Simulation: 10 Years Later for a 30s Engineer Aiming for Asset Formation by Moving to UAE (Dubai)

# Simulation: 10 Years Later for a 30s Engineer Aiming for Asset Formation by Moving to AE

This article is the MoveWorth simulation result for a hypothetical model case. It is not based on real people or cases. How will the assets of a 30s engineer change 10 years after moving to AE alone and aiming for asset formation? We will explain in detail based on the simulation results.

Persona Setting for a 30s Engineer

In this model case, a 30s engineer moves to AE alone with the goal of asset formation. The annual income in Japan is 9,500,000 yen, and the annual income in AE is 400,000 in local currency, which is equivalent to 16,800,000 yen. The local annual income is based on the industry-specific reference values of this simulator (foreign professional standard), and rent, living expenses, and tax rates use the country-specific preset values of this simulator.

Monthly Cash Flow Comparison between Japan and AE

The monthly income (before tax) in Japan is 791,667 yen, with a tax amount of 237,500 yen, resulting in a post-tax monthly income of 554,167 yen. Rent is 80,000 yen, living expenses are 120,000 yen, and monthly savings are 360,250 yen. These figures are simple monthly allocations of the input annual income, and monthly savings are the simulation values at the first year point.

On the other hand, in AE, the monthly income (before tax) is 33,333 in local currency, equivalent to 1,400,000 yen. Since the tax amount in AE is 0, the post-tax monthly income is the same amount. Rent is 5,000 in local currency, equivalent to 210,000 yen, and living expenses are 3,000 in local currency, equivalent to 126,000 yen. Monthly savings are 25,760 in local currency, equivalent to 1,081,920 yen.

Asset Transition after 5 and 10 Years

If staying in Japan after 5 years, the assets will be 28,507,899 yen, but if moving to AE, they will reach 77,893,547 yen. The difference is 49,385,649 yen. After 10 years, the assets in Japan will be 63,242,209 yen, and in AE, they will be 179,846,519 yen, creating a difference of 116,604,310 yen.

Analysis of the Impact of Taxes, Living Expenses, and Exchange Rates

In AE, the tax rate is 0%, significantly increasing the post-tax take-home income. Additionally, while rent and living expenses in the destination are higher compared to Japan, the exchange rate (1 AED = 42 JPY) contributes to the increase in income in yen terms, aiding asset formation. Note that this simulation does not include overseas medical insurance, private medical insurance premiums, private pension and defined contribution pension premiums, temporary return costs, children's education costs (such as international schools), or visa acquisition and renewal costs. Considering these, the actual take-home assets may be less than the simulation values.

Try with Your Conditions

The simulation introduced in this article is just one model case. Why not try the simulation with your conditions? Try it here.