Taxed, Tied, and Treading Water?
Dubai Offers the Exit Strategy.
Problems of Running a Business in the UK—And How Dubai Solves Them
As UK founders face rising costs, shrinking incentives, and mounting bureaucracy, Dubai has emerged as a strategic alternative—offering tax efficiency, global access, and a frictionless business environment. Here is a breakdown of 12 key challenges in the UK, and how Dubai flips the script.
1. High and Increasing Taxes
UK: Corporation tax rose to 25%, CGT thresholds were slashed, and Entrepreneurs’ Relief was diluted.
Dubai: Zero personal income tax, and corporate tax only applies above AED 375,000 (£80k)—with full exemptions for small businesses.
2. Complex Regulatory Burden
UK: GDPR, IR35, HMRC audits, and ever-changing compliance rules drain time and resources.
Dubai: Streamlined licensing, especially in Free Zones, with clear digital portals and minimal red tape.
3. Costly Employment Regulations
UK: Rising National Living Wage, auto-enrolment pensions, and rigid dismissal laws increase overheads.
Dubai: Flexible employment contracts, no payroll tax, and leaner HR compliance.
4. Shrinking Public Services
UK: £4.8 billion cut from welfare, £3.6 billion from education and councils—impacting infrastructure and talent pipelines.
Dubai: World-class infrastructure, elite education, and healthcare—often at lower cost than London.
5. Limited Global Positioning
UK: Post-Brexit trade friction and slower growth (1.1% forecast) limit international expansion.
Dubai: 5.1% projected growth, strategic location between East and West, and access to emerging markets.
6. Property Costs and Taxation
UK: Stamp duty, council tax, and capital gains on property disposals erode returns.
Dubai: No property tax, low transaction fees, and high-yield rental markets.
7. Bureaucratic Banking and Finance
UK: Slow onboarding, risk-averse lending, and compliance-heavy banking.
Dubai: Fast account setup, crypto-friendly options, and global banking access.
8. Brand Fatigue and Saturation
UK: Crowded markets, declining consumer trust, and limited brand differentiation.
Dubai: Fresh market energy, prestige positioning, and appetite for innovation.
9. Talent Drain and Emigration
UK: Over 10,000 millionaires left in 2024—taking jobs and capital with them.
Dubai: Magnet for global talent, with residency options for founders, investors, and skilled professionals.
10. Punitive Exit Environment
UK: Business sales trigger high CGT, with few reliefs remaining.
Dubai: No CGT, enabling clean exits and reinvestment into new ventures.
11. Media and Cultural Hostility
UK: Entrepreneurs often face scepticism, media scrutiny, and political backlash.
Dubai: Pro-business culture, founder-friendly media, and government support for innovation.
12. Lifestyle Trade-Offs
UK: High cost of living, safety concerns, and declining public morale.
Dubai: Ranked one of the safest cities globally, with luxury living, clean streets, and zero income tax.
CONTACT US
Alex McMillan
alex@successmoves.co.uk
+44 7525916574
Paul Leppard
paul.leppard@successmoves.co.uk
+44 7525224929
David Guy
david.guy@successmoves.co.uk
+44 7870180081