UK tax exodus: Why more Britons are relocating to the UAE in 2025

Dubai: For many Britons, 2025 feels like a breaking point. Rising taxes, squeezed earnings, and political uncertainty are pushing record numbers to consider life abroad. And increasingly, they’re looking to the United Arab Emirates.

Dubai and Abu Dhabi, once seen as luxury stopovers, are now serious alternatives for those seeking both financial freedom and a lifestyle upgrade.

What pushes Britons away

A survey of 1,000 UK adults by Ignite SEO found 61% would relocate abroad if given the chance, with the UAE topping the list. The draw is obvious: no income tax, better weather, and an aspirational lifestyle.

But recent tax changes are adding urgency. The abolition of the “non-dom” regime, tighter inheritance rules, and higher capital gains and dividend taxes are hitting high earners hard. For professionals watching their returns shrink, the UAE’s tax-free system offers a powerful incentive.

Numbers that matter

The contrast between the two systems is stark. In the UK, top earners face income tax rates of up to 45%. In the UAE, that figure is zero. Capital gains and inheritance are untaxed there, compared to 24% and 40% respectively in Britain. Even consumption feels lighter — with VAT at 5% in the UAE versus 20% in the UK.

It’s no surprise that reports predict nearly 10,000 millionaires could relocate to the Emirates in 2025, more than to any other country, including the US. For many, the appeal lies not only in immediate savings but in the ability to preserve and grow wealth across generations.

What expats gain

The UAE isn’t a bargain destination, but the equation shifts once you remove tax. Salaries in finance, tech, logistics, and real estate stretch much further.

While rent and schooling are expensive, fuel is cheap, healthcare is world-class, and international schools are widely respected. Safety, reliable infrastructure, and the ease of communicating in English add to the comfort.

For those used to London prices, living in Dubai can feel not just manageable but rewarding.

What to weigh before moving

Relocating isn’t only about cutting taxes. Rent and education costs can be significant, and adapting to a new culture means adjusting expectations.

Visa rules, property laws, and ongoing tax obligations back in the UK require careful planning. Families also need to think long term — about children’s education, retirement, and how life in the Gulf fits into their bigger picture.

Why the UAE leads

With its zero-tax regime, advanced infrastructure, thriving expatriate community, and global investment appeal, the UAE has positioned itself as the leading destination for wealth migration.

At a time when Britain feels less welcoming for high earners, Dubai and Abu Dhabi are offering clarity, opportunity, and stability.

The takeaway?

For Britons, the question is shifting from “if” to “when” and “how.” The UAE may not be perfect for everyone, but for those balancing earnings, assets, and family needs, it’s emerging as the most practical escape route in 2025.