Abu Dhabi Leads Global Tax Attractiveness Rankings

Abu Dhabi has claimed the top spot among the world’s most tax-friendly cities, followed closely by Dubai, highlighting the UAE’s ascendancy as a magnet for affluent individuals seeking fiscally efficient jurisdictions with legal and political stability.

According to Multipolitan’s Wealth Report 2025: The Taxed Generation, the UAE capital outperformed 163 other jurisdictions globally in the newly introduced Tax Friendly Cities Index. Dubai, a longtime competitor in the global wealth migration race, secured second place, reinforcing the Emirates’ dual-city advantage in attracting high-net-worth individuals, family offices, and financial service providers.

The index evaluated cities based on statutory personal income tax rates, capital gains tax, estate duties, bilateral tax treaty networks, corporate governance transparency, and regulatory environments. Abu Dhabi scored highest due to its zero rate on personal income, minimal real estate transaction charges, and comprehensive fiscal predictability. Dubai’s proximity in the rankings reflects similar advantages, with added appeal from its financial free zones and strong expatriate infrastructure.

Multipolitan’s analysis shows that the concentration of ultra-wealthy residents in Abu Dhabi and Dubai has intensified amid global policy shifts that have introduced steeper taxes in North America, parts of Europe, and East Asia. The report identifies a growing wave of wealth migration from jurisdictions with rising levies on capital, inheritance, and cross-border income, pushing affluent families and private capital to explore neutral regimes.

Abu Dhabi’s appeal lies not only in the absence of direct taxes but also in its strategic alignment with investor expectations. The city has steadily built an ecosystem designed to welcome global wealth, including regulatory reforms to ease residency, corporate ownership, and capital flows. The implementation of the long-term Golden Visa programme, broad-based double taxation agreements, and the supportive stance of the Abu Dhabi Global Market have all contributed to the city’s emergence as a preferred domicile.

Dubai, despite sharing the tax advantages of its federal structure, gains from its international connectivity and lifestyle draw. With well-established districts such as DIFC catering to global finance and innovation, the city benefits from a wide network of professionals, legal experts, and wealth managers tailored to the needs of international investors. Its taxation benefits—such as zero capital gains tax and low property transaction fees—continue to draw entrepreneurs, fund managers, and crypto-asset investors.

The Tax Friendly Cities Index’s publication comes as global wealth dynamics are undergoing structural shifts. Policy changes in high-tax jurisdictions—including new wealth taxes in Spain, changes to the UK non-dom regime, and the introduction of minimum effective corporate tax frameworks in the EU and G20—have added complexity for private wealth planning. Multipolitan notes that cities offering transparent yet light-touch tax regimes are becoming increasingly valuable to mobile capital.

Several other jurisdictions featured in the top tier of the index, including Monaco, Singapore, and Doha, but none matched the combination of zero personal tax, governance indicators, and fiscal predictability offered by Abu Dhabi and Dubai. While some jurisdictions in the Caribbean and Eastern Europe offered comparably low personal taxes, many lacked the treaty coverage, political stability, or professional infrastructure to serve as long-term wealth bases.

The report underlines that what sets the UAE apart is its ability to blend tax efficiency with institutional depth. The presence of sovereign wealth funds, international arbitration centres, and a stable currency pegged to the US dollar were flagged as key confidence markers for international families and their advisers. Regulatory initiatives promoting transparency—such as beneficial ownership registries and adherence to OECD reporting frameworks—have further strengthened confidence without compromising the Emirates’ appeal.

Despite the introduction of a corporate tax regime for business income in 2023, the UAE has maintained its status as a tax-efficient destination for individuals. Multipolitan’s findings suggest that this measured transition, aligned with international commitments, has been received positively by both foreign investors and regulatory watchers, especially as it preserves the zero-income tax structure for individuals.

Private wealth experts quoted in the report suggest that the UAE is now positioned as the foremost non-European alternative for family offices disillusioned with traditional centres such as London, Geneva, or Luxembourg. This shift has already triggered activity across real estate, private banking, and wealth advisory sectors in both Abu Dhabi and Dubai, with multinational firms expanding operations or launching dedicated Gulf platforms.