The Essentials 

For many UK families moving to the UAE, preserving wealth across generations is just as important as growing it. The challenge lies not only in transferring assets but also in ensuring continuity, clarity, and governance for future decision-makers. 

ADGM and DIFC foundations are increasingly seen as the solution of choice. They provide a structured, secure, and internationally recognized framework that allows families to: 

• Protect assets 

• Simplify inheritance and succession 

• Empower heirs responsibly 

• Preserve long-term family vision 

In recent years, an increasing number of UK families moving to the UAE have looked beyond familiar shores, gravitating towards Dubai and Abu Dhabi as strategic bases for preserving and growing wealth. While the UAE’s tax-free status often steals the spotlight, its true appeal runs much deeper: world-class asset protection, flexible succession planning, investor-friendly property markets, and secure pathways to long-term residency. 

Supported by internationally recognized legal systems and adaptable ownership structures, the UAE offers a stable, transparent, and strategically located platform for both immediate relocation and multi-generational planning. Its economic resilience, global connectivity, and cosmopolitan lifestyle create an environment where wealth and quality of life can thrive in tandem. 

Let’s explore the many layers behind this migration, revealing how UK families moving to the UAE are harnessing the region’s unique advantages to safeguard assets, seize opportunities, and shape enduring legacies. 

Why are UK Families Moving to the UAE? 

1. Tax Advantage – But Not the Only Reason 

The UAE’s no personal income tax, no capital gains tax, and no inheritance tax remain powerful magnets. When compared to the UK’s high tax environment, with income tax up to 45%, capital gains up to 28%, and a 40% inheritance tax, the savings are significant. 

However, for many UK families, tax is only one part of the equation. Increasingly, they are drawn by the UAE’s ability to offer not just financial efficiency but also long-term security, flexible wealth planning, and a globally respected legal framework. 

2. Wealth Protection and Risk Management 

When relocating and investing in overseas property, one of the key considerations for UK families moving to the UAE is how to protect assets from potential risks. High-value real estate portfolios can be vulnerable to unforeseen events such as legal disputes, business-related liabilities, or creditor claims. 

In the UAE, certain corporate and holding structures available through jurisdictions like the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) offer a legal environment rooted in English common law. This framework is widely recognized internationally, making it easier to enforce contracts, manage cross-border transactions, and maintain credibility with global stakeholders. 

3. Succession and Estate Planning 

Passing wealth to the next generation is rarely a simple process, especially across borders. In the UK, inheritance can involve prolonged probate procedures, high legal costs, and significant tax liabilities. For families with international assets, these challenges multiply. 

In the UAE, legal and ownership frameworks allow for arrangements where control of an asset can change hands without the need to sell it outright, which helps reduce delays and administrative complexity. These frameworks can also be paired with governance tools such as family constitutions, trusts, or foundations to ensure that decision-making and asset management align with the family’s long-term vision. 

4. Access to the UAE Golden Visa and Lifestyle Benefits 

The UAE’s Golden Visa program grants long-term residency to property investors who meet specific thresholds, currently a minimum property value of AED 2 million. Qualifying assets can be residential or, in certain cases, commercial, provided they meet the valuation criteria and other eligibility requirements. 

This residency pathway offers a range of advantages, including: 

• Stability for the entire family, with access to world-class education and healthcare 

• Independence from local sponsorship requirements, allowing greater personal and business freedom 

• Full access to UAE banking and investment opportunities 

• Long-term planning certainty, with visas valid for up to 10 years and renewable 

For UK families moving to the UAE, the Golden Visa creates not only a secure legal foothold in the country but also the flexibility to live, work, and invest in one of the region’s most dynamic markets. 

5. Market Opportunity and Diversification 

Dubai’s property market has consistently outperformed many Western markets in recent years. Prime villa prices rose by almost 94% between 2020 and 2024, and rental yields often average 7–8%, compared to the UK’s 3–5%. 

