Dubai is frequently cited as a beneficiary, thanks to its zero-tax regime and business-friendly environment. Research by Henley & Partners projects a steady increase in the relocation of wealthy individuals to low-tax jurisdictions, with Dubai seeing notable growth in HNWI arrivals in recent years.

However, the reasons behind this trend are not universally agreed upon. As highlighted in a recent Financial Times article, many argue that despite higher taxes, HNWIs often remain in cities like London, New York, and Paris due to their deep cultural, social, and family ties, particularly when it comes to education. Knight Frank studies suggest that while tax is a factor, it is not the sole driver of relocation decisions. Family, quality of life, and global access are equally important considerations.

Interestingly, while tax rates can have a more immediate impact on middle-income individuals, the ultra-wealthy often have access to sophisticated tax planning strategies that allow them to minimise their tax burden. This may further explain why HNWIs don’t always make decisions based purely on tax rates.

In the case of Dubai, many are relocating due to excellent job opportunities across a growing number of sectors within a booming economy. Ultimately, the evidence for a mass "tax exodus" remains mixed and lacks consistent data.

I’d be interested to hear your first-hand experiences and views on this topic.