New UK tax exiles should move to Dubai
Posted on 26 April 2009 with no comments from readers
Dubai has not had a very good international press recently. But for Britons facing up to the prospect of penal 50 per cent taxation of personal income there is reason enough to look at the tax-free lifestyle offered by this comfortable safe haven, far away from the eyes of the UK taxman.
Set yourself up in Dubai and you can enjoy zero income tax, zero capital gains tax and no tax on unearned income. That is pretty attractive if you are a high income earner getting a little tired of being frisked by a failing socialist economy.
Dubai also has a free zone for every kind of business activity under the sun. The Dubai International Financial Centre is tailor-made for those used to SEC compliance and operates under very similar English language laws. It also has a physical infrastructure so familiar that it could have been copied from The City.
Media moguls welcome
If you are allied to the media or marketing then the Dubai Media City is a natural fit, or if your operation has a technology focus then head for the Dubai Internet City.
New tax exiles will also be pleasantly surprised by the plummeting cost of office and residential accommodation in Dubai. The global financial crisis came late to the city but has sent real estate into a slump, bringing previously high rental prices falling by more than 50 per cent.
Indeed, for a financial services business facing up to the tough challenge of making money in a global economic slump then cutting operating costs has to be a first priority. If you can not grow your revenue then the only way to improve profit margins is to cut costs, and moving to Dubai might be the best solution.
No tax, no bonus
Moving staff to Dubai is also a way of making up for the absence of bonus payments in these troubled times. Tax-free salaries and a lower cost-of-living will go some way to compensate staff for losing the easy commutes of the the London region and its glorious weather.
Of course, living in Dubai has its problems. There will be domestic servants to get used to. Handling gardeners and maids can be demanding. There will also be friends and family freeloading for a holiday in the sun.
However, when the weather gets too hot there is always a super-efficient airport and airline to whisk you back to the UK to remind you of why you left it all behind. Don’t even think of paying those high taxes, move to Dubai!
no Comments posted by readers:
Hi Peter. Sometimes I wonder about establishing a second domicile in these uncertain times, and your occasional posts about Dubai have begun piquing my interest. I’m curious whether you personally speak Arabic, and the extent to which a non-speaker would find Dubai welcoming and navigable.
Dubai is English speaking – only around 25% of the population speak Arabic and it is not used in business, only the government sector which is bilingual. Even nationals often have their higher education in English and prefer to use it for business and even sometimes for general conversation. Personally I have never found it necessary to learn or had the time – but I would like to and would encourage children to learn it properly at school. For outside Dubai you would find Arabic very useful in the wider Middle East.