6 Reasons Millionaires Are Moving to the UAE in Droves
Written by
Laura Gariepy
Edited by
Amen Oyiboke
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High-networth individuals often move to different regions of the world to escape bad situations in their home nations, get tax breaks, start businesses, or enjoy a better quality of life. The United Arab Emirates (UAE) is one popular destination for wealthy expatriates.
Two experts offered several reasons millionaires are moving to the UAE in droves, explained what expatriates (expats) should consider when deciding to make the move, and presented a few alternative locations to evaluate.
Keep reading to see if the UAE could be the right new home for you.
Why Millionaires Are Flocking to the UAE
I. Murat Coskun, managing partner at Get Golden Visa, explained that wealthy individuals like the UAE for these reasons:
- Tax-efficiency: Expats won’t have to pay personal income tax, capital gains tax, or inheritance tax.
- Business-friendly environment: Entrepreneurs can do business easily and enjoy 100% foreign ownership opportunities, particularly in Dubai and Abu Dhabi.
- Global connectivity: International business people and investors view Dubai as a hub.
- Lifestyle upgrades: Expats can enjoy world-class infrastructure and luxury living.
- Safety: Expats can feel secure because the area boasts a low crime rate.
- Residency options: Many residency programs make it easy to legally live in the UAE, including the Golden Visa, which provides long-term residency to entrepreneurs and investors.
What To Consider Before Moving There
While the UAE has much to offer a millionaire, the region has some potential pitfalls. Ben Watson, certified public accountant and CFO at DollarSprout pointed out that the UAE imposes value added tax (VAT) and corporate taxes. Plus, there is “no path to citizenship, strict laws on speech, behavior, and alcohol, and extreme summers, [which] can be deal-breakers for some.”
Coskun added that the UAE is “usually viewed as a transient place. So, it has a dynamic inflow and outflow of people, wealth, and investment. This constant flow creates both opportunities and challenges. It fosters an innovative and ever-evolving business landscape, but it can also make long-term stability and continuity more unpredictable.”
Other Countries To Check Out
Watson said that before you move to any new location, you should do your research, get tax and legal advice, and make sure the lifestyle fits your long-term goals. If the UAE doesn’t align with your objectives and preferences, Watson suggested a few other countries you may want to consider moving to:
- Portugal: The nation features a low cost of living, a favorable tax structure, and a clear path to European Union (EU) citizenship (if desired).
- Singapore: The country has a high cost of living. However, it’s politically stable and offers financial benefits to entrepreneurs, such as banking privacy, low corporate taxes, and a business-friendly government.
- Switzerland: The country is expensive to live in, but the tax structure can benefit millionaires. Plus, expats can enjoy a high quality of life, strong legal protections, and banking security.
Depending on your situation, you may want to spend time in more than one nation. Coskun explained that many wealthy expats “opt for a multi-country strategy, going for residency or citizenship in multiple jurisdictions to maximize flexibility.”
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