UK Millionaires Migrate to Dubai and Abu Dhabi Amid Non-Dom Tax Policy Shifts
Wednesday, 25 June 2025
As Labour’s proposed changes to the UK’s non-dom tax rules unsettle high-net-worth individuals, thousands of millionaires are relocating to Dubai and Abu Dhabi. Despite efforts to soften the policy, the UAE continues to benefit as London risks losing its elite financial class.
Key Highlights:
- Surge in Wealth Exodus from the UK:
- Over 10,000 UK millionaires left the country in 2024 — a 157% increase over 2023.
- The UK recorded the second-highest global net loss of HNWIs, after China.
- Dubai and Abu Dhabi Emerge as Top Destinations:
- UAE cities are increasingly favored for their tax-friendly environments and economic stability.
- HNWIs relocating also bring significant foreign investment and legal work to new hubs.
- UK’s Non-Dom Tax Policy Under Fire:
- Labour’s proposal to abolish non-dom tax status aims to raise public funds but risks pushing wealth abroad.
- Rachel Reeves’ recent remarks at WEF Davos 2025 suggest a more generous transition phase for the temporary repatriation facility.
- Critics argue partial reversals aren’t enough to stop the elite outflow.
- Legal and Financial Expert Opinions:
- Karim A. Youssef, international arbitration lawyer: “Where my clients go, their wealth follows.”
- Analysts warn of a long-term erosion of London’s financial dominance without full policy reversals.
- Foreign Income and Gains Regime Raises Concerns:
- Increased capital gains taxes and other burdens make London less attractive compared to UAE and Singapore.
- UBS Global Wealth Report predicts continued outflow of wealth from the UK.
- Brexit and Trump-Era Geopolitics Influence the Shift:
- Since Brexit, the UK has seen a steady decline in billionaire residency.
- Some experts argue the Trump factor may present the UK with a chance to rethink its tax approach.
