On an individual level, the changes to the tax regime for non-domiciled individuals (UK residents with permanent homes abroad) have further discouraged some entrepreneurs from seeing the UK as the right home for their entrepreneurial activities, dealing a further blow to UK’s attractiveness for startups and scaleups.

To quickly recap on the non-dom changes – before April 2025, non-doms could keep foreign income offshore without paying UK tax on it. Now, after four years of UK residence, they must pay UK tax on worldwide income regardless of where it's held. Labour's October 2024 Budget confirmed that non-dom status will be abolished from April 2025 and replaced with a residence-based regime, which also bring foreign earnings into the UK inheritance tax system.

Upwardly mobile

Research conducted by Henley & Partners found that in 2025, 16,500 millionaires are set to leave the UK due to the new tax laws. The changes to the non-dom regime are cited as a contributing factor to this trend. And whilst EU nations like France, Spain and Germany are expected to see net outflows of 800, 500, and 400 millionaires respectively, this is far less than the UK.

But the headlines around non-doms disguises the fact that it’s not just ultra-wealthy individuals looking for alternatives to the increasing tax burden of operating from the UK. Businesses of all shapes and sizes are looking for attractive regions in which to headquarter their operations for tax purposes – and that’s a key reason why the UAE is emerging as a top destination for internationally minded businesses and talent alike.

Dubai is doubling down in terms of its attractiveness to international capital and mobile businesses. There are an estimated 9,800 millionaires set to move to the UAE this year alone, drawn by its pro-business environment, zero income tax and high-quality of life and infrastructure.

Relocation, relocation, relocation

For most UK-based entrepreneurs and high earners, the decision to relocate to Dubai isn’t a knee-jerk response to tax changes. Rather, it’s a well-planned, long-term move driven by business strategy. Countries like the UAE offer a compelling package: low tax rates, high living standards, streamlined regulation, and a growth-oriented business environment.

The biggest draw? The corporate tax rate. In the UAE, businesses pay 0% tax on profits up to AED 375,000 ($102,000), then just 9% above that threshold – a stark contrast to the UK's 25%. For business owners looking to retain profits and reinvest in growth, that difference is potentially transformational. We’ve created a corporation tax calculator so show businesses how much they could save by setting up in Dubai: https://strivedubai.com/uk-corporate-tax-calculator.

Add to that the UK tougher treatment of successful individuals when it comes to inheritance tax and the case becomes even stronger. For those building generational wealth, the UAE presents not just a better place to do business but a place to live, grow and get excited about the future.

Work/life balance

One of the questions that business owners tend to ask when it comes to setting up in Dubai is whether they need to live in Dubai to have a company there. The answer is not necessarily.  Depending on your business activity, you can incorporate your company and banking without having to class the UAE as your main place of residence.

When it comes to the office location itself, while in some instances, mainland companies require a physical office to set the company's registered address, Free Zones provide businesses with a virtual or hot desk set up and can act as your business's registered office within their offering.

It’s worth remembering that the UAE offers a much more appealing tax system than many other countries in the world. It has low corporate taxes (some industries are exempt), low VAT rates and personal income tax for residents is currently 0%. For many successful UK entrepreneurs, that’s a compelling proposition when it comes to thinking about the long-term strategic direction of their business.