For UK families, investing in UAE real estate offers: 

• Exposure to a fast-growing, globally attractive market 

• A hedge against volatility in the UK property sector 

• Diversification into a region with a currency pegged to the US dollar, providing exchange rate stability 

• Opportunities across both residential and commercial property segments 

6. Compliance and Global Credibility 

Ownership and holding structures available in the UAE’s ADGM and DIFC operate under internationally recognized regulatory frameworks that emphasize transparency and robust governance. These frameworks: 

• Strengthen investor confidence when engaging with global stakeholders 

• Streamline due diligence processes for banks and financial institutions 

• Ensure high standards of corporate governance and clear reporting practices 

7. Flexibility in Ownership and Control 

UAE property ownership arrangements can be tailored to accommodate different needs, such as: 

• Dividing benefits and responsibilities clearly among multiple family members 

• Allocating decision-making authority through defined voting rights 

• Allowing ownership interests to be transferred or sold without affecting the underlying property title 

How MS Can Help the UK families moving to the UAE 

At MS, we specialize in guiding families through every stage of their UAE journey, from initial exploration to full integration. Our expertise spans wealth structuring, succession planning, and residency solutions, ensuring your move is not only seamless but strategically aligned with your long-term goals. 

We combine deep knowledge of Dubai and Abu Dhabi’s regulatory landscapes with an understanding of the unique priorities of UK families. Whether it’s establishing the right corporate or ownership structure, navigating property investments, or ensuring compliance with local and international frameworks, our multidisciplinary team delivers solutions tailored to protect and grow your assets. 

The Essentials: First Corporate Tax Return Filing in the UAE 

• Deadline: 30 Sept 2025 (for FY Jan–Dec 2024). 

• Who Files: Mainland & Free Zone companies, foreign PEs, and individuals with >AED 1M turnover. 

• Rates: 0% up to AED 375K, 9% above AED 375K, 0% for Qualifying Free Zone income. 

• Penalties: AED 500/month (first year), AED 1,000/month after, plus 14% interest. 

• Key Prep: TRN active, audited/IFRS accounts, supporting docs, transfer pricing records (if relevant). 

The UAE’s introduction of Corporate Tax marks a new chapter in the country’s business landscape and 2025 is when theory turns into practice. For thousands of businesses, this year will bring their first Corporate Tax return filing in the UAE. 

Your first filing sets the tone for how your business will approach tax compliance in the years ahead. A rushed or inaccurate submission can lead to costly penalties, while a well-prepared return can protect your reputation, potential tax efficiencies, and build confidence with regulators. 

1. Key Filing Deadline 

For businesses whose financial year runs from 1 January 2024 to 31 December 2024, the first corporate tax return filing in the UAE must be submitted on or before 30 September 2025. This 9-month post-year-end window is fixed by the Federal Tax Authority (FTA). 

If your financial year does not follow the calendar year, your filing deadline will be different. Always confirm your entity’s exact due date through the EmaraTax portal. 

2. Who Must File a Return? 

You must file if you are: 

• Mainland companies operating in the UAE. 

• Free Zone companies, including those enjoying the 0% rate on Qualifying Income (must still file to maintain status). 

• Foreign companies with a Permanent Establishment in the UAE. 

• Natural persons carrying on a business, with annual turnover exceeding AED 1 million in 2024. 

3. Corporate Tax Rates to Remember 

• 0% rate on taxable income up to AED 375,000. 

• 9% rate on taxable income above AED 375,000. 

• 0% rate for Qualifying Free Zone income (subject to substance and compliance requirements). 

Even if you fall entirely under the 0% bracket, you must still file your return. 

4. Consequences of Missing the Deadline 

Failing to submit your first corporate tax return filing in the UAE on time can result in: 

Administrative Penalties: 

• AED 500 per month for the first 12 months of delay. 

• AED 1,000 per month thereafter. 

Interest Charges: 14% per year on unpaid tax, calculated monthly from the due date. 

Increased Audit Risk: Late filings can draw greater scrutiny from the FTA. 

Compliance Impact: Non-compliance may affect your ability to obtain clearances, licenses, or maintain Free Zone benefits. 

5. Essential Preparations Before Filing 

To ensure smooth submission, start working on the following now: 

A. Registration Check 

• Confirm that your Corporate Tax Registration Number (TRN) is issued and active. 

• Verify your entity is correctly listed on the EmaraTax portal. 

B. Financial Statement Readiness 

• Prepare audited (or IFRS-compliant) financial statements for the tax period. 

• Ensure they reflect all tax adjustments, such as non-deductible expenses or exempt income. 

