Over the next decade, the United Arab Emirates (UAE) is projected to attract more millionaires than any other country in the world. The reason? Europe is increasing tax pressure on wealth, income, and inheritances, while the UAE offers stability and simplicity.
Europe: From Tax Havens to Fiscal Minefields
Traditional safe havens within Europe are losing their appeal. In the United Kingdom, the favoured non-dom regime has been abolished. This means wealthy residents must now pay tax on their worldwide income, plus 40% inheritance tax on their entire estate. With national debt at $3.5 trillion and no concrete growth plans, further tax increases are expected. An estimated 16,000 millionaires are projected to leave the UK in 2025.
In Switzerland, voters will decide on 30 November on a proposed federal inheritance tax of 50% on estates exceeding 50 million Swiss francs. Simultaneously, anti-money laundering rules are being tightened, and a global minimum corporate tax of 15% will come into effect from January. Simplicity is long gone.
Monaco officially still has no income tax, but property transactions now incur a 4.5% transfer tax, and new builds are subject to 20% VAT. Furthermore, the principality is now on the EU’s blacklist due to money laundering risks, leading banks to implement stricter customer due diligence.
Other European countries are also increasing pressure:
- Norway: an exit tax on unrealised gains, with a payment period of 12 years.
- Germany: up to 50% inheritance tax for distant heirs, plus income tax up to 45%.
- Portugal: abolition of the favourable non-habitual resident tax regime from 2024.
- Italy: doubling of the flat tax on foreign income for wealthy expatriates to €200,000.
From 2026, the new OECD Crypto-Asset Reporting Framework will oblige countries to automatically share information on crypto-assets, investments, and wealth structures.
The UAE: Simplicity, Stability, and Fiscal Calm
While Europe becomes more complex and expensive, the tax climate in the UAE remains extremely attractive:
- 0% income tax
- 0% tax on capital gains
- 0% inheritance tax
- Straightforward residency procedures
- Only one major tax change in the past 10 years: 9% corporate tax on profits exceeding AED 367,000 (approx. €92,000 / £79,000)
This simplicity and stability attract not only capital but also talent. A growing number of entrepreneurs, professionals, and investors are choosing to establish themselves in Dubai or Abu Dhabi, drawn by fiscal advantages, international connectivity, and a high-quality lifestyle.
The combination of rising tax pressure in Europe and the favourable policies in the UAE is driving a structural capital shift. For those seeking to preserve their wealth, privacy, and freedom, the UAE is increasingly seen as a safe and intelligent home base.
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