How to Move to Dubai from the UK: Tax, Residency & Setup

To live in Dubai you need a residency visa. There are several routes depending on your circumstances. The most common for business owners is to establish a company in a UAE free zone and obtain a residency visa through that company. Free zone company formation is quick, typically taking 2-4 weeks, and costs vary between 15,000 and 50,000 AED annually depending on the free zone and licence type. Popular free zones for UK entrepreneurs include DMCC, DIFC, DAFZA and IFZA. The Golden Visa programme offers 10-year residency for investors (minimum 2 million AED in real estate or a qualifying investment), entrepreneurs, specialised talent and high achievers. The Green Visa provides 5-year self-sponsored residency for freelancers and skilled professionals. For those not setting up a business, a remote work visa (Virtual Working Programme) allows you to live in Dubai while working for an overseas employer. Each visa route has different implications for your tax position. To be treated as UAE tax resident, you should obtain an Emirates ID, establish genuine presence in the UAE (the new UAE tax residency rules require either 183 days of presence or 90 days with certain additional conditions), and ideally apply for a Tax Residency Certificate from the Federal Tax Authority.

If you are running a business, you will likely set up a company in one of Dubai's many free zones or on the mainland. Free zone companies offer 100% foreign ownership, 0% corporate tax (subject to conditions), simple incorporation procedures and the ability to sponsor your own residency visa. However, they are generally restricted from trading directly with the UAE domestic market — for that, you need a mainland licence. Mainland companies have historically required a local partner holding 51% of shares, but recent reforms have opened full foreign ownership for most activities. The choice between free zone and mainland depends on your business model, clients and whether you need to trade locally. From a UK tax perspective, where you incorporate matters. If you are leaving the UK and your new company is managed and controlled from Dubai, it should not be treated as UK-resident. But if you continue to make key decisions while in the UK (even during visits), HMRC could argue that the company is UK-resident by virtue of its central management and control. The safest approach is to ensure all board meetings, contracts and strategic decisions are made in the UAE, and to document this carefully.

Opening a bank account in the UAE is straightforward for residents, though the process has become more compliance-heavy. Major banks include Emirates NBD, Mashreq, ADCB and the international private banks (HSBC, Standard Chartered, Julius Baer). You will need your Emirates ID, visa page, proof of income or business, and a minimum deposit that varies by bank. For corporate accounts, expect 2-6 weeks for onboarding. Housing in Dubai operates on an annual lease or purchase basis. Rents are typically paid in 1-4 cheques per year. Popular areas for British families include Dubai Marina, JBR, Arabian Ranches, Emirates Hills and the newer communities in Dubai Hills and Mohammed Bin Rashid City. A three-bedroom villa in a good community typically costs 250,000-500,000 AED per year in rent. Healthcare is private and insurance-based. Most employers and free zones provide or require health insurance. Schools follow various curricula (British, IB, American) and fees range from 30,000 to 100,000 AED per year. Driving is on the right side of the road, and you can convert your UK licence to a UAE licence without a test. The cost of living in Dubai is comparable to London in many categories, though there is no income tax deduction from your earnings, which makes a significant practical difference to your net disposable income.

Moving to Dubai does not automatically make you non-UK resident. You must satisfy the Statutory Residence Test, which means managing your UK day count and ties carefully. The UAE's zero-tax environment makes it a prime target for HMRC scrutiny, so your record-keeping and compliance must be exemplary. You should complete HMRC form P85 when you leave, file a self-assessment return for the year of departure, and consider applying for split-year treatment if you leave part-way through a tax year. UK-source income (rental income, pensions, employment income for UK workdays) remains taxable in the UK even after you leave. The UK-UAE double tax agreement provides some relief but does not eliminate all UK tax obligations. Capital gains on UK residential property are taxable regardless of your residence status. And the temporary non-residence rules mean you should plan to remain outside the UK for at least five complete tax years if you have realised or plan to realise significant gains. We strongly recommend engaging a cross-border tax adviser who understands both the UK departure rules and the UAE's evolving tax framework to ensure your move is structured correctly from day one.