In April 2024, the UK government made a bold policy shift by abolishing the “non-domiciled” (non-dom) tax status — a regime that had long made Britain an attractive destination for high-net-worth individuals. While the reform was framed as a step toward tax fairness, its economic consequences have been significant and immediate. Among the most notable trends is a sharp migration of wealthy investors away from the UK — with many choosing Dubai as their new base of operations.
This article explores the implications of the UK’s non-dom policy change and outlines why Dubai is rapidly becoming the destination of choice for international investors.
The non-dom regime allowed foreign nationals living in the UK to avoid taxation on their global income — unless those funds were remitted to the UK. This system incentivized wealthy individuals to reside in the UK while maintaining international income streams, effectively creating a tax shelter within the bounds of the law.
With the cancellation of this status, the UK now treats all residents as subject to full taxation on global income, regardless of origin. The change was introduced to increase government revenue and promote tax equity, but it has resulted in an unintended consequence: the departure of some of the country’s wealthiest residents.
The removal of non-dom benefits has significantly increased the tax burden on ultra-high-net-worth individuals who derive much of their income from international holdings. For many of them, remaining in the UK now comes at a much higher financial cost — without a proportional gain in business or lifestyle incentives.
According to multiple reports, this has led to a sharp decline in the luxury property market in London, with sales of high-end homes dropping by more than 35% and prices falling to their lowest levels in decades.
Dubai has emerged as one of the most attractive destinations for global investors following the non-dom exit. The reasons are clear and compelling:
Dubai offers zero personal income tax, no capital gains tax, and a range of tax-efficient investment structures through free zones and offshore jurisdictions.
The UAE’s streamlined regulatory framework and ease of doing business continue to attract global entrepreneurs, family offices, and corporate investors.
The UAE’s long-term visa programs, including the 10-year Golden Visa, provide security and flexibility for individuals and their families.
Situated between Europe, Asia, and Africa, Dubai offers global connectivity with state-of-the-art infrastructure and one of the world’s busiest international airports.
Dubai is known for its luxury real estate, global schools, private healthcare, and world-class leisure amenities — all in a safe and politically stable environment.
Several high-profile investors and business figures have publicly or quietly exited the UK in the wake of the non-dom reform. Some examples include:
Egypt’s wealthiest man, formerly based in London, has reportedly relocated to Italy, while increasing his investment footprint in the UAE. His departure signals a broader trend among Middle Eastern investors previously domiciled in the UK.
The German billionaire investor left for Switzerland but is simultaneously expanding his operations in the UAE, particularly in technology and biotech sectors.
The Canadian entrepreneur and media personality sold her London mansion and moved to Italy. While she chose Europe, she acknowledged Dubai as a serious relocation option due to its dynamic investment climate.
A Lebanese-Nigerian telecom entrepreneur, Haidar described his new UK tax liability as unsustainable, estimating a five to sevenfold increase. He publicly stated it was time to “pack his bags,” citing Dubai as one of his preferred alternatives.
The departure of ultra-high-net-worth individuals from the UK has had a noticeable impact on the real estate market. Luxury property transactions in London have declined sharply, while prices have fallen across prime central districts. At the same time, Dubai’s real estate market is booming, with record-breaking property deals and heightened interest from global investors looking for tax-efficient safe havens.
The UK’s elimination of the non-dom tax regime marks a turning point in global wealth migration. While the intent was to create a fairer tax system, the result has been a capital flight that may cost the country more in lost investment than it gains in tax revenue.
In contrast, Dubai is increasingly positioned as the world’s premier destination for mobile capital and global investors. Offering a blend of regulatory ease, tax efficiency, and lifestyle quality, the Emirate is no longer just a regional hub — it is a global magnet for the world’s wealth.
If you're considering relocating your investments or exploring real estate opportunities in Dubai, Bonne Apart offers tailored advisory services for international investors seeking strategic entry into the UAE market.
DE
EN
NL
RU