Every year, thousands of UK residents trade grey skies for Gulf sunshine. The appeal is clear: no personal income tax, year-round warmth, and a fast-growing economy that can offer opportunities hard to match at home. But the benefits that lure so many here also come with rules that not everyone understands before packing their bags.
This isn’t about getting a quick financial upgrade by avoiding tax. It’s about knowing what it really takes to become a UAE tax resident, what needs to happen back in the UK, and whether the move works for your personal circumstances.
Understanding UK Tax Residency
Moving to Dubai doesn’t automatically mean you stop paying UK tax. HMRC has strict rules for when you’re considered non-resident, and getting them wrong can be costly.
The Statutory Residence Test decides your UK tax status based on how many days you spend in the UK and your ties here. Broadly, you’re automatically non-resident if you spend fewer than 16 days in the UK in a tax year, or fewer than 46 days if you haven’t been a UK resident in the previous three years.
But it’s rarely as simple as counting days. HMRC also looks at your home, family, work, and other connections. A property you keep available, a spouse in the UK, or children in UK schools can all influence your status.
The safest route is to plan your departure carefully. When you leave, how you structure your affairs and how you live during your first year abroad all matter. A one-way ticket isn’t enough — the paperwork and timing need to match your intentions.
Setting Up UAE Tax Residency
In the UAE, tax residency is a formal legal status, separate from simply holding a visa. It means meeting specific criteria — such as living here at least 90 days a year, having a home, and making the UAE your main base — so you can be recognised as a tax resident under UAE law.
This status is mainly relevant for double taxation treaties and other international agreements, ensuring you’re not taxed twice in your country of origin. It does not mean the UAE levies personal income tax — there’s still none on salaries, rental income, or investment returns.
An Emirates ID is essential, serving as proof of residency and a requirement for almost everything from opening a bank account to signing a tenancy contract. The process can take several weeks, so factor that into your moving timeline.
If you have significant international income or assets, you’ll also need to declare your UAE tax residency to local authorities. The UAE now shares financial data with other countries, including the UK, so transparency is important.
The Practical Timeline
Most movers underestimate how long the process takes. Even with a job offer in place, the visa alone can take 4–6 weeks. Finding a property, setting up utilities, opening bank accounts, and securing your Emirates ID can easily add another month.
Before leaving the UK, you’ll need to notify HMRC, settle or transfer accounts, and manage any ongoing commitments such as UK property taxes. Employers must adjust PAYE once you’re a non-resident.
Timing matters. Leaving part-way through the UK tax year can make your final return more complicated. Some people time their move for the start of a new tax year to simplify things, though this isn’t essential.
In your first year, HMRC will look closely at your travel patterns, where your main home is, and where your personal and financial ties remain. That first-year record can set the tone for your future status.
What You Can and Can’t Keep
You don’t have to cut ties to the UK — but you do need to manage them.
UK bank accounts, investments, and property can all be kept without affecting non-residency. However, keeping a home available for personal use counts as a tie, so many expats rent out UK properties to avoid this.
UK pensions can still be accessed, though the rules for transferring them overseas are complex and have shifted in recent years. Investment income and capital gains from UK assets may still be taxed in the UK, depending on the type of asset and how long you’ve been away.
The Family Factor
Relocating with family adds complexity but also opportunity. Dubai offers excellent international schools, though fees are significant. The UAE’s lack of inheritance tax can also appeal to families thinking long-term.
Splitting residency — with one spouse in Dubai and the other remaining in the UK — often doesn’t work for tax purposes. HMRC looks at the family unit, not just the individual.
If you have children studying in the UK, they may still count as dependents for residency purposes if you support them financially. This can influence your UK ties.
Common Mistakes
The biggest misstep is failing to plan the departure properly. Leaving without notifying HMRC, skipping the final tax return, or mistiming the move can all cause trouble later.
Another common misunderstanding is assuming that holding a UAE visa automatically makes you a UAE tax resident. It doesn’t — and this misconception can create problems with double taxation treaties and reporting rules.
Lastly, don’t overlook ongoing compliance. Both countries have increasing reporting requirements, especially for international income and assets.
Professional Advice
Tax residency rules change often and carry significant consequences if misjudged — from unexpected bills to penalties and interest.
The safest approach is to work with advisers who understand both systems — a UK-based tax adviser for the exit, and a UAE-based specialist for the residency setup. The cost of advice is small compared to the risk of getting it wrong.
Is It Worth It?
For high earners, the savings can be substantial. Someone earning £200,000 in the UK could save £70,000 or more each year in tax and National Insurance. Over time, those savings will grow.
But the decision shouldn’t rest on tax alone. Dubai offers a different pace of life, a diverse professional environment, and access to a truly international market.
Handled correctly, the move can bring both immediate financial rewards and long-term lifestyle benefits — but only if you’re ready to make the UAE your home long term.
