Moving to the UAE from Indonesia

Tax and Salary Structure

The UAE does not levy personal income tax on salaried employees. Your employment salary, allowances, and bonuses are received in full without income tax deductions. The UAE introduced a federal corporate tax under Federal Decree-Law No. 47 of 2022, effective for financial years starting on or after 1 June 2023 ^[1]. The rate is 0% on taxable income up to AED 375,000 and 9% above that threshold ^[1]. This applies to businesses operating under a commercial licence, not to salaried workers.

VAT.

The UAE charges a 5% value-added tax on most goods and services ^[2]. Basic food items, healthcare, and education are either zero-rated or exempt. This tax affects your cost of living but is separate from employment income ^[2].

Indonesian tax obligations.

Indonesia taxes its residents on worldwide income. Once you establish non-resident status under Indonesian tax law, you are only taxed on Indonesia-sourced income. Your UAE salary is not subject to Indonesian income tax while you maintain non-resident status. Notify your local tax office (KPP) of your departure and file your final resident tax return. Consult a cross-border tax advisor to confirm your residency transition.

End-of-service gratuity.

UAE labour law entitles employees who complete at least one year of continuous service to an end-of-service gratuity payment ^[3]. The gratuity is calculated based on years of service and basic salary under UAE labour law provisions ^[3]. This payment is not taxed in the UAE.

Remittances to Indonesia.

Money sent from the UAE to Indonesia is not subject to UAE taxation. Indonesia does not tax inward remittances from employment abroad. Licensed exchange houses in the UAE (Al Ansari, UAE Exchange, Lulu Exchange) offer IDR transfers with competitive rates. Bank wire transfers and fintech platforms (Wise, Remitly) also serve this corridor.

Healthcare and Insurance

Health insurance is mandatory for all residents in the UAE. As of 1 January 2025, employers must purchase a health insurance policy as a prerequisite for issuing or renewing residence permits for private sector employees and domestic workers ^[1]. In Abu Dhabi, employers must cover employees and their families (one spouse and up to three children under 18). In Dubai, employers must cover employees, and sponsors must cover resident dependents.

Coverage basics.

The mandatory package covers inpatient and outpatient care, maternity, emergency treatment, and prescription medications. Co-payment rates for the basic package typically include 20% for inpatient care and 25% for outpatient visits ^[1]. Many employers in professional roles provide enhanced coverage.

Medical fitness test.

All residence visa applicants aged 18 and above must undergo a medical fitness test after arriving in the UAE ^[2]. The test screens for communicable diseases including tuberculosis, hepatitis B, and HIV.

Prescription medications.

Bring a letter from your Indonesian doctor listing the generic names (International Nonproprietary Names) and dosages of any medications you take regularly. Most medications available in Indonesia are available in UAE pharmacies under different brand names. Controlled substances require prior approval from the UAE Ministry of Health.

BPJS Kesehatan.

Your Indonesian national health insurance (BPJS Kesehatan) membership can be maintained while you are abroad, but it only covers treatment at Indonesian healthcare facilities. Some Indonesian workers keep their BPJS active for family members remaining in Indonesia and for coverage during home visits.

Visa and Work Permit Pathways

Indonesian nationals require a pre-arranged visa to enter the UAE for employment ^[1]. The standard pathway is an employer-sponsored work visa, where the UAE company handles the entry permit, work permit, and residence visa through the Ministry of Human Resources and Emiratisation (MOHRE) ^[2].

BP2MI processing.

Indonesian migrant workers are regulated by BP2MI (Badan Pelindungan Pekerja Migran Indonesia, the Indonesian Migrant Worker Protection Agency). Before departure, workers must register with BP2MI, complete pre-departure orientation, and obtain placement documentation. This process is mandatory for Indonesian citizens taking employment overseas and provides a layer of contract protection. Verify your recruitment agency is licensed by BP2MI.

Standard employment visa.

The UAE employer applies for a work permit through MOHRE, providing a valid trade licence, the job offer, and the employee's passport (with at least six months validity) ^[2]. The standard work visa is valid for two years and renewable ^[3]. The employer bears visa processing costs ^[2].

Post-arrival process.

After entering the UAE on an entry permit, you must complete a medical fitness test, obtain an Emirates ID card, and have your residence visa stamped ^[4].

Golden Visa.

The UAE Golden Visa provides 5 or 10-year renewable residence without an employer sponsor ^[5]. Categories include investors (minimum AED 2 million in property or business), specialized professionals, entrepreneurs, and outstanding students ^[5]. Indonesian professionals in engineering, IT, and healthcare have been qualifying through the professional talent track.

Green Visa.

The Green Visa provides a 5-year self-sponsored residence permit for skilled workers, freelancers, and self-employed individuals ^[6]. Freelancers must hold a MOHRE-issued freelancing permit and meet qualification and income requirements ^[6].

Domestic worker visa.

Indonesian domestic workers entering the UAE need a visa sponsored by a UAE resident household. MOHRE regulates standard contract terms for domestic workers. BP2MI processes the contract and placement documentation before departure from Indonesia.

180-day rule.

Residence visa holders who remain outside the UAE for more than 180 continuous days will have their visa automatically cancelled ^[4]. Golden Visa holders are exempt ^[5].

Banking and Finances

Opening a UAE bank account.

