Across Europe, governments are quietly reshaping the fiscal landscape. Taxes on wealth, inheritance, and property are climbing, while long-standing residency incentives are disappearing. For many high-net-worth individuals, these shifts are more than policy changes, they represent a fundamental rewriting of the rules of wealth preservation and intergenerational planning.
Meanwhile, the United Arab Emirates is emerging as the world’s premier wealth magnet, offering zero personal income tax, no inheritance tax, and a welcoming residency framework. The contrast could not be clearer: Europe tightens its grip, while the Gulf polishes its welcome mat.
Rising Taxes Across Europe: A Shifting Landscape
The post-pandemic fiscal reality has left European treasuries under pressure. According to the Tax Foundation and Expatica, governments across the continent are raising taxes on wealth, property, and inheritance. Once-reliable safe havens are being transformed:
- The United Kingdom has abolished its non-dom regime (effective April 2025), erasing one of the most attractive offshore tax breaks for wealthy newcomers. With public debt in the $3–3.5 trillion range and borrowing accelerating, fiscal tightening is inevitable. Henley & Partners forecasts a net loss of 16,000 millionaires from the UK in 2025 alone.
- Switzerland, long a bastion of discretion and favorable tax planning, faces a referendum on a federal inheritance tax of 50% on estates exceeding CHF50 million — a seismic shift for ultra-wealthy heirs.
- Germany already imposes inheritance taxes of up to 50% for distant heirs, coupled with personal tax rates near 45%.
- Portugal has ended its celebrated Non-Habitual Resident (NHR) regime, replacing it with narrower, sector-focused incentives.
- Italy has doubled its lump-sum flat tax for wealthy residents from €100,000 to €200,000, recalibrating the appeal of relocation.
- Norway has introduced punitive exit taxes, targeting unrealized gains for wealthy individuals who emigrate.
The Global Context: Less Privacy, More Regulation
Tax competition is narrowing on a global level. The OECD’s Pillar Two initiative introduces a 15% minimum corporate tax across jurisdictions, curbing aggressive corporate structuring.
At the same time, regulators worldwide are tightening AML and KYC rules, reshaping how private banks, fiduciaries, and family offices operate. Privacy — once a cornerstone of cross-border wealth planning — is shrinking further under the OECD’s Crypto-Asset Reporting Framework (CARF), which will soon make crypto holdings reportable across borders.
Monaco: Prestige With Friction
Monaco continues to uphold its reputation with no personal income tax, yet the realities are shifting. VAT on certain developments, higher property transfer duties, and growing EU scrutiny are adding friction for ultra-high-net-worth individuals considering the principality.
Why the UAE Is Winning the Global Wealth Race
Against this backdrop, the UAE stands apart as the global outlier. Its fiscal environment remains unmatched:
- 0% personal income tax
- 0% capital gains tax for individuals
- No inheritance or gift tax
- Straightforward residency options through investment and real estate
The only adjustment in the last 10 years has been the introduction of a 9% federal corporate tax on profits above AED375,000 (with a 15% top-up for large multinationals), a move that still leaves personal wealth untouched.
Henley & Partners projects the UAE will lead the world in net millionaire inflows this decade. For globally mobile families, entrepreneurs, and wealth creators, the message is clear: while Europe imposes, the Gulf attracts.
What This Means for Global Families
For HNWIs, the implications are profound:
- Europe is becoming a high-tax environment. Residency regimes and preferential tax statuses are being dismantled. Intergenerational transfers are under greater threat from inheritance levies.
- Mobility is essential. Families with global footprints must reevaluate where they anchor their wealth, domicile their businesses, and educate their heirs.
- The UAE offers clarity and stability. Its tax-neutral framework, pro-investment policies, and strategic positioning make it a natural choice for wealth relocation.
Conclusion: The Next Decade Belongs to the UAE
As governments in Europe experiment with higher taxes, stricter compliance, and reduced privacy, the world’s mobile elite are quietly voting with their passports. The UAE, with its world-class infrastructure, strategic global connectivity, and unmatched fiscal advantages, is not just surviving this shift — it is thriving.
For high-net-worth families, entrepreneurs, and investors, the decision is not ideological but practical. Wealth is mobile, and jurisdictions are competing for it. Over the next decade, the UAE is positioned to be the unrivaled hub for global capital and elite lifestyles.
Partner With LIVERIA
At LIVERIA, we specialize in guiding ultra-high-net-worth individuals through this changing landscape. With expertise in luxury real estate, residency-by-investment, and wealth relocation strategies, we help our clients secure the right jurisdiction, property, and lifestyle for their future.
If you are considering relocating your wealth to a more favorable environment, or exploring property investment opportunities in the UAE, our global team is here to advise, connect, and deliver bespoke solutions.
👉 Contact us today to explore how we can help you safeguard and grow your wealth in the world’s most tax-efficient destinations.
