Zero taxes and luxury galore: Dubai attracts millionaires

Dubai has become the world’s new playground for the ultra-wealthy. As luxury brands race to stake their claim, a record wave of millionaires—especially from the West—is settling in, drawn by zero income tax, political stability, and a lifestyle that celebrates extravagance without apology.

The United Arab Emirates—especially the sparkling metropolis of Dubai—has long appealed to the region’s wealthy elites. But according to recent consultancy data, an increasing number of affluent Westerners are now joining them.

Henley & Partners, a global consultancy specializing in investment migration, estimates the UAE will attract a record 9,800 millionaires this year—more than any other country in the world.

A gateway between Europe and Asia, Dubai is one of the world’s busiest trading hubs, home to a major international airport and a thriving seaport. Among its 3.5 million residents—90% of whom are expatriates—low-wage workers, social media influencers, and multimillionaires coexist in stark contrast.

Many of the wealthy newcomers feel penalized in their home countries. “They are taxed more, scrutinized more, and offered less,” said Mike Coady, head of Skybound Wealth Management, which advises high-net-worth clients in the region.

“In Dubai, wealth is normalized,” he said, contrasting it with what he called the “growing rhetoric against the rich” elsewhere. “In London, my clients whisper when they talk about their income. Here, they can live freely.”

“Better lifestyle”

Max Maxwell, CEO of Paddco Real Estate, who relocated from the U.S., shared a similar view in the podcast Building Wealth With No Borders. He said Dubai “offers a better way of life” for the same income compared to other financial centers.

Currently home to 81,200 millionaires and 20 billionaires, Dubai ranks among the world’s top 20 wealthiest cities.

Beyond tax exemptions, Dubai boasts low crime rates, political stability, and unfettered access to luxury services and goods. It also offers a business-friendly legal environment with limited bureaucracy.

“The region allows you to do business with very little red tape,” added Philippe Amarante, director at Henley & Partners.

The UAE’s “golden visa” program, which grants ten-year residency to wealthy investors and skilled professionals, has further increased Dubai’s appeal.

But critics have noted deep inequality. While affluent expatriates enjoy a life of privilege, poorly paid migrant workers—who make up the backbone of Dubai’s economy—often face exploitation. Human Rights Watch has warned of “widespread abuse” among this population.

“Buying an entire building”

Dubai’s property market is booming. Luxury villas, gleaming skyscrapers, artificial islands, and exclusive residential towers dominate the skyline.

According to real estate consultancy Knight Frank, 435 homes valued at $10 million or more were sold in Dubai last year—more than in New York and London combined. “It’s the most active market for ultra-luxury real estate,” said Faisal Durrani, a partner at the firm.

Durrani said wealthy families from global tax havens—including Monaco and Switzerland—are increasingly moving their businesses, family offices, and even schools to Dubai. “They’re not just buying homes anymore,” he said. “They’re looking for $100 million apartments—and in Dubai, for that price, you can buy an entire building.”

Mike Coady described most of his clients as professionals in their thirties or forties—tech founders, family business heirs, consultants, and fund managers. One of them, a 42-year-old British tech entrepreneur, moved to the UAE fearing capital gains tax on the sale of his company.

Henley & Partners predicts the U.K. will lose a record 16,500 millionaires this year—many likely headed to the Gulf.

Still, the UAE has had to face global scrutiny. In 2022, the country was placed on an international “grey list” due to concerns over opaque financial activity and an influx of Russian capital after the invasion of Ukraine.

In response, the government cracked down on financial crime, extraditing several fugitives and drug traffickers, which ultimately led to its removal from the grey list.

By Aya Iskandarani