A Practical Guide for UK Leavers and Returning Expats Considering the UAE
In recent years, thousands of professionals and business owners have packed up in the UK and headed overseas. At the same time, many British expats who once left the Middle East are now considering a return. If the UAE is on your radar, you are in good company. With its tax-friendly structure, strong infrastructure, and pro-business policies, the country continues to attract entrepreneurs, consultants, investors, and remote founders from across the UK.
Here is what UK leavers and returning expats should know before setting up in the UAE.
Why the UAE Appeals to UK Entrepreneurs
The UAE offers several advantages that stand out for UK residents:
• Zero personal income tax
• Strategic global location between Europe, Asia, and Africa
• Stable currency (AED pegged to USD)
• Modern banking and infrastructure
• Growing startup ecosystem and investor interest
For many UK leavers facing rising taxes, regulatory pressure, or high operating costs at home, the UAE presents a clean slate. Returning expats often find the business environment even stronger than when they first lived here.
Residency and Visa Options
Before forming a company, you must secure the correct residency status. Business owners typically apply through:
• Free zone company formation
• Mainland company setup
• Investor or partner visas
• Freelance permits (in select free zones)
If you previously lived in the UAE, your old residency will not automatically reactivate. A fresh application is required. The right structure depends on your business activity, client base, and long-term plans. Contact us at Consult Kumar for professional company formation in Dubai so we can assess your goals and recommend the correct path from the outset.
Free Zone vs Mainland – The Difference
One of the biggest decisions UK entrepreneurs face is choosing between a free zone and mainland setup.
Free Zones
• 100% foreign ownership
• Straightforward registration process
• Ideal for international trading, consultancy, e-commerce, and digital services
• Office requirements vary (from flexi-desk to full office space)
Mainland Companies
• Ability to trade directly within the UAE market without restrictions
• Access to government contracts
• Wider scope for certain activities
Both options now allow full foreign ownership in most sectors, but licensing rules differ. Making the wrong choice can create unnecessary restrictions later.
Tax Considerations for UK Leavers
Leaving the UK does not automatically end your UK tax obligations. Your residency status with HMRC must be properly assessed under the Statutory Residence Test.
Key points to consider:
• Notify HMRC using form P85 (if applicable)
• Understand split-year treatment
• Review capital gains exposure before departure
• Consider timing for dividend payments or asset disposals
The UAE currently imposes 0% personal income tax. However, corporate tax at 9% applies to certain profits above the threshold. Structuring your business correctly from day one is essential to remaining compliant. Professional advice in both the UK and the UAE ensures you avoid unexpected liabilities.
Banking in the UAE
Opening a corporate bank account in the UAE requires preparation. Banks conduct thorough due diligence, especially for new residents.
You will typically need:
• Valid UAE residency visa
• Emirates ID
• Trade license
• Office lease agreement
• Clear business plan
• Source of funds documentation
Cost of Living and Practical Relocation Planning
While business costs can be lower than in the UK, lifestyle expenses must be factored in.
• Housing: Rental prices vary by emirate and community. Dubai and Abu Dhabi command higher rents compared to other emirates.
• Education: International school fees are a major expense for families.
• Healthcare: Private health insurance is mandatory for residents.
Returning expats may notice price shifts since their last stay. Planning ahead prevents budget shocks during the first year.
Cultural and Business Environment
The UAE remains relationship driven. Face-to-face meetings still carry weight, even in an increasingly digital market.
Expect:
• Fast-paced decision-making
• High expectations of service quality
• Strong competition in saturated sectors
• Significant opportunity in niche or specialized services
British business culture generally integrates well in the UAE, but understanding local regulations and licensing requirements is critical. Certain professional activities require approvals from external authorities.
Popular Business Activities for UK Expats
UK leavers and returnees frequently establish:
• Management consultancy firms
• Marketing and digital agencies
• IT and software development companies
• E-commerce trading businesses
• Property investment vehicles
• Professional services firms
The UAE’s strong logistics network also supports product-based businesses importing from Europe or Asia.
Returning Expats: What Has Changed?
If you lived in the UAE several years ago, you may notice:
• Introduction of corporate tax
• VAT implementation
• Expanded visa categories (including long-term residency options)
• Increased compliance requirements
• Improved digital government services
The business environment is now more structured and transparent. While compliance has increased, processes are generally clearer and better regulated. Visit our blog for more information on UAE Corporate Tax in 2026.
The Value of Professional Formation Support
Setting up a company in the UAE is straightforward in principle. In practice, small missteps can lead to:
• Delays in licensing
• Rejected bank applications
• Incorrect visa quotas
• Unnecessary office commitments
• Unexpected compliance obligations
Since 2010, Consult Kumar® has been empowering ambitious entrepreneurs to establish their presence in the UAE’s thriving market. Our expert team is here to streamline the process and guide you with ease. We provide a full range of professional business services, including company formation in Mainland, Free Zones, Offshore, and International setups. No matter if you’re a UK leaver unfamiliar with UAE regulations or a returning expat, we assess your objectives, recommend the right jurisdiction, coordinate licensing, manage visa applications, and assist with banking. With Consult Kumar®, you save time, reduce risk, and gain the confidence to succeed.
