UAE ranks world's third-best place to live in 2026

Dubai: The UAE has been ranked the third-best place to live in the world in the 2026 Nomad Capitalist Lifestyle Index, placing just behind Monaco and Andorra while taking the top spot globally for its tax environment.

The UAE scored 73.15 out of 100 in the index, which assessed 63 destinations worldwide. Monaco led the rankings with 73.89 points, followed by Andorra with 73.68, leaving less than three-quarters of a point separating the top three destinations.

The UAE was the only Gulf country included in the index, which evaluates destinations across five equally weighted categories: nature and climate, taxation, residency and accessibility, safety and freedom, and quality of life and infrastructure.

UAE tops global tax rankings

The UAE recorded its strongest performance in taxation, scoring 96 out of 100 to rank first among all 63 destinations.

It also placed fifth globally for quality of life and infrastructure, with 72.6 points, and seventh for residency and accessibility, scoring 78.7. The country ranked 16th for nature and climate, with 59.7 points.

Khatia Gelbakhiani, Head of Product at Nomad Capitalist, said the gap between Monaco, Andorra and the UAE was less than three-quarters of a point, placing all three destinations in a closely matched group at the top of the rankings.

She explained that Monaco led in quality of life, Andorra in safety and freedom, and the UAE in taxation, with the best destination ultimately depending on individual priorities rather than the rankings alone.

According to Nomad Capitalist, the index aims to provide a broader assessment of living conditions rather than relying solely on salaries or the cost of living. Each of the five categories carries equal weight in determining the overall score.

Tax policies and residency options strengthen UAE's appeal

Nomad Capitalist attributed the UAE's leading position in taxation to its tax framework, which does not impose personal income tax or capital gains tax, alongside a federal corporate tax rate of 9 per cent introduced in June 2023.

The country's performance in residency and accessibility also reflects the expansion of its 10-year Golden Visa programme, which has included investors, skilled professionals, talented individuals and entrepreneurs since 2022.

World's top 10 destinations for lifestyle in 2026

Monaco topped the 2026 Nomad Capitalist Lifestyle Index with 73.89 points, followed by Andorra in second place with 73.68 and the UAE in third with 73.15. Malta ranked fourth with 72.11 points, followed by Portugal (70.09), Cyprus (68.42), Singapore (67.12), the Cayman Islands (66.50), New Zealand (66.43) and Switzerland (65.44), completing the world's top 10 destinations for lifestyle.