Dubai, UAE – Dubai is topping the list of destinations for British billionaires seeking to avoid the high tax burdens of the United Kingdom, according to media reports and real estate sources.
These moves followed the Labour government’s policies and tax increases. Additionally, US tariffs led to a decline in the value of the dollar, effectively giving British buyers a discount when entering the UAE property market.
British Business and Trade Secretary Peter Kyle admitted he was concerned about some of the UK’s wealthiest people leaving the country, including steel magnate and billionaire Lakshmi Mittal, as a result of tax increases.
Kyle said the government raised taxes and closed some legal loopholes for foreign residents. This prompted half of the UK’s wealthy residents registered as foreigners to leave the country since April 2025. He noted that the issue of inheritance tax was the main driver of these movements. The tax reaches 40% in the UK, compared to no similar tax in Dubai and Switzerland.
Last year, Emirati real estate developers Binghatti and Danube established sales offices in London. They joined companies like Aldar, Damac, and Sobha, aiming to attract British investors seeking a tax and investment haven.
According to data from real estate brokerage firm Better Homes, British investments in Dubai homes jumped by 62% year-on-year in the second quarter of 2025. This made Britain the largest foreign buyer of Dubai real estate for the first time since 2023, surpassing Indian investors.
Leading real estate experts at CBRE and Knight Frank have confirmed that Dubai is among the top destinations for those leaving London. This also includes Monaco, Italy, and Switzerland, who are drawn by the attractive investment climate and low taxes.
Kyle noted that the government is seeking to recapitalize markets and prevent the emigration of talent and professionals. He also emphasized that people are coming to the UK to take advantage of opportunities in the local economy, despite the departure of some wealthy individuals.
These developments come just days before Chancellor Rachel Reeves’ second budget. It is expected to include additional taxes to close a £20 billion budget gap, which could further strain wealthy UK residents.
As these transformations intensify, Dubai appears to be emerging as a leading global hub for attracting capital and wealth. It benefits from a more flexible tax policy and greater economic stability compared to the UK. This reflects a shift in the global real estate investment landscape for the wealthy.
