Charlie Sosna, Head of Private Wealth and Tax at Mishcon de Reya, has been quoted across various outlets on the UAE's proposed relaxation of tax residency rules for expatriates who left the region amid the Iran conflict.
Charlie explains that "this move by the UAE to relax its rules and allow expats to spend longer periods abroad without losing their tax status may offer some comfort on paper, but it does not eliminate the underlying tax risk." He warns that "other jurisdictions may take a different view if that person is spending significant time there or has established sufficient ties," creating the possibility of being treated as resident in more than one country. He adds that those returning to the UK "may trigger a UK capital gains tax liability on gains made while in Dubai, as well as an income tax charge on certain forms of income received during that time."
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