Moving to the UAE from Pakistan

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 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 corporate tax applies at 0% on taxable income up to AED 375,000 and 9% on income above that threshold ^[1]. This applies to businesses and individuals conducting business activities under a commercial licence, not to salaried employees.

VAT.

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

Pakistan tax obligations.

Pakistan taxes its residents on worldwide income. When you move to the UAE and become a non-resident for Pakistani tax purposes, you are only taxed on Pakistan-source income. The Federal Board of Revenue (FBR) defines residency based on the number of days spent in Pakistan during the tax year. If you establish non-resident status under Pakistani tax rules, your UAE salary is not taxable in Pakistan. However, any rental income, capital gains from Pakistani property, or business income sourced in Pakistan remains taxable regardless of where you live. File your final resident return before departure and update your status with the FBR.

Remittances.

Pakistan does not tax inward remittances from abroad. Money you send home from your UAE salary is received without deduction. Pakistan's State Bank encourages formal banking channels for remittances, and authorized exchange companies in the UAE (Al Ansari Exchange, UAE Exchange, and others) offer competitive rates for PKR transfers.

End-of-service gratuity.

UAE labour law entitles employees who complete at least one year of continuous service to an end-of-service gratuity ^[3]. The calculation follows UAE labour law provisions for end-of-service benefits, subject to the terms in the employment contract ^[3]. This payment is not taxed in the UAE.

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 the residence permits of 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 health insurance package covers inpatient and outpatient care, maternity, emergency treatment, and prescription medications. Co-payment rates vary by plan, but the basic package typically includes 20% co-payment for inpatient care and 25% for outpatient visits ^[1]. Most employers provide coverage above the minimum, especially for professional roles.

Pakistani medical records.

Bring your vaccination records and a summary of any ongoing treatments. If you take prescription medication regularly, carry a letter from your Pakistani doctor with the generic drug names (International Nonproprietary Names) and dosages. Most medications available in Pakistan are also available in UAE pharmacies, though brand names may differ.

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. Results typically take a few days and are processed through authorized health centres.

Dental and optical.

Basic employer-sponsored plans often exclude dental and optical coverage. If you need these services regularly, ask your employer about enhanced plans or budget for out-of-pocket costs. Private dental care in the UAE is significantly more expensive than in Pakistan.

Visa and Work Permit Pathways

Pakistani nationals require a pre-arranged visa to enter the UAE for work or residency ^[1]. Tourist visas are available but do not permit employment. The standard path for Pakistani workers is an employer-sponsored work visa, where the company handles the entry permit, work permit, and residence visa process ^[2].

Standard employment visa.

The employer applies for a work permit through the Ministry of Human Resources and Emiratisation (MOHRE) ^[2]. The process requires a valid job offer, the employer's trade licence, and the employee's passport with at least six months validity. The standard work visa is valid for two years and renewable ^[3]. The employer bears the cost of the work permit and visa processing ^[2].

Entry permit and status change.

Once MOHRE approves the work permit, the employer arranges an entry permit for the worker ^[2]. After arriving in the UAE, the employee must complete a medical fitness test, obtain an Emirates ID card, and have the residence visa stamped in their passport ^[4]. The entire process from entry to residence visa issuance typically takes a few weeks.

Golden Visa.

The UAE Golden Visa offers long-term residence (5 or 10 years) without requiring an employer sponsor ^[5]. Categories include investors (minimum AED 2 million in property or business), specialized professionals (doctors, scientists, engineers, executives), entrepreneurs, and outstanding students ^[5]. Pakistani professionals in technology, medicine, and engineering fields have been qualifying through the specialized 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 freelancing permit from MOHRE, have at least a bachelor's degree, and demonstrate sufficient annual income over the previous two years ^[6].

Domestic worker visa.

Pakistani domestic workers entering the UAE need a visa sponsored by a UAE resident household. The sponsor must meet minimum salary requirements and provide accommodation. MOHRE regulates domestic worker contracts and has established standard employment terms.

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 from this restriction and can stay abroad for extended periods without losing their status ^[5].

Banking and Finances

Opening a UAE bank account.

You can open a bank account once you have your Emirates ID and residence visa. Most banks require your passport, Emirates ID, residence visa copy, salary certificate from your employer, and a utility bill or tenancy contract as proof of address. Major banks including Emirates NBD, ADCB, Mashreq, and FAB serve Pakistani expats widely.

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 open a salary account at a partner bank if you do not already have one. Salaries must be paid by the 15th day after the due date, or the employer faces penalties.

Remittance to Pakistan.

The UAE has a well-established remittance infrastructure for Pakistan-bound transfers. Exchange houses regulated by the Central Bank of the UAE (Al Ansari, UAE Exchange, Lulu Exchange) handle PKR transfers with same-day or next-day delivery to Pakistani bank accounts, Easypaisa, and JazzCash wallets. Fees are generally low compared to bank wire transfers. Bank wire transfers through Emirates NBD and other banks work but are slower and more expensive. Wise and similar fintech platforms also serve this corridor.

