Abu Dhabi and Dubai emerged this year as the most tax-friendly cities globally, according to Multipolitan’s flagship Wealth Report 2025: The Taxed Generation. Abu Dhabi and Dubai’s favorable tax environments and stable governance have earned them the top two spots, respectively.
The inclusion of five additional GCC cities in the top 20 tax-friendly cities underscores the region’s increased significance as a key jurisdiction for global wealth. As governments recalibrate policy, new opportunities are emerging for those with the foresight to act early and decisively. Concurrently, environmental volatility and regulatory frameworks are reshaping the criteria by which globally mobile families assess cities.
“Wealth isn’t just being built anymore – it’s being defended. Geography is becoming the ultimate strategy, and the UAE is at the forefront of this shift,” said Nirbhay Handa, CEO of Multipolitan.
GCC cities dominate charts
This index evaluates 164 jurisdictions using a composite of statutory taxation metrics (personal income tax, capital gains, inheritance, and wealth tax), bilateral tax treaty coverage and governance indicators.
Abu Dhabi ranks first, combining a 0 percent income tax regime, relatively low property transfer costs and a strong legal infrastructure. Meanwhile, Dubai ranks second, offering broad international connectivity and regulatory clarity. In third place comes Singapore, not due to zero taxation, but as a jurisdiction exemplifying fiscal prudence, robust treaty architecture and policy stability.
Beyond the UAE, five other GCC cities: Manama (#4), Doha (#5), Kuwait City (#8), Riyadh (#12), and Muscat (#17) also rank in the top 20, benefitting from favorable tax regimes and strong commitments to enhancing institutional depth and international connectivity. With seven of the top 20 tax-friendly cities located in the GCC, the region’s growing importance as a key enabler of wealth preservation is evident.
“In short, today’s tax-friendly cities must offer more than a low tax rate: they must earn investors’ trust that the rate won’t suddenly change and that assets will remain safe. That requires stable governance – something Abu Dhabi, Dubai, and Singapore have carefully cultivated,” added Handa.
Why do Abu Dhabi and Dubai top the ranking?
The UAE cements its leadership as a global hub for mobile wealth in the inaugural Tax Friendly Cities Index 2025, with Abu Dhabi ranked #1 and Dubai following closely at #2, ahead of financial powerhouses like Singapore (#3), Zurich (#6), and Hong Kong (#7).
Abu Dhabi’s top position reflects a combination of ultra-low personal tax exposure, regulatory stability, and a lower property-related fee compared to Dubai, giving it a slight edge in overall tax friendliness. Dubai’s second-place ranking highlights its unmatched accessibility through one of the world’s most extensive treaty networks and its reputation for strong governance.
The UAE’s performance reinforces its position as a global epicentre for wealth preservation, offering HNWIs not just low tax friction, but also legal clarity and future-proof optionality in an increasingly complex fiscal landscape. Its reputation is evidenced by the 9,800 millionaires expected to move to it this year. According to the Henley Private Wealth Migration Report 2025, the estimated wealth of millionaires moving to the UAE this year is $63 billion, with the nation recording a 98 percent surge in millionaire growth over the last 10 years.
In addition to the Tax Friendly Cities Index, the report unveils two powerful new lenses on global resilience, the Wealth Preservation Cities Index (2015–2025) and the Smart & Sustainable Cities Index (2025).
On the Wealth Preservation Cities Index, Zug, Hong Kong and Basel lead, having safeguarded real purchasing power through a volatile decade. Abu Dhabi and Dubai place 22nd and 24th, underscoring increasing maturity in capital preservation.
On the Smart & Sustainable Cities Index, Wellington, Copenhagen and Singapore top the list, combining climate resilience with advanced digital infrastructure, the bedrock of future wealth security. Abu Dhabi and Dubai rank 23rd and 25th, reflecting momentum and future potential.
Read: UAE becomes safest country in the world in 2025, climbing one spot in mid-year review
Top 20 tax-friendly cities in 2025
According to Multipolitan’s Tax Friendly Cities Index 2025, the top 20 tax-friendly cities this year are:
