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 the Escape
Hidden Exit Costs
The costs most departing expatriates don't budget for. Each one creates real cash-flow drag on your exit capital.
| 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 |
UAE banking law mandates immediate account freezing upon visa cancellation if any liabilities remain outstanding. This includes fixed deposits, savings, and current accounts. Unfreezing requires a clearance certificate proving zero debt.
Closing a UAE bank account from abroad is administratively hostile - some banks require physical presence or an active UAE phone number for 2FA. Do this before your visa is cancelled.
Breaking a residential lease typically costs 2 months' rent as a penalty clause, regardless of advance notice. Dubai leases are often annual, so mid-year departure amplifies this cost.
DEWA security deposits (AED 2,000 for apartments, AED 4,000 for villas) require formal closure procedures. 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 this legally decimates your final settlement calculation.
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. Transitioning mid-year forfeits these fees (typically non-refundable). 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
The most powerful legal arbitrage available to any departing UAE expatriate. Execute this before your flight lands - 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 historical gain is permanently protected.
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
- Verify W-8BEN is current (valid 3 years) - ensures 15% dividend withholding not 30%
- 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
A current W-8BEN form ensures treaty-rate dividend withholding (typically 15% for UK/EU residents under US tax treaties). Without it, IBKR applies the default 30% rate to US stock dividends. Forms are valid for 3 calendar years - renew proactively.
Step 4 - Choose Your Regime
Where Are You Returning To?
Each destination has a distinct tax architecture. Select your country for a full regime breakdown, eligibility calculator, and jurisdiction-specific strategy guide.
- 100% exemption on foreign income & gains years 1-4
- Remit overseas wealth to UK tax-free
- SIPP contributions of up to GBP 60,000/yr
- Personal Portfolio Bond for long-term deferral
- 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
EU Tax Arbitrage Options
Four European regimes that actively incentivize wealthy inbound residents. Duration and mechanics vary significantly.
| Jurisdiction | Key Benefit Mechanics | 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 100,000 flat annual tax covering all foreign-source income regardless of amount. | EUR 100k flat | 15 years | Ultra-high net worth investors with >EUR 1m foreign income |
 GreecePensioner Regime |
7% flat tax on all global pension income. Ideal for retiring to the Greek islands. | 7% (pension) | 10 years | Retirees with substantial overseas pension income |
 PortugalIFICI (post-NHR) |
20% on qualifying R&D and specific professional roles. Pensions now fully taxed - greatly diminished since NHR abolition. | 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.