British workers and millionaires pivot to the UAE for tax relief and stability

Dubai: British professionals and wealthy households are relocating to the UAE in growing numbers, reflecting dissatisfaction with the economics of life in the UK and a preference for jurisdictions that offer greater financial stretch and long-term stability. Dubai and Abu Dhabi sit at the core of this shift, drawing interest from finance, engineering, healthcare, education, legal and technology professionals, alongside a rising share of capital holders and investors.

According to a recent survey of 1,000 UK adults conducted by Ignite SEO, 61% would relocate abroad if given the opportunity, with the UAE at the top of the list. The motivations reflect constrained disposable income at the household level. A 20% VAT regime, salaries that do not offset personal tax exposure, and a shrinking non-dom framework have contributed to a general cost-to-income imbalance for families and professionals assessing their post-tax budgets.

The UK has long ranked as a global trading hub, supported by favourable time zones and a mature banking system, but recent policy directions are reshaping the calculus. Employers’ National Insurance, which rose from 13.8% to 15% after successive budgets, has increased the cost of hiring staff, encouraging companies to consider outsourcing to lower-burden locations where global business operations and capital are concentrating.

The flow of high-net-worth individuals has added a further dimension. In 2024, 6,700 millionaires moved to the UAE, with nearly 10,000 expected to arrive in 2025, while the UK faces a projected net loss of 16,500 millionaires in 2025, according to the Henley Private Wealth Migration Report 2025. The UK’s outflows this year are more than double China’s 7,800 predicted losses, despite China leading the millionaire outflow table for most of the previous decade. The US sits in second place for inflow in 2025, attracting 7,500 incoming millionaires by year-end, around 2,000 fewer than the UAE.

“Making the move from the UK to the UAE used to be an exotic adventure," noted Dr Tracie Scott, Assistant Professor at Heriot-Watt University Dubai. "In 2025, it has now become commonplace. Many factors account for people making this dramatic shift from the familiar shores and green pastures of the UK to the sands of the Arabian desert.

"First among these is the rather pedestrian quality of life. The cost of living in the UK, salaries that are not commensurate with taxation rates, including a 20% VAT, does not leave much for a family to enjoy at the end of the month," explained Dr Scott. "UK politics has also demonstrated some volatility, as evidenced by having 6 Prime Ministers in the last 10 years, showing a pretty short shelf-life for the top job. Better economic prospects and the promise of a stable environment make the UAE an attractive move.”

The UAE does not position itself as the lowest-cost market globally, but the economics change once income tax exits the equation. Professionals report that salaries in finance, logistics, real estate and technology stretch further, while safety, infrastructure reliability, English-speaking environments and large expatriate communities add to the comfort of daily movement.

From an investment perspective, Dr Jelena Jajusevic, Deputy Global Head of Department (Accountancy, Economics and Finance) at Heriot-Watt University Dubai, noted that the UAE is benefiting from a “global reshuffle of wealth.” “This concentrates mobile wealth in a few hubs that offer safety, low taxes and strong infrastructure, and leaves traditional welfare states with a shrinking pool of high-income taxpayers.”

She added that the regulatory response has already begun, citing the OECD's minimum corporate tax rules and the UAE’s adoption of a 15% top-up tax on large multinationals. “For the UAE, the opportunity now is to channel incoming wealth into productive areas such as green infrastructure, digital innovation and talent development. Over time, clearer routes from long-term residency to citizenship, combined with modern pension and benefits systems, would help turn this inflow into deeper economic and social integration.”

The shift implies a demographic and fiscal rebalancing in which the UAE retains or extends English-speaking comfort, offers structured long-duration residency paths, and draws large-scale capital holders into productive mixed-use developments, knowledge flows, and oversight frameworks. Traditional welfare-state tax bases face imbalances when income concentration narrows.

The relocation trend from the UK is expected to continue over the next three years, driven by cost structures, career opportunities, capital routing, and the UAE's positioning in global wealth migration tables. The equation is increasingly economic, operational and psychological.