Client moving to the UAE
A move to the UAE can create an attractive new financial position, but it can also expose weaknesses in pensions, investments, banking and long-term planning.
The key question is not simply what the client should do after arriving.
It is what should be reviewed before the move, what can remain in place, and how the client's new residence fits with their longer-term retirement and wealth strategy.
Josh Clancey works alongside tax advisers, lawyers, immigration specialists, accountants and other professionals where a client's relocation to the UAE creates wider financial-planning decisions.
The financial-planning issues often start before the client arrives
A relocation can affect much more than salary and day-to-day banking.
Depending on the client's existing arrangements, the planning may need to consider:
- tax residence in the country being left
- pensions and retirement accounts
- investment-platform restrictions
- existing ISAs or other tax-advantaged accounts
- employer benefits
- end-of-service arrangements
- life and protection cover
- currencies
- property and mortgages
- beneficiary nominations
- retirement destination
- future repatriation
For UK-connected clients in particular, physically leaving the UK does not by itself determine UK tax residence.
Residence is assessed under the Statutory Residence Test, and split-year treatment may apply in some circumstances.
The tax adviser should establish the residence position. Financial planning can then be built around that conclusion.
Common planning areas when a client moves to the UAE
UK pensions
A UK pension can usually remain in the UK when the member becomes non-resident.
The more important questions are whether the existing arrangement remains suitable, how it will eventually provide retirement income and how it fits alongside assets accumulated in the UAE.
Existing investments
A change of residence can affect whether an investment platform continues to service the client and whether the existing portfolio remains appropriate.
The tax treatment of the investments in the country being left may also need specialist review.
Retirement planning
The UAE may be a temporary assignment or the start of a long-term international lifestyle.
That distinction matters when deciding where to accumulate wealth and what currencies the eventual retirement plan should support.
Banking and liquidity
The client may need a combination of UAE banking, retained home-country accounts and accessible emergency capital.
That should be considered alongside investment planning rather than separately.
Employer benefits and end-of-service arrangements
A UAE remuneration package may include employer benefits that differ materially from the client's previous pension and protection arrangements.
These need to be incorporated into the wider plan rather than treated as standalone benefits.
Beneficiaries and estate planning
A move can leave the client with assets, beneficiaries and legal arrangements across several jurisdictions.
The relevant legal advisers should establish the succession position, while the financial plan can address pensions, beneficiary nominations, insurance and liquidity.
Questions to ask before the move
When will the client's tax residence change?
The answer should come from the appropriate tax adviser and may depend on more than the physical departure date.
What financial accounts can remain open?
Existing banks, investment platforms and pension providers should be checked for non-resident servicing restrictions.
Which existing tax wrappers change once the client becomes non-resident?
The client may be able to retain some existing arrangements while losing the ability to make further contributions.
What will replace the client's previous pension provision?
A higher tax-free or lower-tax salary is not automatically a retirement strategy.
Does the client have sufficient protection?
Employer death-in-service, medical or income-protection benefits may differ substantially from those available in the previous country.
Which currency should future wealth be built in?
This depends on where the client ultimately expects to spend the money rather than simply where they currently earn it.
Is the UAE move expected to be temporary?
A future return to the UK, US or another country can materially affect how investments should be structured today.
Useful resources for advisers working with clients moving to the UAE
The Professional Adviser's Guide to Clients Moving to the UAE
A practical guide to the key financial-planning areas that may need to be reviewed before and after relocation.
Client Moving Country Checklist
A practical checklist covering pensions, investments, banking, protection and other arrangements that may need review around an international move.
The Professional Adviser's Guide to Cross-Border Financial Planning
A broader guide to financial planning where residence, pensions, investments and retirement span jurisdictions.
The Professional Adviser's Guide to International Executive Financial Planning
A useful resource where the move involves a senior executive, relocation package or international compensation.
UAE End-of-Service Benefits and Executive Departures
A technical brief covering UAE employment benefits and the planning considerations around eventual departure.
Cross-Border Referral Checklist
A practical resource for identifying when a relocating client may need wider financial-planning input.
The UAE tax position does not remove the need for planning
The UAE does not generally tax wages, personal investment income or real-estate investment income as business income under its Corporate Tax regime.
For natural persons, UAE Corporate Tax can apply where they conduct a business or business activity in the UAE and total turnover from those activities exceeds AED 1 million in a calendar year.
That distinction is important.
A client moving to the UAE should not assume that every source of income or every business activity is outside the tax system.
Equally, the UAE position does not determine the tax consequences in the country the client has left.
The relevant tax advisers should establish both sides of the position before major restructuring decisions are made.
Working with the professional team before and after the move
A well-coordinated relocation can involve several advisers.
For example:
- the immigration adviser establishes the client's visa and residence position
- the tax adviser confirms departure residence and ongoing tax exposure
- the lawyer advises on estate and succession matters where required
- the employer or HR team confirms remuneration and employee benefits
- Josh reviews pensions, investments, protection, cash flow and long-term retirement planning
Where the client is British, the Statutory Residence Test may need to be considered carefully.
HMRC assesses each tax year separately and considers factors including days in the UK, work patterns and UK connections. Split-year treatment can apply in specified circumstances.
Financial recommendations should therefore be based on the client's established residence and tax position rather than assumptions based solely on the date they board the flight to Dubai.
When should the referral happen?
The strongest time for financial-planning input is often before the move, particularly where the client has significant pensions, investments or assets in the country being left.
A pre-departure discussion can help identify issues that are easier to address while the client is still resident there.
Financial planning can also be useful shortly after arrival, once the employment package, banking and expected duration of residence are clearer.
Have a client preparing to move to the UAE?
If a client's relocation raises questions around pensions, investments, banking, retirement, protection or internationally held assets, an initial discussion can help establish where financial planning may fit alongside the existing tax, legal and immigration advice.