C. Supporting Documents 

• Invoices, contracts, and bank statements. 

• Records of related-party transactions for transfer pricing compliance. 

• Proof for exemptions (e.g., qualifying investment income). 

D. Transfer Pricing Disclosures 

• If your business transacts with related parties or connected persons: 

• Prepare the Transfer Pricing Disclosure Form for submission with your return. 

• Maintain Local File and Master File documentation if applicable thresholds are met. 

Practical Tips for Your First Corporate Tax Return Filing in the UAE 

• Start Early: Leaving filing to the last week increases error risk and may delay FTA portal acceptance. 

• Use the EmaraTax Portal Efficiently: Familiarize yourself with its navigation and upload requirements in advance. 

• Plan for Tax Payment: Have funds ready to pay any tax due at the time of filing to avoid interest charges. 

• Seek Professional Support: A qualified tax partner can ensure your return is accurate, compliant, and penalty-free. 

How Can MS Help in the First Corporate Tax Return Filing in the UAE? 

Your first corporate tax return filing in the UAE is a chance to set the right compliance standards. MS handles it end-to-end: preparing accurate financials, managing EmaraTax submissions, meeting deadlines, and identifying savings opportunities. Our expertise ensures full compliance, reduces risk, and keeps you penalty-free. 

The UAE Ministry of Finance (MoF) has enacted a pivotal Ministerial Decision, introducing new guidelines for tax depreciation in the UAE on investment properties held at fair value. The decision aims to align the treatment of investment properties with Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, providing clarity and parity for property owners under the corporate tax regime. 

Tax Depreciation in the UAE for Fair Value Investment Properties: Key Highlights of the Decision 

1. Eligibility for Tax Depreciation: 
   Taxpayers who hold investment properties (excluding land) on a fair value basis, and who opt for the “realisation basis,” can now elect to deduct tax depreciation in the UAE from their taxable income. This deduction was previously only available to those using a historical cost basis. 

2. Calculation of Depreciation Deduction: 
   The annual tax depreciation allowance is set as the lower of: 

• The tax written down value of the investment property at the beginning of the Tax Period, or 

• 4% of the original cost of the investment property, 

• Calculated for each 12-month tax period, with pro-rata adjustments where applicable for partial periods. 

3. Application Across Timeframes: 
   The deduction is open to taxpayers who held investment properties before or after the introduction of corporate tax. This ensures inclusivity across different tax years, promoting continuity and fairness. 

Election Requirements and Process for Tax Depreciation in the UAE 

• Irrevocable Election Needed: 
  Taxpayers wanting to benefit from this provision must make an irrevocable election in their first tax period beginning on or after January 1, 2025, in which they hold investment property. This election will then apply to all investment properties held by the taxpayer going forward. 

• Realisation Basis Election Window: 
  Recognizing that the realisation basis is usually chosen at the start of a taxpayer’s interaction with the regime, the Decision provides an exceptional opportunity for those who have not yet opted in to do so during their initial relevant tax period. 

Tax Depreciation in the UAE for Fair Value Investment Properties: Clarity and Guidance for Property Transfers and Construction 

The Decision clarifies the precise value upon which tax depreciation in the UAE claims may be based, including scenarios where: 

• Investment property is transferred between related or unrelated (third) parties. 

• Future acquisitions of investment property not currently held by the taxpayer are also covered under the Decision. 

This explicit guidance helps ensure all taxpayers can accurately assess compliance obligations and fairly benefit from the regime. 

Ensuring Parity and Tax Neutrality 

With these changes, parity is established between: 

• Taxpayers who use historical cost and can already deduct accounting depreciation, and 

• Those using fair value accounting, who are now similarly permitted tax depreciation. 

This promotes the principles of tax neutrality and equity, ensuring a level playing field in line with international best practices in corporate taxation. 

Provisions for Claw-back and Compliance  

The new rules also define when a reversal of tax depreciation in the UAE might occur, including circumstances beyond the simple disposal of an investment property. This ensures taxpayers remain aware of potential liabilities and maintain sound records for compliance purposes. 

The Ministry’s commitment is clear: to foster an equitable and transparent tax climate in the UAE, offering certainty for investment property owners and enhancing the country’s appeal for both local and international investors.