UAE's Golden Visa: A Dream Come True or a Costly Mistake?
The UAE's new lifetime Golden Visa is attracting high-income Indians and global earners. However, the high cost of living in Dubai may offset the tax benefits.
UaeGolden VisaDubaiCost Of LivingTax BenefitsReal EstateJul 08, 2025
Under the new nomination-based visa scheme, Indian and Bangladeshi citizens can now apply for lifetime residency in the UAE without needing to invest in real estate or secure local sponsorship. The entry point is a one-time fee of Rs 23.3 lakh. But according to an experienced traveller known online as “Backpacking Daku”, this initial cost may be just the beginning of significant long-term expenses.
Don’t Ignore Dubai’s High Cost of Living
In a widely shared post on social media platform X, “Backpacking Daku” broke down the estimated monthly expenses of living in Dubai:
- Single person (1BHK, car, rent outside city centre): Rs 2.81 lakh/month
- Couple: Rs 3.94 lakh/month
- Couple with 2 children (including school fees): Rs 4.97 lakh/month
These figures include day-to-day essentials like rent, transport, occasional eating out, and basic shopping. However, they exclude critical costs such as healthcare, insurance, parking, or domestic help.
“This is a golden visa only if you have golden pockets,” one follower commented on the thread. The figures align with crowd-sourced data platforms such as Numbeo and Expatistan, which highlight that Dubai is over 160 per cent costlier than Bengaluru for non-rent expenses and has rents that are over 550 per cent higher.
What is the UAE’s New Golden Visa?
The new golden visa scheme is a significant departure from the previous AED 2 million (Rs 4.66 crore) real estate investment requirement. Now, residency for life can be obtained via nomination based on a candidate’s contribution to sectors like trade, finance, culture, science, and startups.
The visa, currently in a pilot phase for Indian and Bangladeshi nationals, is being processed through Rayad Group in partnership with VFS Global’s Education, Trade & Migration Services. Applications can be submitted via online and physical centres. The review timeline ranges from 2 to 4 weeks, depending on the applicant’s qualifications.
Approved individuals can:
- Sponsor family members and staff
- Retain residency despite staying abroad
- Access full UAE tax benefits (0% income, capital gains, inheritance taxes)
- Own businesses with 100% mainland rights
- Stay posthumously through family sponsorship
Is it Worth It?
Tax-free income, business ownership, and long-term stability make the visa attractive for high-income Indians and global earners. However, financial advisors point out that those without a strong foreign income or company backing may find the lifestyle costs unsustainable over the long term.
According to Rayad Group’s official website, the visa provides a 10-year renewable residency with lifetime access if not revoked. Unlike property-tied visas that lapse upon sale, this model offers permanence and freedom from investment-linked conditions.
But as “Backpacking Daku” warns, “Rs 23 lakh is just the price of entry. You still have to afford to live in Dubai.”
While the UAE’s golden visa programme opens a significant door for wealthy professionals, entrepreneurs, and digital nomads, the actual cost of relocating is far higher than the application fee. Analysts suggest personal financial planning, sectoral relevance, and lifestyle adaptability must be carefully assessed before making the move.
Frequently Asked Questions
What is the one-time fee for the UAE Golden Visa?
The one-time fee for the UAE Golden Visa is Rs 23.3 lakh.
Who can apply for the UAE Golden Visa?
Indian and Bangladeshi citizens can apply for the UAE Golden Visa without needing to invest in real estate or secure local sponsorship.
What are the monthly living costs in Dubai?
The estimated monthly living costs in Dubai are Rs 2.81 lakh for a single person, Rs 3.94 lakh for a couple, and Rs 4.97 lakh for a couple with two children (including school fees).
What are the benefits of the UAE Golden Visa?
The benefits include tax-free income, business ownership, long-term stability, and the ability to sponsor family members and staff.
What are the hidden costs of living in Dubai?
Hidden costs include healthcare, insurance, parking, and domestic help, which are not included in the basic living expenses.
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