Tax Hikes May Lead UK Residents to No Tax UAE and Low Tax Countries

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(DUBAI, UAE) -- Many professionals in the UK may be leaving soon to avoid the new 50 percent tax rate that will be inaugurated in April, according to a survey by Withers, an international law firm. That could be good news for real estate in the tax free UAE and other low tax countries.

The new rate affects people with the kind of high income that can be earned in banking, insurance, executive search, and accounting. That means, "somebody with a personal income in excess of £200,000 (AED 1.2 million) will have to pay £5,000 (AED 30,000) more per year in tax. That's a very strong incentive to relocate to lower or tax-free environments such as the UAE," said Mohammed Nimer, CEO of MAG Group Property Development.

The survey was carried out during a conference on comparative tax and lifestyle advantages of staying in the UK or moving abroad. Switzerland was selected by 63 percent of respondents. The Channel Islands pulled 13 percent of the vote with the UAE, Hong Kong, Monaco, and Singapore also mentioned.

"Obviously all of these countries have low tax regimes with the exception of the UAE which obviously has a zero income tax rate. Residential and commercial real estate in places such as Dubai will benefit from this," Nimer explained.

Moreover, with higher taxes likely in European countries with the highest deficits such as Portugal, Ireland, Greece, and Spain, said Nimer, " the UK exodus might just be the thin end of the wedge if tax rates rise significantly across the Eurozone."

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