UK Abolishes Non-Dom Tax Status: Why the UAE Is a Top Alternative

From April 2025, the UK abolished the non-dom tax regime, taxing worldwide income and reshaping global mobility for wealthy individuals— with the UAE emerging as a top alternative.

What Changed in the UK

• Remittance basis scrapped: non-doms now taxed on worldwide income.
• Four-year transitional regime for new arrivals.
• Global inheritance tax after 10 years of UK residence.
• Government projects £33.8B in five years (estimate debated).

Impact and Reactions

• ~16,500 millionaires expected to leave the UK in 2025.
• Around one-third likely to relocate to jurisdictions like the UAE, Italy, or Switzerland.
• Analysts warn of competitiveness risks for London.

Official Position

• HMRC downplays a mass exodus but acknowledges the regime’s shift.

UAE as a Top Destination

• No personal income tax, strong legal/tax frameworks.
• Golden Visa enables long-term residency via property or business.
• Political stability, safety, and connectivity.
• Real estate sees increased demand from European HNWIs.

Conclusion

Ending the non-dom regime marks a turning point in wealth migration. The UAE is capitalizing on its tax-friendly environment, drawing HNWIs seeking financial security and lifestyle advantages.