Moving from London to Dubai: A Strategic Tax and Lifestyle Case Study

A comprehensive analysis of UK-Dubai relocation featuring expert insights from Sean Bannister (Edwin Coe) and Daniel Dronsfield (EER Middle East), recorded at Home House, London, June 2025

The allure of Dubai as a destination for high-net-worth UK entrepreneurs continues to strengthen, driven by favorable tax regimes, lifestyle opportunities, and streamlined immigration processes. A recent case study discussion between leading experts illustrates the complexities and opportunities facing British families considering this significant move.

The Case: Ian and Angela's Dubai Dreams

The hypothetical case centers on Ian (45) and Angela (42), UK entrepreneurs with a successful £50 million turnover fashion company, two teenage children, and substantial UK property assets including a £5 million London home and £2 million Manchester buy-to-let portfolio generating £100,000 annually. Their goal: relocate to Dubai while maintaining UK business operations and maximizing tax efficiency.

Sean Bannister, Head of Tax at Edwin Coe, emphasized the critical importance of getting residency status correct from the outset. "This is the fundamental issue that we deal with for clients that are looking to exit," Bannister explained. "Fortunately, the UK has a pretty well-defined framework for establishing residency."

Navigating UK Tax Residency Rules

The UK's statutory residency tests, in place since 2013, provide a clear framework but require careful navigation. For entrepreneurs like Ian, the key lies in establishing automatic non-UK residence through employment in Dubai, potentially allowing up to 90 days in the UK (with 30 working days) without triggering UK tax residency.

"If Ian takes up employment in Dubai post-exit, there is every chance he could be automatically non-UK resident," Bannister noted. However, the situation becomes more complex for Angela, who isn't actively involved in the business and might spend extended periods in the UK during Dubai's hot summer months.

The residency determination affects all subsequent tax planning. Non-UK residents can receive dividends from UK companies without additional tax charges, subject to important caveats around temporary non-residence provisions that require six complete tax years outside the UK to fully secure tax-free treatment.

Property Portfolio Considerations

The couple's UK property portfolio presents ongoing obligations. As Bannister explained, "UK rental income held by a non-resident will always be taxable in the UK." This creates a strategic decision point: UK passport holders can access personal allowances against rental income, but claiming disregarded income treatment for dividends requires forfeiting these allowances.

"There would be a question to understand on a tax year by tax year basis as to whether it is advantageous to retain the personal allowance against this rental income or to lose it because you wanted to pay a dividend out in the relevant tax year," Bannister advised.

Managing UK Corporate Operations from Dubai

Running a UK company from Dubai requires careful structuring to avoid creating dual tax residency. Bannister recommended implementing "enough protections in the UK company's articles to prevent the exercise of strategic control outside of jurisdiction."

The solution involves maintaining UK-based strategic control while leveraging Dubai's business-friendly environment for new ventures. This might mean Ian physically attending UK board meetings for critical decisions while developing his Middle East fashion venture independently.

Dubai's Golden Visa Advantage

Daniel Dronsfield from EER Middle East, with offices in Dubai and Abu Dhabi, outlined Dubai's attractive Golden Visa regime. Two primary routes offer ten-year residency: a AED 2 million (approximately £435,000) bank deposit or property investment of equivalent value.

"The average price is above that for properties in Dubai," Dronsfield noted, making property investment a natural choice for many relocating families. Crucially, Golden Visas extend family benefits, allowing children to remain on parents' visas beyond age 18 – a significant advantage over standard employment visas.

Educational and Family Considerations

The timing of school moves requires strategic planning. Document attestation through UAE embassy and UK Foreign Office processes can take several weeks, crucial for securing Emirates IDs and school places. "It's very, very subscribed, and they're awaiting this for most schools," Dronsfield explained, though movement throughout the year creates opportunities.

Dubai's diverse residential areas cater to different lifestyle preferences: city living in Business Bay or Downtown, beachside living on the Palm, or community-focused golf club developments. Crucially, residential choice often depends on school locations given Dubai's traffic considerations.

Corporate Setup and Business Opportunities

Dubai offers 50-60 different jurisdictions for business setup, from free zones to mainland options and specialized financial centers like DIFC and ADGM. For fashion industry ventures, the choice depends on business model – retail locations drive jurisdictional requirements, while trading operations offer more flexibility.

The UAE's 9% corporate tax rate, introduced recently, remains competitive globally and hasn't deterred client interest, according to Dronsfield. However, proper planning ensures compliance with various business activities and jurisdictional considerations that affect tax qualification.

The Strategic Imperative: Lifestyle First, Tax Second

Both experts emphasized that successful relocations prioritize lifestyle over pure tax optimization. "These moves shouldn't be about tax," Bannister stressed. "They should be about lifestyle and what you're looking to achieve for you and your family. If there are some ancillary tax benefits, fantastic. Take them."

The UAE's appeal extends beyond tax advantages to include:

• Streamlined immigration processes

• Business-friendly regulatory environment

• Strategic geographic location for Middle East expansion

• High-quality international education options

• Diverse expatriate community

  
  

Professional Guidance Essential

The complexity of cross-border relocations demands expert support. From UK exit planning to Dubai setup and ongoing compliance, successful moves require coordinated professional teams spanning tax, immigration, corporate services, and relocation support.

As Dronsfield observed, "Unlike some places in the world, this is why it's important that a client gets a good team together to be able to advise on the different aspects of things."

Looking Forward

The trend toward Dubai relocation among UK high-net-worth individuals shows no signs of abating. The UAE's continued focus on attracting global talent, combined with the UK's relatively straightforward exit procedures, creates an attractive proposition for entrepreneurs seeking new opportunities.

However, success requires meticulous planning, expert guidance, and realistic expectations about the practicalities of international relocation. For families like Ian and Angela, the dream of Dubai living can become reality – but only with proper preparation and professional support.

The case study demonstrates that while the opportunities are significant, the devil truly lies in the details of implementation. Those considering similar moves would be wise to begin planning well in advance, assembling expert teams to navigate the complexities of international relocation successfully.

This analysis is based on expert commentary and should not be considered specific tax or legal advice. Individuals considering international relocation should consult qualified professionals familiar with their particular circumstances.