Spain or Dubai? Living vs. Investing – What Suits You Best?

Why Spain is ideal for retirees – and why Dubai is the future for property investors

When thinking about your future—whether you're planning for a relaxed retirement or a smart real estate investment—Spain and Dubai are two sun-drenched destinations that often top the list. But these two locations serve very different purposes. In this blog, we compare both options: Spain for retirees, and Dubai for building long-term wealth through real estate.

Why Spain Is Perfect for Retirement

For those who have worked their whole lives and long for peace, sunshine, and lower living costs, Spain is an excellent choice. Not because of tax advantages—those are virtually gone—but because of its affordability and quality of life.

Low Cost of Living

A recent trip to Málaga confirmed it once again: supermarket prices there are nearly 50% lower than in the Netherlands. Combine that with a sunny climate and a laid-back lifestyle, and it’s no surprise that Spain is a top choice for retirees.

Tax Pressure on Pension Income

Comparison based on a gross annual pension income of €70,000 (excluding allowances and deductions):
🇳🇱 Netherlands: €18,726 in income tax
🇪🇸 Spain: €22,401 in income tax (regional surcharges not included)
👉 Conclusion: Spain is actually slightly more expensive than the Netherlands in this regard.

Rental Income: Barely Profitable

Planning to rent out a property in Spain? Be prepared for limitations:
★ Rental licenses are rarely granted in apartment buildings
★ You’ll often need approval from the owners’ association (majority vote required)
★ As a non-resident, you pay 19% tax on rental income (24% if you're outside the EU)

👉 Conclusion: Spain is perfect for living, but not suitable for large-scale property investment or passive income. The climate and daily costs are far more affordable, but the real estate market is not investor-friendly.

Why Dubai Is the Future for Real Estate Investors

Dubai has rapidly developed into the epicentre of wealth creation and real estate investing. And the best part? You don’t need to live there—remote investing is fully supported.

No Income Tax, No Wealth Tax

For High Net Worth Individuals (HNWIs) looking to protect and grow their wealth, Dubai’s Golden Visa program offers an ideal solution. Unlike Europe, Dubai imposes 0% tax on income and assets.

✅ Quality of Life & Affordable Living

Contrary to popular belief, everyday living in Dubai is surprisingly affordable:

★ Supermarket prices are similar to the Netherlands, but with a broader range of fresh and international products
★ Dining out costs about the same as in the Netherlands, but quality is far higher – personally number one alongside London
★ Top chefs from around the world choose Dubai for the high living standards and tax-free salaries, which can be double what they earn in Europe
★ No staff shortages = consistently top-level, friendly service
★ Taxis are 70% cheaper, car rentals are a bargain, and petrol costs around €0.70 per litre

World-Class Property at Half the Price

New builds in Dubai are up to 50% cheaper than comparable developments in the Netherlands—and offer far more value:

★ Always includes private parking
★ Kitchens and bathrooms of the highest quality—complete with premium German appliances
★ Fully furnished delivery, with custom design by interior stylists
★ Luxury facilities: swimming pools, gyms, yoga decks, wellness areas, lounges, co-working spaces, cinema rooms, game lounges, and kids' play zones
★ Smart technology: AI integration, facial recognition for access, and license plate recognition at gates

From personal experience, the quality is exceptionally high. One developer that stands out is SOBHA—arguably the most reliable in Dubai—renowned for flawless handovers under German quality supervision.

They're also leading the way in AI-driven construction, accelerating timelines and improving sustainability, design, and material quality with each project.

Short-Term Rentals at 5-Star Level

Dubai welcomes over 25 million tourists annually. Hotel capacity can’t keep up with demand—which creates a massive opportunity for private holiday rentals via platforms like Airbnb, Booking.com, Expedia and Bayut.

At LXRY Properties, you invest in a home that competes with five-star hotels, but with higher returns and more flexibility.

Think:
★ Fully styled and furnished in 24 hours
★ Professional property management, including 24/7 cleaning and check-in services
★ Marketing & visibility across all major platforms: Airbnb, Booking, Expedia, Bayut
★ 24-hour hospitality teams—hundreds of staff in rotating shifts provide continuous guest care and linen services

Dubai: Efficiency, Stability & Global Independence

Dubai offers another key advantage: unmatched efficiency and political stability.

The UAE government is action-oriented and highly strategic. English is the official language for business, so communication is seamless. Unlike many Western countries, Dubai is not paralysed by excessive regulations. Decision-making is fast, transparent, and result-driven.

Infrastructure is world-class and continuously evolving:
New metro lines, high-speed roads, smart airports and logistics hubs are emerging rapidly—all self-funded by the Emirates, with no external debt.

Politically, Dubai plays on the global stage. It maintains strong ties with the United States, recently joined BRICS, is not subject to any sanctions, and is considered a stable, trustworthy partner by countries worldwide.

It says a lot that developers from the UAE are now building data centres in the United States—and the Emirates have become major investors in the American tech economy.

Invest where the government has the resources and vision to continually improve infrastructure and plan strategically for the future. When the world’s top hotel brands start establishing themselves there, you know a location has real long-term value.

Conclusion: Spain to live, Dubai to invest

If you're retiring and seeking comfort, sunshine and low monthly expenses, Spain is an excellent place to live.
If you're looking to grow your wealth, invest at scale and secure future-proof rental income, then Dubai is the place to be.

At LXRY Properties, we don’t just help you choose the right destination—we support you through every stage of the journey: from acquisition to furnishing, rental setup and full-service property management.

We build long-term partnerships based on trust, expertise and results.

👉 Want to learn more about our services?