You can open a bank account once you have your Emirates ID and residence visa. Banks require your passport, Emirates ID, residence visa copy, salary certificate, and proof of address. Major banks including Emirates NBD, ADCB, Mashreq, and FAB serve Indonesian expats.

Salary accounts.

UAE employers pay salaries through the Wage Protection System (WPS), a Central Bank-administered platform that ensures timely payment ^[1]. Your employer will typically arrange a salary account. Salaries must be paid within the contractual due date, and the employer is considered late if payment is not made within 15 days after that date ^[1].

Remittance to Indonesia.

Licensed exchange houses (Al Ansari, UAE Exchange, Lulu Exchange) handle IDR transfers with competitive rates. Bank wire transfers and fintech platforms (Wise, Remitly) also serve the UAE-Indonesia corridor. Compare rates across providers, as exchange rate margins vary significantly for IDR.

BPJS Ketenagakerjaan.

Indonesian workers can voluntarily continue contributing to BPJS Ketenagakerjaan (the Indonesian social security system for workers) while abroad. This maintains eligibility for workplace accident insurance, death benefits, old-age savings, and pension benefits. Your contributions can be made through authorized channels.

Credit history.

The UAE maintains a credit bureau (Al Etihad Credit Bureau, AECB) that tracks your payment history. Your Indonesian credit history does not transfer. Building positive UAE credit history helps with future loan and mortgage applications.

Housing costs.

Rent in Dubai and Abu Dhabi is typically paid via post-dated cheques (one to four per year). Budget for DEWA deposits, internet setup, and municipality fees. Many Indonesian workers share accommodation to reduce costs, particularly in areas like International City, Al Nahda, and Discovery Gardens in Dubai.

Moving Logistics

Pre-departure requirements.

The BP2MI process is mandatory before departure. Register with BP2MI, complete pre-departure orientation, and obtain all placement documentation. Verify your recruitment agency is BP2MI-licensed. Complete all requirements before booking your flight.

What to bring.

Most household items are readily available in the UAE. Bring personal documents (passport, BP2MI documentation, educational certificates legalized by the Indonesian Ministry of Education and the Ministry of Foreign Affairs, police clearance (SKCK), birth certificate), professional credentials, and medications you take regularly.

Document legalization.

Indonesian educational documents must be legalized by the Indonesian Ministry of Education, the Indonesian Ministry of Foreign Affairs, and then attested by the UAE Embassy in Jakarta. Professional qualifications may require additional verification. Start this process early, as the chain of legalization takes several weeks.

Flights.

Direct flights operate between Jakarta and UAE airports (Dubai, Abu Dhabi). Garuda Indonesia, Emirates, Etihad, and Air Arabia serve these routes. Flight time is approximately eight hours. Many employers arrange the initial flight for new hires.

Accommodation search.

Indonesian communities in the UAE tend to concentrate in affordable areas. In Dubai, International City, Al Nahda, and Discovery Gardens are popular. In Abu Dhabi, Mussafah and Mohammed Bin Zayed City areas are common. Use Dubizzle, Property Finder, or Bayut for listings.

Driving licence.

Indonesia is not on the list of countries whose driving licences can be directly exchanged for a UAE licence. You must take the full UAE driving test, including theory and road exams through an authorized driving school.

Mobile and internet.

Etisalat (e&) and du are the two telecom providers. SIM cards require your Emirates ID. Mobile data packages are more expensive than in Indonesia. WhatsApp messaging works without restriction, though some VoIP calling services are limited.

Cultural Adjustment

Language.

Arabic is the official language of the UAE, and English is the primary working language in most business environments. Bahasa Indonesia is less commonly spoken than some other South and Southeast Asian languages in the UAE, so English proficiency is important for daily interactions. Learning basic Arabic phrases helps with government interactions and everyday errands.

Food and dining.

Indonesian restaurants are available in the UAE, particularly in areas with Indonesian communities, though less widespread than South Asian or Filipino dining options. Supermarkets carry some Indonesian products. The UAE is a Muslim-majority country, so halal food is the default at virtually all restaurants and supermarkets, which makes the food transition straightforward for Indonesian Muslims.

Religious practice.

The UAE has mosques in every neighborhood, and Friday prayers are widely observed. Ramadan is observed nationally, with adjusted working hours mandated for the private sector. The Islamic calendar observance is familiar to Indonesian Muslim workers. The UAE also has churches and temples for non-Muslim Indonesian workers.

Climate.

Summer temperatures (May through September) exceed 45°C with high humidity in coastal areas. While Indonesia is tropical, the UAE's extreme dry heat (and coastal humidity) during summer is more intense than most Indonesian cities experience. Air conditioning is universal indoors. Winters (November through March) are mild.

Community networks.

The Indonesian community in the UAE has community organizations, religious groups, and social networks in major emirates. The Indonesian Consulate provides consular services and can assist with labour disputes or emergency situations. Community events, Indonesian independence day celebrations, and religious gatherings provide social connections.

Labour rights.

UAE law prohibits employers from confiscating worker passports. The Wage Protection System ensures salary payments are electronically tracked ^[1]. Workers can file complaints with MOHRE for contract violations or delayed wages. BP2MI and the Indonesian Consulate also assist Indonesian workers with labour disputes. Keep copies of your employment contract, Emirates ID, and all official documents.

Compare United Arab Emirates

Visa guides for United Arab Emirates