Thousands of Brits are flocking to the United Arab Emirates (UAE) to not only get guaranteed year-round sunshine, but to not pay income tax.
Wealthy Brits are moving to the UAE for a sunny, tax-free life (Image: Getty)
Thousands of Brits are flocking to the United Arab Emirates (UAE) to not only get guaranteed year-round sunshine, but to not pay income tax.
The Middle Eastern country is becoming increasingly popular for those seeking to exit the UK and start a new life in the sunny climate.
Many are now moving on the lure that your earnings come without the burden of income tax, a growing appeal following Rachel Reeves’ Budget.
There are currently more than 240,000 British expats already estimated to be living in Dubai according to the Expat Insider report, a whopping increase of 420% in five years.
However, the neighbouring emirate of Abu Dhabi has seen more than 250,000 Brits move from the UK to the glamorous destination, according to expat experts from Henley and Partners.
Abu Dhabi homes over 250,000 British expats (Image: Getty)
However, it’s not just UK residents who are making the move to the country, as it emerged recently that only around one in ten people living in the UAE were actually born there.
The chancellor’s October Budget has left many wealthy Brits itching to leave the country with one policy shakeup being the push that many needed.
Labour’s new change to the ‘non-dom’ system will replace domicile for residency. This means those who choose to retire abroad, and have been living outside of the UK for at least 10 years, will no longer have to pay inheritance tax (IHT) on their foreign assets.
With the ‘death duty’ currently standing at a whopping 40%, this change will be welcomed by British expats who could avoid paying the tax altogether.
Dubai is known as a ‘city of business’ (Image: Getty)
Coming into play in April 2025, the tens of thousands of Brits already living abroad will be immediately exempt from IHT when they die.
Peter Ferrignoo, of Henley and Partners, told the Telegraph: “People are moving abroad for a whole variety of reasons, but when tax is one of the most important, then they end up in the UAE, or more specifically Dubai, as a preferred location.”
If relocating for tax purposes is a consideration, the UAE is not the only place where this move could work. Bahrain, British Virgin Islands, Cayman Islands, Hong Kong, Kuwait, Qatar and Saudi Arabia are among the countries which offer a tax-free lifestyle.
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