Dubai a magnet for wealthy investors amid UK tax changes
With U.K.’s tax landscape shifting, Dubai’s appeal as a tax-friendly, luxury destination is attracting a wave of wealthy investors seeking stability and growth.
Dubai is positioning itself as a prime destination for wealthy individuals considering leaving the U.K. due to proposed changes to the country’s non-dom tax regime.
With nearly two-thirds of wealthy U.K. investors indicating plans to relocate if these changes are implemented, according to a study by Oxford Economics. Cities like Dubai, Monaco, and Switzerland are stepping in to attract them with favorable tax policies and luxury living options, industry experts and agents told CNBC.
The UAE’s allure is growing, especially as its centi-millionaire population is forecasted to increase by 150% over the next 16 years, according to the Centi-Millionaire Report 2024 by Henley & Partners.
The UK’s non-dom regime, which currently allows residents domiciled elsewhere to avoid taxes on foreign earnings for up to 15 years, is set to be abolished by the Labour government, sparking concern among high-net-worth individuals.
This has led to a surge in interest for relocation, with the UAE emerging as a top choice for its tax benefits, lifestyle, and investment opportunities. A recent survey by Arton Capital found that over one-fifth of young UK millionaires have considered moving to the UAE.
While New York, the Bay Area, and Los Angeles currently lead in centi-millionaire numbers, the shifting landscape suggests that Middle Eastern and Asian cities like Dubai and Abu Dhabi will soon be significant players in the global wealth market, according to Henley & Partners
As the UK’s political landscape evolves, the uncertainty is causing a ripple effect in its prime real estate market, with many wealthy individuals selling properties and seeking more stable environments, real estate professionals told CNBC.
Dubai, with its investor-friendly policies and absence of income, capital gains, and inheritance taxes, presents an attractive alternative for those looking to safeguard their wealth and enjoy a luxurious lifestyle.
The UAE’s proactive stance on attracting global talent and investment further solidifies its position as a premier destination for the world’s affluent individuals.
With cities like Dubai leading the charge, the global geography of wealth is shifting, and the UAE is poised to play a pivotal role in the future of high-net-worth migration.
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