Step 1 - Know Your Exit Capital
End of Service Gratuity Calculator
Under UAE Federal Decree-Law No. 33 of 2021. Based on basic salary only - excludes housing, transport, and bonus allowances.
Maximum payout is legally capped at 2 years' basic salary. Payment must be made within 14 days of contract termination.
Enter salary and years above
| Period | Days/yr | Years | Sub-total |
|---|
Indicative exchange rates. AED is pegged to USD at 3.6725. Other rates are approximate mid-market - verify before transacting.
Step 2: Budget for leaving
The costs of leaving
The costs people most often forget to budget for when they leave the Gulf.
| Category | Typical Cost |
|---|---|
| Lease break penalty | 2 months' rent |
| DEWA deposit forfeiture | AED 2,000-4,000 |
| Salik & fines clearance | Variable |
| Pet relocation (EU/UK) | $3,500-$7,500 |
| Pet relocation (Asia) | $4,000-$8,500 |
| Pet relocation (ANZ) | $6,000-$12,000+ |
| Removal & shipping | $3,000-$8,000 |
| International school gap | AED 40k-90k/yr |
If you still owe money when your visa is cancelled, UAE banks can freeze your accounts, including fixed deposits, savings and current accounts. Unfreezing requires a clearance certificate proving zero debt.
Closing a UAE bank account from abroad is hard work. Some banks want you there in person, or need an active UAE phone number for verification codes. Do this before your visa is cancelled.
Breaking a residential lease typically costs 2 months' rent as a penalty clause, regardless of advance notice. Most Dubai leases run for a year, so leaving partway through costs more.
DEWA security deposits (AED 2,000 for apartments, AED 4,000 for villas) are only refunded when you formally close the account. Telecommunications contracts (du, Etisalat) may carry early termination fees of 1-3 months' line rental.
The UAE is a "listed country" which means pets travelling to the UK or EU avoid mandatory Rabies Neutralizing Antibody Titre Tests (RNATT) - a 3-month waiting period for unlisted jurisdictions. However, UK-bound pets must travel as manifest cargo; airlines do not permit in-cabin on inbound UK routes.
| Destination | Classification | Typical Cost |
|---|---|---|
| USA / Canada | In-cabin / Cargo | $1,200-$3,000 |
| Europe / UK | Cargo only | $3,500-$7,500 |
| Asia (Thailand / PH) | Manifest Cargo | $4,000-$8,500 |
| Australia / NZ | Cargo + 180-day quarantine | $6,000-$12,000+ |
Your EOSG is calculated on your last drawn basic salary. Employers may attempt to reduce your basic wage via a contract addendum immediately before termination. Signing one can cut your gratuity sharply, because it's worked out on your final basic salary.
Do not sign any salary restructuring in the final 3-6 months of employment without calculating the EOSG impact. If your employer requests this, seek legal advice under UAE Federal Decree-Law No. 33 of 2021.
Dubai international school fees range from AED 40,000 to AED 90,000 per annum per child. Leave mid-year and you usually lose the fees you've already paid. UK state schools are free but may require catchment-area property or registered address evidence before your arrival date. Private UK schooling costs GBP 15,000-GBP 45,000 annually.
Step 3 - Protect Your Portfolio
The Cost-Basis Reset Strategy
If you're leaving the UAE with investment gains, this is usually the most valuable thing to do before you go. It has to happen before you leave, not after.
❌ Without Reset
You buy VWRA at AED 250 in 2019. It's worth AED 600 today. You leave for the UK and become tax resident. HMRC now taxes your capital gain from AED 250 (original cost) to any future sale price - including the AED 350 gain you built tax-free in Dubai.
✅ With Reset
You sell VWRA at AED 600 - 0% UAE tax. Repurchase at AED 600. Fly to London. Your HMRC cost basis is AED 600. Only future appreciation above AED 600 is taxable in the UK. The AED 350 gain you made in the UAE isn't taxed in the UK.
IBKR Platform Transition
Brokerage Checklist
IBKR operates different entities by tax residency. Moving from UAE to EU or UK typically requires opening a new account under the relevant entity and manually transferring assets - not just updating your address.
