TL;DR
Abu Dhabi and Dubai now top the list of the world’s most tax-friendly cities, according to the 2025 Tax Friendly Cities Index by Multipolitan. But they’re not alone. The Gulf region as a whole is quietly building a strong reputation as a stable, low-tax hub for global wealth.
The new index, which forms part of Multipolitan’s Wealth Report 2025: The Taxed Generation, is the first of its kind. It’s based on hard data, statutory taxes, treaty networks, and legal and governance strength, across 164 countries.
This matters not just for the ultra-wealthy, but also for professionals and business owners who want to protect and grow their assets in a stable environment.
What Is the Tax Friendly Cities Index?
The Tax Friendly Cities Index ranks major cities within the most tax-favorable countries. It uses a multi-factor scoring system, looking at:
According to Gabrielle Reid, Head of Insights, Multipolitan, "In a world where wealth mobility has become increasingly fluid, taxation remains one of the most powerful levers influencing where high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) choose to live, invest, and preserve their wealth."
This index isn’t about loopholes or tax havens, it’s about predictable, efficient systems where residents and investors know what to expect.
UAE Leads the List
Abu Dhabi ranks first overall. It offers low property-related fees and a robust legal system, which gives it an edge even over Dubai.
Dubai, ranked second, stands out for its global connections, business infrastructure, and strong treaty network. Its long-standing appeal to mobile professionals and investors is backed by years of economic planning and policy stability.
Both cities reflect the UAE’s ongoing push to become a global wealth management and lifestyle hub. Their legal clarity, infrastructure, and tax advantages make them highly attractive, not just for the ultra-rich, but for any global resident thinking long term.
Gulf Cities Dominate
Seven Gulf cities made it into the global top 20, pointing to a wider regional shift. Alongside Abu Dhabi (#1) and Dubai (#2), Manama (#4), Doha (#5), Kuwait City (#8), Riyadh (#12), and Muscat (#17) also ranked high.
These cities offer more than just low or zero income tax. Governments across the region are building stronger legal systems, improving financial regulation, and investing in infrastructure. They're making it easier for global investors and families to settle and operate with long-term confidence.
This shift isn’t just about paying less tax. It’s about stability, structure, and planning for the future in a world that’s changing fast.
Full Top 20 Tax-Friendly Cities (2025)
According to the 2025 Tax Friendly Cities Index by Multipolitan, these are the top 20 tax-friendly cities this year:
Abu Dhabi Dubai Singapore Manama Doha Zurich Hong Kong Kuwait City George Town Hamilton (Bermuda) Macau Riyadh Stockholm Bucharest Port Louis St. John’s Muscat Prague Sofia Tallinn
FAQ
1. Why did Abu Dhabi rank higher than Dubai?
Abu Dhabi has slightly lower property-related fees and stronger legal structures, giving it a small advantage over Dubai.
2. What kind of taxes are considered in this index?
The index looks at income taxes, property-related taxes, inheritance rules, and tax treaties, plus overall governance.
3. Is this only relevant to the super-rich?
No. While the index focuses on high-net-worth individuals, the insights apply to anyone considering relocation, investment, or long-term financial planning in a stable, low-tax environment.
- Abu Dhabi and Dubai rank first and second in a global list of tax-friendly cities.
- Seven Gulf cities, including Riyadh and Doha, made it into the top 20.
- The ranking is based on tax laws, governance, and legal structure.
Abu Dhabi and Dubai now top the list of the world’s most tax-friendly cities, according to the 2025 Tax Friendly Cities Index by Multipolitan. But they’re not alone. The Gulf region as a whole is quietly building a strong reputation as a stable, low-tax hub for global wealth.
The new index, which forms part of Multipolitan’s Wealth Report 2025: The Taxed Generation, is the first of its kind. It’s based on hard data, statutory taxes, treaty networks, and legal and governance strength, across 164 countries.
This matters not just for the ultra-wealthy, but also for professionals and business owners who want to protect and grow their assets in a stable environment.
What Is the Tax Friendly Cities Index?
The Tax Friendly Cities Index ranks major cities within the most tax-favorable countries. It uses a multi-factor scoring system, looking at:
- Tax rates and structures (income, property, inheritance)
- Double tax treaty coverage
- Governance and legal strength
According to Gabrielle Reid, Head of Insights, Multipolitan, "In a world where wealth mobility has become increasingly fluid, taxation remains one of the most powerful levers influencing where high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) choose to live, invest, and preserve their wealth."
This index isn’t about loopholes or tax havens, it’s about predictable, efficient systems where residents and investors know what to expect.
UAE Leads the List
Abu Dhabi ranks first overall. It offers low property-related fees and a robust legal system, which gives it an edge even over Dubai.
Dubai, ranked second, stands out for its global connections, business infrastructure, and strong treaty network. Its long-standing appeal to mobile professionals and investors is backed by years of economic planning and policy stability.
Both cities reflect the UAE’s ongoing push to become a global wealth management and lifestyle hub. Their legal clarity, infrastructure, and tax advantages make them highly attractive, not just for the ultra-rich, but for any global resident thinking long term.
Gulf Cities Dominate
Seven Gulf cities made it into the global top 20, pointing to a wider regional shift. Alongside Abu Dhabi (#1) and Dubai (#2), Manama (#4), Doha (#5), Kuwait City (#8), Riyadh (#12), and Muscat (#17) also ranked high.
These cities offer more than just low or zero income tax. Governments across the region are building stronger legal systems, improving financial regulation, and investing in infrastructure. They're making it easier for global investors and families to settle and operate with long-term confidence.
This shift isn’t just about paying less tax. It’s about stability, structure, and planning for the future in a world that’s changing fast.
Full Top 20 Tax-Friendly Cities (2025)
According to the 2025 Tax Friendly Cities Index by Multipolitan, these are the top 20 tax-friendly cities this year:
FAQ
1. Why did Abu Dhabi rank higher than Dubai?
Abu Dhabi has slightly lower property-related fees and stronger legal structures, giving it a small advantage over Dubai.
2. What kind of taxes are considered in this index?
The index looks at income taxes, property-related taxes, inheritance rules, and tax treaties, plus overall governance.
3. Is this only relevant to the super-rich?
No. While the index focuses on high-net-worth individuals, the insights apply to anyone considering relocation, investment, or long-term financial planning in a stable, low-tax environment.
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