A Shift in Wealth Migration
According to the latest findings from Henley and Partners, a leading investment migration advisory firm, the UAE is poised to welcome one of the largest cohorts of HNWIs globally. Along with over 1000 Britons it is also expected to receive around 6,700 millionaires from across the globe.
What’s driving this migration?
Key Reasons for the Move
1. Tax Benefits:
One of the main reasons people are moving to the UAE is the absence of personal income tax. In the UK, the income tax rate can go as high as 45% for those earning over £150,000 a year, which means a large part of your income goes to taxes.
In Dubai, there is no personal income tax, so you keep all your earnings. For example, if you earn £200,000 in the UK, you could lose around £90,000 to taxes. In Dubai, you would keep the full £200,000.
In the UK, the main rate of corporation tax is 25% for companies with profits over £250,000. For companies with profits below £50,000, a rate of 19% applies.
When it comes to corporate tax, the UAE has a 9% tax on profits exceeding AED 375,000 (around £80,000). However, many businesses in free zones can benefit from a 0% corporate tax rate on qualifying income, provided they meet certain conditions set by the tax authorities.
This tax-friendly environment in the UAE is a major attraction for high-net-worth individuals who want to maximize their wealth.
2. Legislative Reforms and Diversification Success
While many European businesses struggle with bureaucracy and strict regulations, the UAE has made significant strides in supporting entrepreneurs. Reforms such as long-term residency visas and allowing 100% foreign ownership of Free Zone businesses, have made it easier for international investors and expats to establish a long-term presence in the Emirates.
Changes to labour laws in 2021 introduced flexible work options, including part-time and temporary contracts, and shifted the workweek to Monday-Friday. These updates have modernized work practices and aligned them with global standards.
The UAE’s success largely comes from its economic diversification strategy, moving away from reliance on oil and gas. Today, sectors like real estate, retail, logistics, and tourism contribute about 70% of the nation’s GDP, offering abundant investment opportunities. Emerging areas such as digital infrastructure, artificial intelligence, and fintech are also expanding rapidly.
Support for businesses is robust, with numerous accelerators, incubators, and venture capital options available. There are over 40 multi-disciplinary free zones across the country that provide businesses with specialized resources, favourable regulations, and networking opportunities, making the UAE an attractive destination for entrepreneurs.
3. An Unmatched Lifestyle and Expat Community
The UAE not only offers exceptional economic opportunities but also a remarkable quality of life that attracts Britons and Europeans. Residents enjoy a lifestyle marked by safety, luxury, and cultural richness. With access to world-class healthcare, education, and leisure facilities, cities like Dubai and Abu Dhabi provide high living standards, upscale housing, and diverse shopping and dining experiences.
For expats, the UAE is home to a vibrant community of over 240,000 British nationals, making it easy for newcomers to find familiar faces and valuable networking opportunities. This welcoming environment enhances the overall experience, making it easier for individuals settle in and thrive.
The UAE also serves as a strategic hub for travel, with Dubai International Airport being the busiest international airport in the world. This connectivity allows residents to easily explore destinations across Europe, Asia, Africa, and the Americas, further enriching their lifestyle in the Emirates.
The Rise of Investment Migration
The trend is evident: applications for investment migration programs from UK nationals have surged by 337% in the last five years. In the last two quarters alone, there was a record-breaking 160% increase in applications for residence and citizenship by investment programs. This indicates a growing desire among Britons to secure a more favourable financial future.
The Bottom Line…
With its luxurious lifestyle, favourable tax regime, and a robust economy, Dubai is increasingly becoming the go-to destination for HNWIs from the UK and beyond. If you’re considering a move, there has never been a better time to explore the opportunities this dynamic city has to offer. Whether it’s for business or a fresh start, Dubai is ready to welcome you.
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