- Execute cost-basis reset before updating IBKR tax residency
- Update your W-8BEN with your new country of residence (valid to the end of the third calendar year after signing) - a UK or other treaty residence can cut US dividend withholding from 30% to 15%
- Check if destination requires new IBKR entity (EU = IBKR Ireland/Germany, UK = IBKR UK)
- Identify PRIIPs restrictions - US ETFs (SPY, VOO, VT) become close-only for EU/UK retail clients
- Research UCITS equivalents: VWRA → VWRP, SPY → CSPX, QQQ → EQQQ
- Consider Professional Client status application (bypasses KID/PRIIPs requirement)
- Request account transfer/ACATS once new entity account is open
- Download full tax statements from UAE period before account migration
PRIIPs - What Gets Blocked
EU Regulation prohibits retail investors from purchasing US-domiciled ETFs without a Key Information Document (KID). US issuers do not provide KIDs. Result: ETFs like SPY, VOO, VT, VXUS become purchase-restricted for EU/UK retail accounts.
You can still hold and sell existing positions - you just cannot add new purchases. Switch to UCITS-compliant equivalents listed on London Stock Exchange or Euronext Amsterdam.
W-8BEN - Dividend Withholding
The Gulf states have no US income-tax treaty, so US dividends paid to a Gulf resident are withheld at 30%. Once you are resident in a treaty country such as the UK (15% on portfolio dividends), update your W-8BEN with that residence to claim the treaty rate; without a valid form, the default 30% applies. Forms stay valid until the end of the third calendar year after signing - renew proactively.
Step 4 - Choose Your Regime
Where Are You Returning To?
Each country taxes returning residents differently. Pick yours for the rules, an eligibility check and what to do before you move.
- Relief on eligible foreign income & gains, years 1-4
- Savings earned while non-resident can come home without UK tax
- SIPP contributions of up to GBP 60,000/yr
- Offshore bond reliefs: time apportionment and top-slicing
- 24% flat tax on Spanish salary up to EUR 600,000
- 0% tax on all foreign investment income & gains
- Extends to spouse and dependent children
- Only 5-year prior non-residency required
- Foreign income remitted from 2024 onward is taxable
- Tax residency triggers at 180 days in-country
- Progressive brackets from 0% to 35%
- Cost-basis reset critical before 180-day trigger
- OFW non-residents taxed only on PH-source income
- Repatriation triggers worldwide taxation immediately
- 15% final tax on foreign share capital gains
- Balikbayan duty-free up to PHP 350,000
- Resident but Not Ordinarily Resident status
- Foreign income 100% exempt during RNOR window
- NRE accounts maintain tax-free interest via RFC
- Liquidate IBKR in final RNOR year - tax-free reset
- FBR wealth reconciliation mandatory on return
- Roshan Digital Account: 10% final tax on NPC yield
- ATL status essential to avoid elevated WHT rates
- 15% final tax on stock market gains via RDA
European Regime Comparison
European tax regimes for new residents
Four countries with special tax regimes for people moving there. How long they last and how they work varies a lot.
| Jurisdiction | How it works | Foreign Income | Duration | Best For |
|---|---|---|---|---|
| Spain Beckham Law |
24% flat on Spanish income up to EUR 600k. All foreign income & gains: 0%. | 0% | 6 years | Salaried professionals with large offshore portfolios |
 ItalyHNWI Flat Tax |
EUR 300,000 flat annual tax on foreign-source income for people moving to Italy from 1 January 2026 (EUR 200,000 for earlier 2024-25 entrants; EUR 50,000 per added family member). | EUR 300k flat | 15 years | Very high earners whose foreign income is several million euros a year |
 GreecePensioner Regime |
7% flat tax on all foreign-source income for foreign-pension recipients who were not Greek tax resident in 5 of the previous 6 years. | 7% (all foreign) | Up to 15 years | Retirees with substantial overseas pension income |
 PortugalIFICI (post-NHR) |
20% on qualifying R&D and specific professional roles. Pensions get no special treatment. Much narrower than the old NHR scheme. | Role-specific | 10 years | R&D professionals only - pension benefit no longer exists |
Regime rules are subject to legislative change. Verify current requirements with a qualified cross-border tax adviser.