Moving from the UK to Dubai: What You Need to Know

Securing Dubai Residency Through Real Estate Investment

The fastest way to secure residency in Dubai is by investing in real estate. A property purchase valued at around USD $500,000 (or approximately AED 2 million) qualifies you for a residency visa, which usually lasts 5 years depending on the emirate’s specific regulations. The visa grants you the right to live in Dubai and enjoy its 0% tax system.

Managing Wealth: Trusts, Offshore Accounts, and Corporate Structures

Where to Keep Your Wealth

‍Moving to Dubai provides access to tax-friendly environments, but you must decide where to hold your wealth. Trusts and offshore accounts can help protect and manage assets. Jurisdictions like Hong Kong and Singapore, which have territorial tax systems, may be advantageous for certain types of businesses.

Corporate Entity Setup

‍Dubai recently introduced a 9% corporate tax for businesses. However, depending on the nature of your business, setting up a company in other jurisdictions like Hong Kong or Singapore, which only tax income generated within the country, may reduce your global tax burden.

The Banking System and Financial Transfers

Managing the flow of funds in and out of tax-friendly jurisdictions requires careful planning. Offshore bank accounts can be useful, but transferring large sums of money back into high-tax jurisdictions, like the UK, may trigger scrutiny. This requires a well-thought-out approach to ensure compliance and avoid complications when investing or repatriating funds.

The Importance of Tax Planning

Relocating to Dubai is not just about securing residency—comprehensive tax planning is crucial. Establishing residency doesn’t eliminate all tax obligations. For example, UK citizens may still be liable for certain taxes in the UK. Structuring your assets, businesses, and wealth efficiently requires a holistic tax strategy to minimize liabilities and protect your wealth.

Conclusion

Relocating to Dubai through real estate investment offers a fast track to 0% income tax, but the real work begins with structuring your wealth and businesses to ensure long-term benefits. Comprehensive tax planning is essential to navigating international regulations and maintaining financial flexibility.

At Travels & Savings, The Tax Firm for Global Citizens, we have assisted over 100 families and global entrepreneurs in relocating to Dubai. We offer expert advice on wealth management, tax planning, and structuring your financial assets to minimize taxes legally. Contact us today to ensure a smooth, tax-efficient transition to your new life in Dubai.

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