UAE ranks third in the world for lifestyle in 2026, and tops every country on tax

Dubai: The UAE is among the world's top destinations for living, working, and investing. It outperforms 63 other global destinations in taxation, and is only 0.74 points away from the top spot in the Nomad Capitalist 2026 index. The UAE ranked third globally in the Nomad Capitalist Lifestyle Index 2026, which included 63 destinations, scoring 73.15 out of 100 points. This confirms its position among the world's leading destinations for living, working, and investing, benefiting from its superior tax environment, advanced residency and accessibility, quality of life, and infrastructure. Monaco topped the ranking with 73.89 points, followed by Andorra with 73.68 points, while the UAE came in third, just 0.74 points behind first place. Malta ranked fourth with 72.11 points, and Portugal fifth with 70.09 points. The UAE distinguished itself by outperforming all 63 destinations in the tax criterion, achieving 96 points. It was also the only Gulf state included in the index, which was prepared by Nomad Capitalist in collaboration with Bridgehead Communications, based on five equally weighted criteria. However, the index does not measure tax advantages alone; the index distributes weight equally across five pillars to provide a more comprehensive assessment of lifestyle, encompassing climate, safety, freedom of movement, quality of services, and infrastructure. The evaluation criteria include nature and climate, taxes, residency and accessibility, safety and freedom, quality of life, and infrastructure, with each pillar representing 20% of the overall score. The UAE scored 78.7 points in residency and accessibility, 72.6 points in quality of life and infrastructure, 59.7 points in nature and climate, and 58.8 points in safety and freedom. This ranking reflects the UAE's strong performance in attracting individuals, entrepreneurs, and investors, particularly given the increasing importance of the tax environment, residency procedures, and infrastructure when choosing a destination to live and conduct business. The ranking also highlights the country's ability to compete with established global destinations such as Monaco, Andorra, Switzerland, and Singapore. The UAE achieved the highest tax rating in the index, with 96 points, surpassing all other destinations. This reflects the attractiveness of the tax system for individuals, given the absence of personal income tax, along with a residency and business environment that offers multiple options for investors, entrepreneurs, and professionals. In the residency and accessibility criterion, the UAE scored 78.7 points, placing it among the leading destinations in this area. Its score for quality of life and infrastructure was 72.6 points, highlighting the importance of integrating living and working conditions to enhance the appeal for individuals seeking to combine residency with business operations. The index results reveal a clear convergence among the top three destinations; the difference between Monaco, the leader, and the UAE did not exceed 0.74 points, reflecting a balanced performance across all criteria, rather than simply superiority in one area. The ranking positions the UAE among the top three global destinations for lifestyle in 2026, reinforcing its presence in the international competition to attract talent, investments, and individuals with cross-border activities.