BDO UAE and BDO UK recently hosted a webinar exploring the growing trend of global wealth migration to the UAE and the increasing importance of succession planning, family governance and wealth structuring for internationally mobile families, entrepreneurs and business owners. The session examined why the UAE continues to attract significant wealth inflows, the factors driving UK wealth migration, practical structuring solutions available in the UAE and key UAE and UK tax considerations for family wealth arrangements.
As global wealth mobility accelerates, families are increasingly looking beyond traditional tax planning and focusing on long-term wealth preservation, governance, business continuity and intergenerational succession.
Key drivers include:
Particular migration trends observed by BDO UK included:
Key characteristics include:
Key benefits include:
Typical services include:
A key feature of the regime is the ability for qualifying family foundations, trusts and similar entities to obtain tax-transparent treatment, subject to satisfying the conditions prescribed under Article 17(1) of the UAE Corporate Tax Law and obtaining approval from the Federal Tax Authority (FTA).
The discussion covered:
Examples included:
Important considerations included:
As global wealth mobility accelerates, families are increasingly looking beyond traditional tax planning and focusing on long-term wealth preservation, governance, business continuity and intergenerational succession.
1. The UAE continues to lead global wealth migration
The webinar opened by examining the UAE's position as one of the world's leading destinations for high-net-worth individuals (HNWIs), family offices and entrepreneurs. Key factors driving this trend include:- Political and economic stability.
- Business-friendly regulatory environment.
- Strategic location connecting Europe, Asia and Africa.
- High quality of life and international connectivity.
- Availability of sophisticated wealth structuring and succession planning solutions.
- The UAE's millionaire population increased by approximately 98% between 2014 and 2024.
- The UAE is home to approximately 130,500 millionaires, 325 centi-millionaires and 28 billionaires.
- In 2025 alone, the UAE attracted an estimated 9,800 millionaire migrants, representing approximately USD 63 billion of wealth inflows.
2. Why wealth is leaving the UK
A UK perspective was provided by Michael Flaherty, who discussed the factors contributing to the significant outflow of wealth from the UK.Key drivers include:
- Political and policy uncertainty.
- Significant changes to the UK tax landscape.
- Increased inheritance tax exposure for internationally connected families.
- Rising costs of doing business.
- Greater international mobility among entrepreneurs and wealthy families.
- Lifestyle and quality of life considerations.
Particular migration trends observed by BDO UK included:
- Internationally connected families relocating from the UK.
- Business owners seeking more favourable operating environments.
- Family offices expanding into the UAE.
- Entrepreneurs establishing new ventures in the region.
- Senior professionals relocating for commercial and lifestyle opportunities.
3. Wealth structuring solutions available in the UAE
The webinar explored several commonly used wealth preservation and succession planning structures available in the UAE.Foundations
Foundations continue to be one of the fastest-growing wealth planning vehicles in the UAE.Key characteristics include:
- Separate legal personality.
- Ability to hold assets, investments, businesses and bank accounts.
- Support for succession planning, wealth preservation and family governance.
- Flexibility in defining beneficiaries and governance arrangements.
Trusts
Trusts remain a popular international succession planning tool.Key benefits include:
- Wealth preservation.
- Asset protection.
- Succession planning.
- Separation of legal and beneficial ownership of assets.
Holding companies, SPVs and Prescribed companies
Asset-holding structures continue to play an important role in family wealth planning by:- Ring-fencing assets and liabilities.
- Segregating investment portfolios.
- Centralising ownership and control.
- Supporting succession planning and governance arrangements.
Variable Capital Companies (VCCs)
The webinar also highlighted the DIFC Variable Capital Company (VCC) framework, which allows families and investors to hold multiple segregated investment portfolios within a single umbrella structure while maintaining asset segregation between portfolios.Family offices
Single and Multi-Family Offices continue to gain popularity among wealthy families.Typical services include:
- Investment oversight.
- Governance and reporting.
- Succession planning support.
- Treasury and administrative services.
- Coordination of professional advisers.
Wills & Estate planning
While sophisticated structures are increasingly being adopted, wills remain a critical component of any succession plan and help ensure the orderly distribution of assets following death.4. UAE corporate tax considerations for family structures
The webinar examined the UAE's Family Foundation regime and its interaction with UAE Corporate Tax.A key feature of the regime is the ability for qualifying family foundations, trusts and similar entities to obtain tax-transparent treatment, subject to satisfying the conditions prescribed under Article 17(1) of the UAE Corporate Tax Law and obtaining approval from the Federal Tax Authority (FTA).
The discussion covered:
- Conditions for tax-transparent treatment.
- Beneficiary requirements.
- Wealth preservation and succession planning objectives.
- Ongoing monitoring and reporting obligations.
- Compliance requirements for foundations and underlying structures.
5. Practical family wealth planning case studies
Several practical examples were discussed to illustrate how different structures can be used in real-life family wealth scenarios.Examples included:
Foundation-led family wealth structure
- Foundation at the top of the structure.
- Holding company and SPVs beneath the foundation.
- Family office providing governance and administration.
- Segregation of asset classes and improved succession planning.
Trust-based family business structure
- Trust holding the shares of an operating business.
- Asset protection and succession planning benefits.
- Separation of legal and beneficial ownership.
Cross-border real estate structures
- Foreign foundations holding UAE real estate.
- UAE tax considerations and nexus requirements.
- Tax transparency opportunities where qualifying conditions are met.
Multiple foundation structures
- Separate family branches utilising distinct foundations.
- Shared investment vehicles beneath multiple family foundations.
- Enhanced governance and succession flexibility.
6. UK tax considerations for UAE structures
The webinar concluded with a discussion of key UK tax considerations for UK-connected families using UAE structures.Important considerations included:
- Transfer of Assets Abroad (TOAA) anti-avoidance provisions.
- Capital gains tax attribution rules.
- UK inheritance tax exposure.
- Temporary non-residence rules.
- Long-term residence rules.
- UK treatment of foundations and overseas structures.
Key takeaways
- Global wealth mobility continues to accelerate, with families increasingly adopting international wealth planning strategies.
- The UAE remains one of the world's leading destinations for HNWIs, family offices and entrepreneurs.
- Foundations, trusts, family offices and holding structures can play an important role in wealth preservation, governance and succession planning.
- Effective structuring requires careful consideration of both UAE and foreign tax implications.
- Early succession planning is essential to preserving wealth, avoiding fragmentation and ensuring seamless transitions across generations.