Today's Edition
ISIDORA CIRIC (ABU DHABI)
The UAE has taken the top spot in a new Global Citizen Solutions ranking, scoring 82.7 out of 100 for its appeal to internationally mobile individuals looking to optimise their tax position.
The Tax Optimization for Global Citizens report, published on Wednesday, compares 48 jurisdictions across 11 indicators covering the cost of tax residence, the treatment of foreign income and departing residents, and the terms available to people seeking residence through investment.
The UAE received a perfect 100 for Tax Burden, a score of 64 for Tax Structure and 86 for Investment Migration. Antigua & Barbuda came second overall with 82.2, followed by Paraguay at 77.2, Hong Kong at 76.9 and the Bahamas at 76.2.
With all three leading jurisdictions levying neither personal income nor net wealth taxes, the UAE pulled ahead on two other parts of its tax system.
“The United Arab Emirates heads the index because it pairs that with a consumption tax of only 5% and no charge on departure, giving it a perfect Tax Burden score alongside a place in the top three for structure,” the report said.
The UAE also placed third for Tax Structure, behind Uruguay, which scored 88, and Hong Kong at 67. The Tax Structure pillar examines factors including whether residents are taxed on income earned abroad, the availability of preferential regimes and whether people face a tax charge when ending residence.
Several major economies landed near the bottom of the ranking, well behind the UAE’s 82.7 score.
The United States ranked 46th overall with 33.5 points, Denmark was 47th at 30.4 and Germany finished last at 28.7. Japan placed 45th, while Spain and France ranked 44th and 42nd respectively.
The report linked the lower positions of many high tax jurisdictions to the combined effect of worldwide income taxation, capital gains charges, inheritance taxes and costs associated with departure.
For internationally mobile individuals, the authors argue that the overall ranking is a starting point rather than a universal answer.
An entrepreneur approaching a liquidity event, a retiree living from accumulated assets and a remote worker earning overseas income can face very different outcomes under the same tax code, meaning the next decision depends on where income arises, what assets are held and the rules in the country being left.
