Dubai vs London, Lisbon and Miami: where your money goes further
“Is Dubai cheaper than London?” is the wrong question, because price alone tells you almost nothing. What matters is where the same money buys the most useful mix of entry cost, income, tax efficiency, liquidity and lifestyle. Set Dubai beside London, Lisbon and Miami on all of those at once and the picture is not “one winner” — it is four cities that each win on something. Here is the honest comparison, without the home bias.
How to compare fairly
Price per square metre is only the first line. Add the cost of buying (transfer taxes and fees, which range from tiny to punitive), the gross rental yield, the tax you pay annually to own, the tax on the gain when you sell, how easily you can exit, and the currency the asset sits in. Then weigh the softer things a home also buys — residency, access to a market or a bloc, and lifestyle. A city can look cheap on price and expensive once tax and transaction costs are counted, or the reverse. The only honest way to compare Dubai with anywhere is to line all of these up together.
Dubai
Dubai’s case is income and tax efficiency. Entry prices are moderate — well below prime London or central Miami — while gross rental yields are typically higher, around 6-7 percent. There is a one-off transfer cost of about 4 percent, but no annual property tax, no capital-gains tax and no tax on rent. Foreigners own freehold, the market is liquid, and ownership can carry a residence visa. The dirham’s dollar peg means you are holding a dollar asset. The trade-off is a cyclical market that can move quickly in both directions — the price of a young, fast-growing city.
London
London is prestige, stability and depth — at a price. Entry costs are among the highest of the four, gross yields are low (often 3-4 percent), and the cost of buying is heavy: stamp duty rises in bands and non-residents and additional-property buyers pay surcharges that can push the total well into double digits. There is council tax to own, income tax on rent and capital-gains tax on the sale, even for non-residents. What you get for all that is a deep, liquid, globally-trusted market and a stable legal system. It is a capital-preservation city, not a yield city.
Lisbon
Lisbon offers Europe, lifestyle and a middle path on cost. Entry prices are moderate and yields sit around 4-5 percent. Buying carries a transfer tax (IMT) that scales up with price plus stamp duty and fees, and ownership brings an annual municipal tax (IMI) and capital-gains tax on sale. The tax incentives that once drew foreign buyers have been scaled back, so the pitch now is EU access, climate and quality of life rather than a tax break. For a buyer who wants a foothold in the European Union with real rental demand, it is a genuine contender.
Miami
Miami is US access, sunshine and decent yield — with a tax sting that surprises newcomers. Entry is moderate-to-high, yields are reasonable at roughly 4-6 percent, and buying costs are relatively light. But Florida levies an annual property tax of around 2 percent of value every year — a recurring cost Dubai simply does not have — and US federal tax applies to rental income and gains, with insurance costs rising as climate risk is repriced. In return you get a liquid market, a foothold in the United States and strong long-run demand. The annual property-tax line is the number a Dubai buyer notices most.
The four, side by side
| City | Entry | Gross yield | Annual property tax | Tax on the gain |
|---|---|---|---|---|
| Dubai | Moderate | ~6-7% | None | None |
| London | Very high | ~3-4% | Council tax | Yes (CGT) |
| Lisbon | Moderate | ~4-5% | IMI | Yes (CGT) |
| Miami | Moderate-high | ~4-6% | ~2% a year | Yes (US tax) |
Indicative and simplified; entry prices, yields and tax rules change and depend on the specific property and your residency. Buying costs (stamp duty, transfer taxes, fees) also vary widely — confirm current figures for each market before comparing.
The honest verdict
On the pure numbers a non-resident investor tends to care about — entry cost, yield, and how little of the return the taxman takes each year and on exit — Dubai is hard to beat, and that is precisely why so much global capital has flowed here. But “goes further” is not the same as “best for everyone.” London buys prestige, a deep market and stability that Dubai’s youth cannot yet match. Lisbon buys a foot in the European Union and a certain quality of life. Miami buys a US foothold and long-run growth, if you accept the annual tax and insurance. The right city is the one whose particular strength matches what you actually want the property to do — income, diversification, residency or a base — not the one with the lowest sticker or the highest yield in isolation.
Frequently asked
Questions, answered
Is Dubai property cheaper than London?
Usually, on entry price — often far below prime London — and it also carries lower buying taxes, no annual property tax and higher yields. London offers deeper liquidity, prestige and stability, but at a much higher tax and entry cost.
Which city has the best rental yield: Dubai, London, Lisbon or Miami?
Dubai typically leads on gross yield at around 6-7%, ahead of Miami (~4-6%), Lisbon (~4-5%) and London (~3-4%). But net yield depends heavily on each city's annual and transaction taxes, which Dubai keeps the lowest of the four.
Where do foreigners pay the least property tax?
Of the four, Dubai — no annual property tax and no capital-gains tax, just a roughly 4% one-off transfer fee. Miami's ~2% annual property tax, and London's and Lisbon's ownership and capital-gains taxes, are materially heavier.
Which is the best city to buy investment property?
There is no single answer. Dubai wins on yield and tax efficiency, London on prestige and liquidity, Lisbon on EU access and lifestyle, Miami on US access and growth. The best city is the one whose particular strength matches your goal.