institute for Public Policy, echoes this.
“The safety and security advantage has evaporated,” he says.
“What’s hit Dubai is quite symbolic. Places like Riyadh in Saudi Arabia and Doha in Qatar have been vying for the same business, but they’re under the same threats that Dubai is right now.”
Jim remains confident that Dubai can stay on top in the long run – but for plenty of Brits right now, it’s no longer an option.
So where around the world might be looking to attract the talent that could leave Dubai?
Panama
With its favourable tax system and luxury high-rise apartments, the sun-soaked Central American nation has built a reputation for being a “tropical Dubai” and is increasingly popular with Brits.
Looking at what’s on offer, it’s easy to see why Panama has been voted the best place for expats to live two years in a row by global expat network InterNations.
It boasts year-round 30C weather, miles of beautiful beaches, as well as stunning countryside – and pints as cheap as 25p.
But it’s not just attracting backpackers.
A number of international companies have their regional offices in the country, including food companies Nestle and Mars, Adidas, and car manufacturers Hyundai.
Also in demand are jobs in tourism, banking, and teaching.
The biggest incentive for Brits is the tax system, which is hugely beneficial for those seeking the “digital nomad” life.
So long as certain conditions are met, people working remotely for a foreign business do not have to pay any tax on income earned abroad.
On top of that, a low cost of living means money goes a lot further – with one-bed apartments in central areas going for around £715 a month.
Malta
Set in the middle of the glittering Mediterranean sea, the island nation of Malta is working hard to attract Brits looking for a combination of sunshine and low taxes.
It already boasts a strong expat community, with more than 15,000 Brits able to call the country’s capital of Valletta home.
There are also a lot of cultural similarities to the UK, thanks to the fact that Malta was once a part of the British Empire – including driving on the left, English being widely spoken, and even red post boxes.
But what really sets it apart from other places in the Mediterranean is its generous tax regime.
“There’s no wealth tax, no inheritance tax, and capital gain on property come in at 8 to 12 per cent,” explains Paul.
“The headline corporate tax for non-residents, once refunds kick in, is around 10 per cent.
“In addition to that, since the first of January, they have started to offer a new special tax regime for highly skilled professionals where you pay a flat rate of tax on income of just 15 per cent.
As a bonus, any income earned in the UK is completely tax-free.
Meanwhile, living costs are also low – estimated to be around £600 before rent for a single person.
One-beds in the centre of the capital Valletta come in at around £879 per month, and pints average just £3.40.
“It offers the lifestyle, and it offers security,” says Paul. “The downside of Malta is that it’s in the middle of the Mediterranean, far away from any other location – so it’s not the most easily accessible place.”
Sri Lanka
The island nation of Sri Lanka has made moves to position itself as an alternative to Dubai – helped along by the construction of a massive new city reclaimed from the sea.
Off the coast of its capital, Colombo, a massive expanse of sand is set to become home to a high-tech financial center, residential area and marina.
It’s prompted plenty of comparisons to Dubai, which itself is no stranger to reclaiming land from the sea.
But they’ll want to hurry up construction if they plan on making the most of the present moment – with construction set to last for decades.
However, the rest of Sri Lanka still has plenty to offer – with a low cost of living, tropical climate, and a digital nomad visa launched just last month.
Money goes far too. The rent for one-bed apartments in the city of Colombo can range from around £329 to £620 a month, according to Sri Lankan construction company Unicon.
Outside of the city, the southern coast is extremely popular with expats after the beach lifestyle, and towns like Weligama and Hiriketiya have strong international communities.
Here, prices are even cheaper, and whole villas can be rented for between £250 and £750 a month, according to Unicon.
Gibraltar
Another option, again with a Mediterranean climate and a close connection to the UK, is Gibraltar.
“It is quite below the radar, but it is attracting thousands of applications from British nationals,” says Paul.
Though already popular with Brit tourists, it also offers an attractive tax system to anyone willing to make it their home.
There’s no capital gains tax, no VAT, no wealth tax, nor any inheritance tax – and any income is taxed at a maximum of 25 per cent.
“It offers the lifestyle, and a very attractive fiscal regime,” Paul adds.
Like Dubai, crime is low, while it’s also home to plenty of high street shops and businesses that Brits would recognise – only this time in a place with more than 300 days of sunshine a year.
Greece
When it comes to good weather, few places are better than the eastern Mediterranean country of Greece.
It’s unlikely that we’ll see Dubai-style skyscrapers coming to Greece any time soon.
But its tax perks, unrivaled lifestyle, and the option of settling in either cities like Athens or on islands like Corfu, could make it an attractive option for those looking beyond the Middle East – especially if people are looking for long-term options.
“It’s not the most tax efficient destination,” Paul warns. “But it has a golden visa route, which eventually after seven years can lead to citizenship.”
Living costs in Greece also tend to be lower than the UK, with the price of a pint coming in around £4.30.
Monthly outgoings before rent are currently around the £674 mark if you’re living on your own – but one drawback is that like the UK, the country is currently in the midst of a cost of living crisis.
However, it is sure to remain a draw for those swapping the Middle East for a slower pace of life.
