Something significant has been happening over the past couple of years, and the numbers make it impossible to ignore.
According to the Henley Private Wealth Migration Report, the UK is projected to see a net outflow of approximately 16,500 millionaires in 2025 alone, the largest exodus of high-net-worth individuals from any country in a single year. At the same time, Dubai and the wider UAE are on track to receive a record net inflow of around 9,800 relocating millionaires, topping the global leaderboard above even the United States.
These are not just statistics. They represent a genuine, structural shift in how wealthy British entrepreneurs, investors, and business owners are thinking about where they live, where they base their companies, and where they want their wealth to grow.
So what is actually driving this? And if you’re considering moving from UK to Dubai yourself, what do you need to know?
The UK Tax Landscape Has Changed Dramatically
To understand why so many high-net-worth individuals are leaving, you have to understand what has happened to the UK tax environment over the past two years. It has changed in ways that directly affect people at the top of the wealth spectrum.
The most significant shift was the abolition of the non-domiciled (non-dom) tax status, which came into effect in April 2025. For decades, the non-dom regime allowed individuals who lived in the UK but were domiciled elsewhere to avoid paying UK tax on their overseas income and gains. It was a key reason why international entrepreneurs and investors chose London as a base. That protection is now gone.
Replacing domicile with residency as the basis for taxation, the new rules mean that individuals who have been UK-tax-resident for 10 or more of the last 20 years are now considered “long-term residents” and face UK inheritance tax (IHT) on their worldwide assets – at 40%. Even more remarkably, this IHT exposure can follow you for up to 10 years after you leave the country.
On top of that, the UK’s Autumn Budget 2025 tightened things further: new caps on trusts, higher dividend and savings tax rates, a mansion surcharge on properties worth over £2 million, frozen tax thresholds accelerating fiscal drag, and major changes to Business Property Relief and Agricultural Property Relief that affect family business succession planning.
For context, the UK’s top income tax rate already sits at 45%, with capital gains tax at 24% on most assets. In the UAE? All of those figures are zero.
Dubai’s Zero-Tax Environment is the Core Pull Factor
Dubai has always been known as a tax-friendly destination, but the contrast with the UK has never been sharper. There is no personal income tax, no capital gains tax, no inheritance tax, and no wealth tax in the UAE. VAT exists at 5%, compared to the UK’s 20%. For high earners, the financial difference can be transformational.
For an entrepreneur generating income of £200,000 or more annually from their business, a significant portion of that disappears in the UK before it ever reaches their pocket. In Dubai, the same person keeps substantially all of it and can reinvest it, build generational wealth with it, or simply use it to fund the lifestyle that their work has earned them.
It is also worth noting that the UAE’s currency, the dirham, is pegged to the US dollar. This provides a level of monetary stability that is particularly attractive to investors who want to preserve the real value of their wealth over time.
The Golden Visa Has Made Long-Term Residency Accessible
A decade ago, establishing genuine Dubai residency for UK citizens required either local employment sponsorship or significant business investment. That has fundamentally changed with the UAE Golden Visa programme, which now offers a renewable 10-year residency to a broad range of qualified individuals.
In 2025 alone, the UAE issued approximately 158,000 Golden Visas, nearly double the year prior, reflecting the government’s deliberate strategy to attract globally mobile talent and capital. For British nationals, the qualifying routes are accessible and well-defined.
You can qualify for the UAE Golden Visa through:
- Real estate investment of AED 2 million or more (approximately £430,000+)
- Business ownership and entrepreneurship in the UAE
- Employment with a minimum monthly basic salary of AED 30,000 (from October 2025)
- Large-scale investment in UAE public or private sector projects
Crucially, the Golden Visa does not require a minimum stay in the UAE. Holders can spend extended periods outside the country without losing their residency, making it highly suitable for British investors who want to maintain a base in Dubai without relocating full-time. You can also sponsor your spouse, children, and even domestic staff under the same visa.
Business Setup in Dubai for UK Entrepreneurs
It is not just about where you pay tax, it is about where you can build. Dubai’s business environment is designed to attract globally minded founders and investors, and that shows in the infrastructure it offers.
The UAE’s free zone system remains one of the most attractive in the world. Businesses operating within a free zone benefit from 0% corporate tax on qualifying income, 100% foreign ownership, full profit repatriation, and no import or export duties. For service businesses, consulting firms, tech companies, and investment vehicles, this structure is remarkably efficient.
