The UK is making big changes to its tax system, and these changes are pushing many wealthy people to leave the country. One major proposal is a new “exit tax” , a 20% tax on gains you haven’t even sold yet if you decide to move out of the UK. This means people could be taxed just for relocating.

This comes shortly after the UK removed its well-known non-dom tax policy, which permitted international residents to live in the UK without paying tax on their foreign income unless they brought it into the country. From April 2025, this system is gone.

With both rules changing simultaneously, many investors and high-net-worth individuals (HNWIs) are reassessing where they want to live and invest. And Dubai is becoming one of the top choices.

Why Are People Leaving the UK?

For the first time in decades, the United Kingdom is experiencing a significant outflow of wealthy residents. In 2024, the country had a net loss of almost 9,500 millionaires, the greatest of any nation in the world. This rapid shift reflects rising concern among wealthy individuals about the UK's changing financial landscape. A country formerly admired for its stability, predictability, and long-standing tax breaks is now seen with growing skepticism as its policies become more complex and unfavourable.

The new tax reforms are the primary motivator behind this campaign. Higher taxes, the abolition of the non-dom regime, more intricate procedures, and significantly less long-term certainty have made the UK a more difficult environment for wealth planning. Many people who previously depended on the UK's clear and consistent framework are now concerned about the future. As a result, they are actively looking for other destinations that provide easier processes, stable regulations, and a safer long-term environment for their wealth, with Dubai emerging as a top contender.

A Billionaire Leading the Trend: Lakshmi Mittal

Lakshmi Mittal, the 75-year-old billionaire from Rajasthan and chairman of ArcelorMittal, is a prominent example of this tendency. Mittal, a Swiss tax resident, has just purchased property on Naïa Island, a luxury enclave, in addition to his existing estate in Dubai. He is the tenth richest person in the United Kingdom, with an estimated net worth of £15.4 billion. His family has long-standing ties to London, with many residences in Kensington Palace Gardens; however, Dubai's stability, tax breaks, and financial prospects proved more appealing. Mittal's decision exemplifies how top-tier global wealth is rapidly flowing to Dubai as the UK becomes less financially dependable.

Why Is Dubai Becoming the New Favourite?

Dubai offers something the UK no longer does, which is a simple, clear, and friendly tax system. It has become a strong destination for global families, entrepreneurs, and investors who want stability and growth. Here’s why:

1. Simple and Tax-Free Living

Dubai’s tax benefits are very straightforward:

• No income tax

• No capital gains tax

• No inheritance tax

• No wealth tax

• No tax on global income

• No annual property tax

There are no complicated rules, no remittance issues, and no sudden policy changes. People know exactly what to expect.

2. Strong and Profitable Real Estate Market

Dubai’s property market is one of the strongest in the world.

Benefits include:

• Foreigners can buy freehold property

• No annual property tax

• Easy to send rental income back to your home country

• Real estate can be held in trusts or foundations for family planning

• Rental yields of 6–8%, compared with 2–4% in prime London areas

With high demand and steady population growth, Dubai property is seen as a safe and profitable long-term investment.

3. Safe, Stable, and Well-Regulated

Dubai has built a strong, trusted system for investors:

• DIFC uses a familiar common-law system, similar to the UK

• RERA protects buyers with strict rules and transparency

• Strong anti-money laundering (AML) controls

• Uses international financial standards (IFRS)

• Not blacklisted, so global banking and investment access stays easy

Dubai offers security and clear rules,  important factors for global investors.

4. Long-Term Residency Through Property Investment

Buying property in Dubai can also give you long-term residency.

For instance, If you invest AED 2 million or more (£430,000), you can qualify for the 10-year Golden Visa, which offers:

• Long-term residence

• No need for an employer sponsor

• Freedom to live, work, and manage your investments

This makes Dubai especially attractive for families.

Dubai vs UK: A Clear Difference

The United Kingdom is entering an era of higher taxes, more complex financial regulations, and heightened uncertainty. Recent changes, such as the end of the non-dom regime, the introduction of a prospective departure tax, and global taxation on income and gains, have made long-term financial planning significantly more difficult. For high-net-worth individuals, this means increased exposure, more bureaucracy, and less predictability, all of which have historically made the United Kingdom an appealing destination for wealth preservation and investment. With these changes, many investors are reevaluating whether the UK still offers the security and certainty they need to manage their investments and prepare for the future.

In contrast, Dubai offers a very appealing option. The city has no personal income, capital gains, or inheritance taxes, and its investment rules are simple and transparent. Its real estate industry provides significant returns and chances for capital growth, while regulatory frameworks protect the safety and transparency of both domestic and foreign investors. For families and globally mobile individuals, Dubai also offers long-term residence options and the potential to efficiently transfer wealth between generations. Dubai's combination of tax efficiency, regulatory clarity, and high-performing assets has made it a favorite destination for high-net-worth individuals looking to relocate their homes, businesses, and investments in pursuit of security and long-term growth.

Final Thought

The termination of the UK's non-dom regime, along with the anticipated exit tax, indicates a significant shift in global wealth planning, rendering the UK significantly less appealing for long-term wealth protection than it was previously. In contrast, Dubai offers an appealing alternative, providing stability, simplicity, no personal taxes, high property returns, and long-term residency options. These benefits have made Dubai a more popular destination for high-net-worth individuals, establishing it as one of the world's leading hubs for global wealth, investment, and strategic relocation.