More than 11,000 British entrepreneurs and professionals relocated or opened companies in Dubai in the first ten months of 2025 alone — the highest number ever recorded. Completing a business setup in Dubai is now the #1 wealth-preservation and lifestyle-upgrade move for UK founders, freelancers, and high earners who are tired of 45 % income tax, 20 % VAT, and London’s endless grey skies. Here’s the unfiltered 2025 comparison no one in London wants you to read.
Tax Reality: UK vs. Dubai in 2025
| Tax Type | London (UK) | Dubai (Free Zone) | Annual Saving on £500k profit |
| Personal income tax | 45 % + 2 % NI | 0 % | £235,000 |
| Dividend tax | Up to 39.35 % | 0 % | £150,000+ |
| Corporate tax | 25 % (or 19 % small profits) | 0 % | £125,000 |
| Capital gains tax | 20–28 % | 0 % | Unlimited |
| VAT on services | 20 % | 5 % (reclaimable on exports) | 15 % margin |
A UK founder earning £500k profit after costs keeps ~£245k in London. The same person in Dubai keeps the full £500k.
Cost of Living & Lifestyle: London vs. Dubai 2025
| Expense | London (Zone 1–2) | Dubai (Premium areas) | Monthly Difference |
| 2-bed apartment rent | £3,500–6,000 | £2,200–3,800 | –£1,500 |
| International school (per child) | £2,500–4,500 | £1,500–2,800 | –£1,200 |
| Eating out & groceries | £900–1,400 | £600–1,000 | –£400 |
| Annual sunshine days | 1,633 hours | 3,500+ hours | Priceless |
| Safety ranking | Higher crime | Top 5 safest cities | Priceless |
You literally live better for 40–60 % less.
Company Setup Speed & Cost
| Item | UK Limited Company | Dubai Free Zone LLC |
| Total setup cost | £1,500–4,000 | AED 17,999–35,000 (~£3,800–7,400) |
| Time to trade | 1–5 days | 12–21 days (incl. visa) |
| Residence visa included | No | Yes (3–10 years) |
| Corporate bank account | 1–3 weeks | 7–18 days |
The Exact 2025 Path Most UK Expats Follow
- Book 10-day trip on visa-free entry (UK passport)
- Use Meydan/IFZA/SPC package with bundled Golden Visa
- Inject AED 1 million (~£210,000) → 10-year Golden Visa for family
- Rent or buy Palm Jumeirah/Downtown villa
- Redirect all future UK contracts to new Dubai company
- Cancel UK self-assessment → become UAE tax resident in 183 days
Average time from “idea” to “moved”: 6–10 weeks.
Banking & Payments: Better in Dubai
UK banks freeze accounts for “high-risk” sectors. Dubai banks actively court UK expats:
- Emirates NBD & HSBC Premier waive minimum balances for first 12 months
- Wio Bank gives instant IBAN + Apple Pay corporate card
- Crypto-friendly accounts now standard
Real 2025 British Success Stories
- London fintech founder → sold company for £28M → paid zero CGT in Dubai
- Manchester e-commerce brand doing £9M/year → saved £1.4M in tax in first 12 months
- Surrey family with property portfolio → moved rental income to Dubai → zero inheritance tax risk
The numbers no longer lie. For any UK founder, freelancer, or investor earning above £150k–200k per year, staying in Britain in 2025 is effectively volunteering to give away 40–50 % of your money and 50 % of your sunshine.