Credit history.

The UAE maintains a credit bureau (Al Etihad Credit Bureau, AECB) that tracks your payment history on loans, credit cards, and utility bills. Building a positive credit history in the UAE helps with future loan and mortgage applications. Your Pakistani credit history does not transfer.

Housing costs and deposits.

Landlords typically require rent paid in advance via post-dated cheques (one to four cheques for the year). A security deposit of 5% of annual rent is standard. On top of rent, budget for DEWA (Dubai Electricity and Water Authority) deposits, internet setup, and municipality fees. Housing is the single largest expense for most Pakistani families in the UAE.

Savings and investments.

With no income tax, your take-home salary is your gross salary. Many Pakistani expats prioritize remittances and savings. UAE banks offer savings accounts in AED and USD. The AED is pegged to the USD at a fixed rate, which reduces currency risk for dollar-denominated savings.

Moving Logistics

What to bring.

Most household items are readily available in the UAE at reasonable prices, so shipping a full container from Pakistan is rarely cost-effective. Bring personal documents (educational certificates with HEC attestation, marriage certificate, birth certificates, police clearance), professional credentials, and any specialized items not easily found in the UAE. Electronics, clothing, and furniture are widely available and often cheaper in the UAE than import costs would suggest.

Document attestation.

Pakistani educational documents need attestation from the Higher Education Commission (HEC), the Ministry of Foreign Affairs in Pakistan, and then the UAE Embassy in Islamabad before they are recognized for employment or professional licensing in the UAE. This process takes several weeks, so start early.

Flights and initial arrival.

Direct flights operate between major Pakistani cities (Karachi, Lahore, Islamabad) and UAE airports (Dubai, Abu Dhabi, Sharjah). Pakistan International Airlines, Emirates, Etihad, flydubai, and Air Arabia serve these routes. Flight time is approximately three hours. Many employers arrange the initial flight and airport pickup for new hires.

Accommodation search.

Most Pakistani expats in Dubai settle in Deira, Al Nahda, International City, or Sharjah (which is a separate emirate but connected to Dubai by road). Abu Dhabi's Mussafah and Mohammed Bin Zayed City areas are popular for Pakistani families. Sharing apartments is common for single workers. Use Dubizzle, Property Finder, or Bayut to search listings.

Driving licence.

Pakistan 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, which includes a theory exam, internal assessments, and a road test through an authorized driving school. The process takes several weeks and costs AED 5,000-7,000 on average.

Mobile and internet.

Etisalat (e&) and du are the two telecom providers. Prepaid and postpaid SIM cards require your Emirates ID. Mobile data and home internet packages are functional but relatively expensive compared to Pakistan. WhatsApp calls work, but some VoIP services are restricted. WhatsApp messaging is unrestricted.

Cultural Adjustment

Language.

Arabic is the official language of the UAE, but English is the primary working language in most business environments, especially in Dubai and Abu Dhabi. Urdu and Hindi are widely spoken in markets, restaurants, and residential areas with large South Asian communities. You can function in daily life with Urdu and English. Learning basic Arabic phrases is helpful for government interactions and adds professional value.

Food and dining.

Pakistani restaurants are abundant across the UAE, particularly in areas with large Pakistani populations. Grocery stores stock Pakistani brands, spices, and staples including basmati rice, lentils, and halal meat. The UAE is a Muslim-majority country, so halal food is the default at virtually all restaurants and supermarkets. Dining out ranges from affordable Pakistani and Indian restaurants to expensive hotel dining.

Religious practice.

The UAE has mosques in every neighborhood and Friday prayers are widely observed. The workweek runs Saturday through Thursday in some sectors, though the federal government and many private companies shifted to a Monday-Friday schedule with a half day on Friday. Ramadan is observed nationally, with adjusted working hours (typically reduced by two hours per day) mandated by MOHRE for the private sector.

Climate.

Summer temperatures (May through September) routinely exceed 45°C with high humidity, especially in coastal cities. Outdoor work during peak summer hours is regulated, and MOHRE enforces a midday work ban for outdoor labourers during the hottest months. Air conditioning is universal indoors. Winters (November through March) are mild and pleasant, with temperatures in the low 20s Celsius.

Community networks.

Pakistani community associations operate in every emirate, organizing cultural events, sports leagues, and religious gatherings. These networks are an immediate social resource after arrival. The Pakistan Association Dubai and similar organizations provide orientation support for new arrivals.

Labour rights awareness.

The UAE has strengthened worker protections in recent years. Employers cannot confiscate passports (a practice that still occurs but is illegal). The Wage Protection System ensures salary payments are tracked electronically ^[1]. Workers can file complaints with MOHRE for contract violations, delayed wages, or workplace safety issues. Know your contract terms and keep copies of all employment documents.

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