Abu Dhabi and Dubai Crowned the World’s Most Tax-Friendly Cities

In the freshly released 2025 Tax-Friendly Cities Index, Abu Dhabi and Dubai top the leaderboard among 164 global cities—securing first and second place respectively. The report, derived from Multipolitan’s “Wealth Report 2025: The Taxed Generation,” assesses destinations based not only on tax rates but also legal stability, treaty coverage, property fees, and investor confidence

Why Abu Dhabi and Dubai Shine

Abu Dhabi earns its #1 spot thanks to its zero personal income tax, minimal property transfer fees, and a rock-solid legal system that inspires investor trust Gulf NewsKhaleej Times.

Dubai, trailing closely at #2, boasts exceptional international connectivity, robust treaty networks, and regulatory clarity, all bolstered by the UAE’s broader tax-free environment Gulf NewsEconomy Middle East.

What It Means for Global Wealth Migration

This ranking isn't symbolic—it's substantiated by powerful trends. The Henley Private Wealth Migration Report 2025 anticipates about 9,800 millionaires will relocate to the UAE this year alone, bringing an estimated US $63 billion in wealth Economy Middle East. In parallel, Knight Frank’s 2024 Wealth Report highlights that over 4,500 ultra-high-net-worth individuals recently moved to Dubai, drawn by visa incentives, luxury lifestyle, and stability-oriented wealth preservation Khaleej Times.

This influx reinforces the GCC’s (Gulf Cooperation Council’s) dominance in fiscal attractiveness: seven GCC cities—Manama, Doha, Kuwait City, Riyadh, and Muscat among them—rank among the global top 20 for tax-friendliness Economy Middle EastThe Times of India.

Economy by the Numbers

Dubai itself hosts approximately 81,200 millionaires, including 20 billionaires, securing its place among the top 20 wealthiest cities globally Gulf News. Rising migration of affluent individuals underscores the UAE’s pull as a wealth magnet in an increasingly taxing world.