Tax Residency in Dubai: The Reason Lakshmi Mittal and Other Billionaires are Choosing the Emirate in 2025

In the dynamic global economic landscape, choosing tax residency in Dubai has become a strategic move for high-net-worth investors and entrepreneurs. The recent news of industrial magnate Lakshmi Mittal, founder of ArcelorMittal and one of the world’s richest men, relocating from the UK to Dubai, is not an isolated event but rather the tip of the iceberg of a growing trend. This article explores the reasons behind this capital migration, analyzing the attractive advantages Dubai offers and why it is positioned as a preferred destination for those seeking to optimize their tax and personal situation.

The Phenomenon of Capital Migration: Why Dubai?

In a world where tax policies are increasingly complex and variable, especially in traditional economies, high-net-worth individuals (HNWIs) are seeking jurisdictions that offer stability, predictability, and a favorable environment for the preservation and growth of their wealth. Dubai has emerged as an undisputed leader in this arena, not only for its fiscal policies but for a unique combination of factors that make it a magnet for talent and capital.

The pursuit of a more advantageous tax residency is not merely a matter of avoidance, but of strategic planning and efficiency. Entrepreneurs and investors meticulously evaluate where their assets can be managed most effectively, and where they can secure a lasting legacy for future generations.

Lakshmi Mittal: An Emblematic Case Study of Tax Residency in Dubai

Lakshmi Mittal’s decision to move his primary residence to Dubai is a powerful testament to the incentives the emirate offers. With an estimated fortune of over 20 billion dollars, Mittal is not just an entrepreneur; he is a symbol of global success. His move, according to reports, is primarily motivated by the UK’s inheritance tax, which can amount to up to 40%.

Mittal’s concern is not unique. An advisor familiar with his plans was quoted saying:

“It was not income tax (or capital gains) that was the problem. The problem was inheritance tax. Many wealthy individuals from abroad cannot understand why all their assets, wherever they are in the world, should be subject to inheritance tax imposed by the UK Treasury. People in this situation feel they have few options but to leave and are sad or angry about doing so.”

This sentiment resonates with many others. For someone with globally distributed assets, the absence of an inheritance tax in Dubai translates into significant wealth preservation, a decisive factor in long-term estate planning. Mittal already owned a mansion in Dubai and has invested even further in real estate developments in the emirate, solidifying his commitment to the region.

Beyond Mittal: Other Names Choosing Tax Residency in Dubai

Lakshmi Mittal’s case is part of a broader trend. Numerous prominent figures have opted for Dubai in recent years, seeking a combination of tax advantages and an unrivaled lifestyle. Among them are:

• John Fredriksen: The Norwegian shipping magnate, who also moved his tax residency to Dubai.
• Herman Narula and Nik Storonsky: Co-founders of successful tech companies like Improbable and Revolut, respectively, who have also expressed concerns about tax changes in the UK and have relocated their operations and residency to Dubai.

Even investors like Christian Angermayer, who moved to Switzerland, have cited changes in tax policies as a “fatal blow” to the UK, highlighting capital’s sensitivity to perceived unfavorable tax environments. The choice of Dubai or Switzerland by these individuals underscores the importance of a stable and attractive tax framework for global capital.

The Tax Advantages of Residency in Dubai: Beyond Extreme Wealth

While the cases of billionaires are striking, the tax advantages of establishing tax residency in Dubai are equally attractive for a broad spectrum of international entrepreneurs and investors, regardless of the size of their assets.

Zero Taxation: An Undeniable Appeal

The fundamental pillar of Dubai’s tax appeal is its zero-taxation system in multiple areas:

• Personal Income Tax: The United Arab Emirates does not impose personal income tax, meaning that income generated by individuals is not subject to direct government levies.
• Capital Gains Tax: Gains obtained from the sale of assets, such as properties or shares, are not subject to capital gains taxes.
• Inheritance and Gift Tax: The absence of inheritance tax in Dubai is a crucial factor for estate planning, allowing the transfer of assets to future generations without a tax burden.
• Property Tax: There is no annual property tax. Only an initial registration fee applies when purchasing a property.

Although a 9% corporate tax has been introduced for companies with profits exceeding certain thresholds, and there is a 5% VAT, these levels remain considerably lower than in most developed jurisdictions, maintaining Dubai’s status as a comparative tax haven. For a deep understanding of this system, we invite you to consult our detailed guide on Dubai Taxes: The Ultimate Guide to 0% Taxation.

Stability and Economic Growth

Beyond taxes, Dubai offers a robust and constantly growing business environment. Its diversified economy, first-class infrastructure, and strategic location as a bridge between East and West make it an ideal hub for companies with global ambitions. The Emirati government’s forward-thinking vision and commitment to innovation provide a framework of stability highly valued by international investors.

Beyond Taxes: A World-Class Lifestyle

Choosing tax residency in Dubai is not just a matter of numbers; it’s also a lifestyle choice. The emirate offers an exceptional quality of life, characterized by:

• Safety: Dubai is one of the safest cities in the world, with an extremely low crime rate.
• Luxury Services: From exclusive residences to top-tier leisure and cultural options, Dubai spares no effort in offering the best. To explore more about life in the emirate, visit our section on Life in Dubai: Leisure, Culture, Safety, and Curiosities.
• Modern Infrastructure: Excellent transport connections, state-of-the-art healthcare facilities, and an international education system.
• Cosmopolitanism: A multicultural society where people from all over the world coexist harmoniously, offering an inclusive and dynamic environment.

How to Establish Your Tax Residency in Dubai: Key Steps

For those who, like Lakshmi Mittal, see Dubai’s potential for their wealth and future, the process of establishing tax residency in Dubai involves several key steps:

1. Obtain a Residence Visa: This can be achieved through various avenues, such as real estate investment, company formation, or an employment contract. We recommend reviewing our 2025 Visa Guide to understand the available options.
2. Establish Physical Presence: This involves renting or purchasing a property in Dubai.
3. Comply with Stay Requirements: Generally, a minimum of 90 days per year in the UAE is required to maintain tax resident status.
4. Open a Bank Account: Essential for personal and business financial management.

Careful planning and expert guidance are essential to navigate these processes and ensure a smooth transition.

Conclusion

Lakshmi Mittal’s move to Dubai is a powerful reminder of how the tax and lifestyle decisions of the world’s most influential entrepreneurs and investors are shaping the global landscape. Dubai, with its attractive zero-taxation policy in key areas like inheritance tax, its economic stability, and its world-class quality of life, is solidifying its position as a strategic hub for wealth and talent. If you are an entrepreneur or investor considering optimizing your tax and personal situation, establishing your tax residency in Dubai could be one of the smartest decisions you make in 2025.

At mydubaiway.com, we are experts in facilitating the relocation process to Dubai. From obtaining visas to company formation and tax planning, our team is ready to offer you personalized guidance and ensure a successful transition. Don’t wait any longer to discover the opportunities Dubai offers you. Contact us today to start your journey towards a new life of success in the emirate.