Invest in Dubai from UK | Tax Optimization & Company Setup
Relocate to Dubai from the UK – Tax Benefits & Business Setup Guide
UK investors and entrepreneurs are increasingly looking to relocate to Dubai (UAE) from the UK to capitalize on the UAE’s tax-friendly regime and vibrant business environment. In fact, nearly 1,000 high-net-worth individuals from the UK moved to Dubai in 2024 alone
Invest in Dubai from the UK – considering the lucrative tax advantages, Dubai free zone setup options, offshore structures, company formation steps, residency visas, and asset protection strategies.
By moving your base from the UK to the UAE, you can legally reduce your tax exposure, protect your assets, and enjoy Dubai’s world-class infrastructure and lifestyle.
Why Dubai is Ideal for UK Investors
Dubai offers an exceptional environment for UK investors seeking growth and global reach. The city is a major financial hub with modern infrastructure, a stable economy, and a pro-business government. English is widely spoken, making it easy for UK entrepreneurs to operate. Crucially, the UAE provides a transparent and advantageous tax regime – with no personal income tax, no capital gains tax, and no inheritance tax
This means British investors can retain more of their wealth and pass on assets to heirs without UK-style estate taxes
Dubai also has a high standard of living, strong legal protections, and an expat-friendly lifestyle that attracts over 240,000 British expatriates
With its strategic location between Europe, Asia, and Africa, Dubai is a perfect base for international operations, offering easy access to global markets
Key Takeaway:Relocating from the UK to Dubai lets you combine a zero-tax personal income environment with a dynamic business hub. Many UK millionaires are already making the move to enjoy Dubai’s tax benefits and quality of life
UAE vs UK Tax Advantages for Investors
Tax Category | United Kingdom | United Arab Emirates |
---|---|---|
Personal Income Tax | Up to 45% | 0% |
Corporate Tax | Up to 25% | 9% above AED 375k (0% below) |
Capital Gains Tax | Up to 28% | 0% |
Dividend Tax | 7.5% – 38.1% | 0% |
VAT (Sales Tax) | 20% | 5% |
Inheritance Tax | 40% | 0% |
The UAE’s tax environment beats the UK’s on virtually every front. UAE investors pay no income tax or capital gains tax, whereas UK residents face up to 45% income tax and 28% capital gains tax. Even with the UAE’s new 9% corporate tax (introduced in 2023), it remains far lower than the UK’s 25% rate. Value Added Tax is just 5% in the UAE, compared to 20% in Britain. There are also no taxes on dividends, wealth, or inheritance in the UAE, allowing UK investors in Dubai to grow and transfer wealth tax-free.
UAE Free Zone Company Formation for UK Residents
When setting up a business in Dubai as a UK investor, Free Zones are often the best option. Free zones offer 100% foreign ownership, meaning you do not need a local Emirati sponsor or partner. They also come with zero corporate tax for a defined period, no import/export duties, and simplified customs procedures.
Free zone companies allow full repatriation of profits and capital to your home country without restrictions, which is ideal for UK entrepreneurs wanting to send earnings back home. Additionally, free zones streamline the setup process with one-stop services for licensing, visas, and office space.
Popular Free Zones for UK Investors include:
Dubai Multi Commodities Centre (DMCC)
Jebel Ali Free Zone (JAFZA)
Dubai International Financial Centre (DIFC)
International Free Zone Authority (IFZA)
Abu Dhabi Global Market (ADGM)
Each free zone has its own sector focus, fee structure, and visa quotas, so the best choice depends on your industry and plans. Free zones make it straightforward for UK citizens to set up a company in Dubai with complete control: you can own 100% of shares, pay no local taxes, and operate with minimal bureaucracy.
Offshore Company Structures (SPVs) in the UAE
Besides free zones, UK investors may consider an offshore company in the UAE for holding assets or conducting international business. UAE offshore companies are legal entities registered in jurisdictions like Ras Al Khaimah or Jebel Ali, but they do not operate a physical business inside the UAE.
Benefits of Offshore Companies:
0% tax
Low setup and maintenance costs
Enhanced privacy for asset holdings
Often used as special purpose vehicles (SPVs)
Popular offshore jurisdictions are:
RAK International Corporate Centre (RAK ICC)
JAFZA Offshore
Offshore companies are excellent for asset protection but do not provide UAE residency or local banking options, unlike free zone companies.
How to Set Up a Business in Dubai as a UK Resident
1. Choose Your Business Structure:
Decide between free zone, offshore, or mainland.
2. Select Free Zone & License Type:
Choose based on your industry focus.
3. Reserve Company Name:
Submit names for approval.
4. Submit Incorporation Documents:
Prepare passport copies, address proof, and business plan.
5. Capital & Bank Account (if required):
Some free zones have minimal share capital requirements.
6. Receive Business License:
Receive your incorporation certificates.
7. Apply for Residency Visas:
Apply for investor or partner visas.
8. Emirates ID & Bank Accounts:
Get your Emirates ID, then open personal and corporate bank accounts.
9. Start Operations:
Stay compliant with corporate tax filings, accounting, and license renewals.
Legally Reducing Tax Exposure & Protecting Assets
By relocating to Dubai:
Income from UAE and abroad is not subject to UK tax (if non-resident).
No UK inheritance tax on foreign assets.
No capital gains tax.
Tax-free global dividend and rental income.
Asset protection via UAE-based SPVs, foundations, and holding companies.
With careful planning, UK citizens can dramatically optimize tax exposure while remaining fully compliant.
UAE Residency Options for UK Investors
Investor Visa
Linked to your business license.
Typically 2-3 years, renewable.
UAE Golden Visa
10-year renewable visa.
Requires significant real estate or business investment.
Both options allow British citizens to live, work, and manage businesses tax-efficiently.
FAQ: Moving from the UK to Dubai
No, the UAE has no personal income tax, capital gains tax, or inheritance tax.
Yes, by becoming a UAE resident and non-UK resident. Professional advice is strongly recommended.
By incorporating a UAE company and applying for an Investor Visa or Golden Visa.
No. Free zones and most mainland activities allow 100% foreign ownership.
Free zone setups start from AED 10,000–20,000 depending on business type.
Book Your Free Consultation with Affinitas DMCC
Book your free consultation today. Let Affinitas handle your relocation, while you focus on building your tax-free future.