UK business owners are facing their toughest year yet. Corporation tax has risen to 25%, living costs are soaring, and Brexit-related challenges persist. Meanwhile, Dubai offers 0% tax, world-class infrastructure, and unlimited growth potential.
If you've been considering relocating, 2025 is the year to do it. Here's why.
The UK vs Dubai: A Tale of Two Cities
| Factor | UK | Dubai |
|---|---|---|
| Corporate Tax | 25% | 0-9% (many pay 0%) |
| Personal Income Tax | Up to 45% | 0% |
| VAT | 20% | 5% |
| Setup Time | 4-8 weeks | 1-2 weeks |
| Foreign Ownership | 100% | 100% |
| Lifestyle | Cold, expensive | Sunny, tax-free |
Why Entrepreneurs Are Leaving the UK
1. Rising Taxes
- Corporation tax jumped from 19% to 25% in 2023
- Income tax goes up to 45% for high earners
- National Insurance adds another 13.8% for employers
Example: A UK business earning £500,000 in profit pays £125,000 in tax. The same business in Dubai? £0 (if structured correctly).
2. Brexit Complications
Post-Brexit trade barriers make it harder to do business with Europe. Dubai, on the other hand, offers tariff-free access to over 70 countries through trade agreements.
3. Economic Uncertainty
Inflation, energy costs, and political instability are making the UK a risky place to do business.
Why Dubai in 2025?
1. 0% Tax (For Real)
- No corporate tax for Free Zone companies
- 0% personal income tax
- No capital gains tax
- No inheritance tax
Pro Tip: Even Mainland companies pay only 9% tax on profits above AED 375,000 ($102,000).
2. Strategic Global Hub
Dubai is the gateway to 3 continents:
- 3 billion people within 4 hours' flight
- 70+ trade agreements
- World-class logistics (Jebel Ali Port, DXB Airport)
3. Business-Friendly Environment
- 100% foreign ownership (no local partner needed)
- Fast setup (1-2 weeks)
- No currency restrictions
- Full profit repatriation
4. Quality of Life
- Year-round sunshine
- World-class schools (British, American, IB curricula)
- Low crime rate
- Tax-free salaries mean more take-home pay
Real-Life Case Study: From London to Dubai
Sarah, a UK-based e-commerce entrepreneur, was paying £80,000 in taxes annually. She relocated to Dubai in 2024 and set up a Free Zone company.
Results:
- £0 tax on profits
- 40% lower operating costs (office rent, salaries)
- Access to Middle East and Asian markets
- Better lifestyle for her family
Her advice: "I wish I'd done this years ago."
How to Relocate: Step-by-Step
Step 1: Choose Your Business Structure
- Free Zone (for international businesses)
- Mainland (for UAE market access)
- Offshore (for holding companies)
Pro Tip: Most UK businesses choose Free Zone for tax benefits.
Step 2: Set Up Your Dubai Company
- Register your business
- Obtain a license
- Open a corporate bank account
Timeline: 1-2 weeks (Free Zone), 2-4 weeks (Mainland)
Step 3: Close or Restructure Your UK Company
Options:
- Close your UK company (if no longer needed)
- Keep it as a holding company (for UK assets)
- Restructure to minimize UK tax exposure
Pro Tip: Work with a tax advisor to ensure a clean exit.
Step 4: Apply for UAE Residency
Get a Golden Visa (10-year residency) if you:
- Invest AED 2 million in UAE property or business
- Earn AED 30,000/month as a skilled professional
Step 5: Move Your Family
Dubai offers:
- British curriculum schools
- No income tax (more disposable income)
- Safe, family-friendly environment
Common Concerns (Debunked)
"Will I lose access to UK/EU markets?"
No. You can still sell to UK/EU customers from Dubai—often more profitably due to lower costs.
"Is Dubai just for the ultra-rich?"
No. Dubai is affordable compared to London. Office rent, salaries, and living costs are 30-50% lower.
"What about schools for my kids?"
Dubai has 250+ international schools, including top British schools like JESS, DESS, and Jumeirah College.
Tax & Legal Considerations
UK Tax Exit Rules
When leaving the UK:
- Notify HMRC of your departure
- Complete a final tax return
- Ensure you meet non-UK tax residency requirements (183-day rule)
Pro Tip: Spend less than 183 days/year in the UK to avoid UK tax residency.
Dubai Tax Residency
To be a UAE tax resident:
- Spend 183+ days/year in the UAE, OR
- Have a permanent home and spend 90+ days/year in the UAE
How Core Bridge Can Help
We've helped 100+ UK businesses relocate to Dubai. We'll handle:
- Company setup (Free Zone, Mainland, or Offshore)
- Bank account opening
- Golden Visa applications
- UK company closure (if needed)
- Tax planning to minimize exposure
Ready to make the move? Contact us for a free consultation.
The Bottom Line
2025 is the year to escape high UK taxes and relocate to Dubai. With 0% tax, world-class infrastructure, and a booming economy, Dubai offers everything UK entrepreneurs need to thrive.
Don't wait. The longer you stay in the UK, the more money you lose.
Start your Dubai journey today.