For businesses wanting to trade directly with the UAE mainland market, a mainland company structure is also straightforward to set up, and the UAE’s corporate tax, introduced in 2023 at 9% for profits above AED 375,000, still compares favourably with the UK’s 25% corporation tax rate.
Dubai’s geographic position, sitting at the crossroads of Europe, Asia, and Africa, makes it an excellent operational base for businesses with international ambitions. Add in modern infrastructure, digital connectivity, and a government that is genuinely business-friendly in its policy-making, and the appeal for UK entrepreneurs becomes clear.
Safety, Stability, and Quality of Life
High-net-worth individuals relocating to Dubai consistently cite more than just tax savings as their motivation. Quality of life, personal safety, and political stability rank highly in almost every survey of why wealthy families make this move.
Dubai is regularly cited as one of the safest cities in the world. Its infrastructure – airports, roads, healthcare, and digital services, is genuinely world-leading. The climate is a factor too: year-round sunshine and outdoor living contrast noticeably with the UK. And for entrepreneurs who work internationally, Dubai’s location means you can reach almost any major financial centre in under seven hours.
The UAE government has also demonstrated a consistent long-term commitment to attracting and retaining global capital. The Golden Visa programme, the continued expansion of free zones, and a regulatory environment that has steadily improved all reflect a jurisdiction that is actively competing for the world’s most mobile wealth.
Is This Trend Going to Continue?
By most indicators, yes. Analysts tracking UK millionaires moving to Dubai and other destinations expect outflows to intensify through 2026 and beyond. The structural changes to UK tax law are not reversals; they are permanent shifts. The inheritance tax tail period alone means that even people who have already left remain inside the UK tax net for years, and those thinking about leaving have every incentive to act sooner.
The Henley data frames it starkly: for the first time in a decade, a European country is leading the world in millionaire outflows. The UK’s loss of an estimated $91.8 billion in accompanying wealth is not a temporary blip, it reflects a deeper perception that opportunity, protection, and long-term stability are increasingly available elsewhere.
Thinking About Making the Move? Here’s Where to Start
Relocating to Dubai as a British entrepreneur or investor is more achievable today than it has ever been. The routes to residency are clear, the business setup process is well-understood, and the community of British professionals already there makes the transition far less daunting than you might imagine.
What it does require is proper planning: understanding your Golden Visa route, structuring your business correctly from day one, and making sure your residency is set up in a way that genuinely satisfies both UAE and UK requirements.
At Shuraa UK, we work with British entrepreneurs and investors at every stage of this journey, from company formation and free zone selection through to Golden Visa applications and PRO services. We understand both the UK starting point and the Dubai destination, which means we can help you move efficiently and with confidence.
If you’re exploring Dubai residency for UK citizens or simply want to understand what your options look like, get in touch with our team for a no-obligation consultation. The conversation might be the most valuable one you have this year.
Frequently Asked Questions
1. Why are millionaires relocating to Dubai from the UK?
The primary drivers are the UK’s sweeping tax reforms since 2025, particularly the abolition of non-dom status, higher inheritance tax exposure, and rising rates on income, dividends, and capital gains. Dubai’s zero personal income tax, zero capital gains tax, and zero inheritance tax make it one of the most financially advantageous jurisdictions in the world for high-net-worth individuals.
2. How can a UK citizen get residency in Dubai?
The most popular route is the UAE Golden Visa, a long-term renewable residency programme available to investors, property owners, entrepreneurs, and skilled professionals. UK citizens can also obtain residency through company formation in a UAE free zone or mainland, or through employment. Each route has its own eligibility criteria.
3. Do you pay any tax in Dubai?
There is no personal income tax, capital gains tax, inheritance tax, or wealth tax in the UAE. A 5% VAT applies to most goods and services. Businesses operating on the UAE mainland pay 9% corporate tax on profits above AED 375,000, while many free zone companies continue to benefit from 0% corporate tax on qualifying income.
4. Can I keep my UK ties if I move to Dubai?
Yes, many British nationals in Dubai maintain property and family connections in the UK. However, it is important to manage your UK tax residency status carefully. A tax adviser can help you structure your residency in a way that ensures you genuinely exit the UK tax net, especially given the new 10-year IHT tail period for long-term residents.
5. How long does it take to set up a business in Dubai?
A free zone business in Dubai can typically be set up within a few days to a couple of weeks, depending on the free zone and the nature of the business activity. Shuraa’s team handles the full process, from licence selection and documentation through to bank account opening and visa applications.
