The UAE has ranked third among 63 destinations in Nomad Capitalist’s 2026 Lifestyle Index, behind Monaco and Andorra. The ranking highlights the country’s tax environment, residency options and infrastructure. It is particularly relevant to expatriates, entrepreneurs, investors and professionals considering the UAE as a place to live and work.
- Location: United Arab Emirates
- Organisation: Nomad Capitalist
- Status: 2026 Lifestyle Index published on October 16, 2026
- Who is affected: Residents, expatriates, entrepreneurs and international investors
- Business impact: The ranking highlights the UAE’s tax environment and residency options
- What’s next: The index offers a comparison of destinations based on five lifestyle factors
The UAE has been named the world’s third-best place to live in 2026 in Nomad Capitalist’s Lifestyle Index, which assessed 63 destinations across five categories. Published by the international consultancy, the index gave the UAE an overall score of 73.15 out of 100, placing it behind Monaco and Andorra. The country ranked first for tax, fifth for quality of life and infrastructure, and seventh for residence and access.
The results highlight several factors that may appeal to people considering a move to the UAE, including its tax framework, long-term residency programmes and modern infrastructure. However, the ranking reflects Nomad Capitalist’s assessment methodology rather than a universal measure of the best places to live.
UAE leads the ranking for tax
Tax was the UAE’s strongest category in the 2026 index, with a score of 96 out of 100. This placed the country first among all 63 destinations assessed by Nomad Capitalist.
The UAE does not levy personal income tax. However, it is important to distinguish between personal and business taxation. The country introduced federal corporate tax for financial years beginning on or after June 1, 2023.
Under the current framework, taxable income up to AED 375,000 is subject to a 0% corporate tax rate, while taxable income above that threshold is generally subject to 9%, subject to applicable rules. The UAE also applies 5% value-added tax (VAT) to most taxable goods and services.
These distinctions matter for people comparing countries before relocating or setting up a business. Personal income tax, corporate tax and consumption taxes affect different aspects of financial planning.
How the UAE performed across five categories?
The index assessed destinations using five equally weighted categories: tax, quality of life and infrastructure, residence and access, nature and climate, and safety and freedom.
The UAE scored particularly well in tax, but its results varied across the other categories.
| Category | UAE score | Global rank |
|---|---|---|
| Tax | 96.0 | 1st |
| Quality of life and infrastructure | 72.6 | 5th |
| Residence and access | 78.7 | 7th |
| Nature and climate | 59.7 | 16th |
| Safety and freedom | 58.8 | Not specified in the supplied report |
The UAE’s fifth-place position for quality of life and infrastructure reflects another part of its appeal to international residents. Transport links, urban development and access to services can all influence the experience of living in a country.
However, the index’s overall score does not mean the UAE will be the best choice for every individual. Personal priorities, income, family needs and lifestyle preferences can lead to different conclusions.
Monaco and Andorra finish ahead of the UAE
Monaco took first place in the 2026 index with a score of 73.89, while Andorra came second with 73.68. The UAE followed closely with 73.15.
The difference between Monaco and the UAE was just 0.74 points, highlighting how closely the three destinations ranked overall.
According to Nomad Capitalist’s assessment, each destination performed best in a different area. Monaco led for quality of life and infrastructure, Andorra for safety and freedom, and the UAE for tax.
The UAE was also the only Gulf country included in the index. Within the broader Middle East, Africa and Indian Ocean grouping, it ranked first among the five destinations assessed. The Seychelles placed 12th globally, followed by Mauritius in 17th place.
The results show why it is useful to look beyond the overall ranking. A destination’s position can change considerably depending on which factors matter most to a prospective resident.
Golden Visa and residency options add to the UAE’s appeal
The UAE’s residence and access score of 78.7 placed it seventh globally in this category.
One relevant part of the country’s residency framework is the Golden Visa programme. The UAE offers renewable five- or 10-year residency to eligible investors, entrepreneurs, specialised professionals, outstanding students and other qualifying groups, depending on their category and eligibility.
The programme allows eligible holders to live, work or study in the UAE without requiring a traditional sponsor. It also offers provisions for sponsoring family members.
These options can be relevant to professionals planning a longer stay, entrepreneurs establishing businesses and investors considering the country for their next move. However, the Golden Visa is not available automatically to every expatriate, and applicants must meet the requirements for their respective categories.
The index’s residency score should therefore be viewed as a comparison of destination-level conditions, rather than a guarantee of approval or a particular visa outcome.
The third-place ranking puts the UAE among the leading destinations assessed by Nomad Capitalist, particularly for people who prioritise tax conditions and long-term residency options.
For existing residents, the result offers an international comparison of the environment in which they live and work. For prospective residents, it provides another point of reference when comparing destinations.
Entrepreneurs and investors may find the tax ranking relevant when reviewing business locations, while professionals and families may place greater weight on infrastructure, residency conditions and everyday living needs.
The index does not measure every factor that affects a person’s experience. Housing costs, school fees, healthcare expenses and individual financial circumstances should also be considered before making a relocation decision.
FAQs
Is the UAE the third-best place to live in 2026?
The UAE ranked third among 63 destinations in Nomad Capitalist’s 2026 Lifestyle Index, with an overall score of 73.15 out of 100. Monaco and Andorra ranked first and second, respectively.
Why did the UAE rank first for tax?
The UAE received a score of 96 out of 100 in the tax category. Its lack of personal income tax contributed to its appeal in the index, although corporate tax and VAT still apply under the relevant rules.
Which country ranked first in the 2026 Lifestyle Index?
Monaco ranked first with 73.89 points, followed by Andorra with 73.68 points. The UAE came third with 73.15 points.
Does the UAE offer long-term residency visas?
Yes. The UAE offers renewable five- and 10-year Golden Visas to eligible categories, including qualifying investors, entrepreneurs and specialised professionals. Requirements vary by category.
Does the ranking mean the UAE is the best country for everyone?
No. The index uses five equally weighted categories, so the results depend on its chosen methodology. Individuals should also consider their budget, family needs, career plans and preferred lifestyle.
The UAE’s third-place finish in Nomad Capitalist’s 2026 Lifestyle Index highlights its strong tax score, residency options and infrastructure. While the ranking offers a useful international comparison, the right destination ultimately depends on each person’s financial position and priorities.
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