7 best tax-friendly bolt-holes for Brits as Iran war ends Dubai dream | Travel News | Travel
There are plenty of places that offer the financial advantages of Dubai — without the risks (Image: Getty)
For years, the UAE and Saudi Arabia reigned supreme as the destinations of choice for Brits seeking a better life abroad — warm weather, world-class infrastructure and, crucially, no income tax. Dubai and Abu Dhabi became home to tens of thousands of British nationals, drawn by the promise of keeping more of what they earned while living in gleaming, modern cities.
But the war that has engulfed the region has shattered that dream overnight. With drone strikes hitting civilian areas, flights cancelled or rerouted and evacuation flights oversubscribed, many expats are asking a question they never expected to ask: where do we go now?
The good news is that the UAE was never the only option. From Caribbean islands with zero income tax to Mediterranean havens with favourable remittance schemes, there are plenty of places that offer the financial advantages of Dubai — without the geopolitical risk.
Here are the best alternatives for British expats looking to start over somewhere safer.
Read more: Dubai private jets hit £100k a trip as the uber-wealthy flee Iran strikes
Read more: I’ve hiked the Himalayas but wasn’t ready for Europe’s underrated walking trail
Bahamas
Few places on earth match the Bahamas for tax efficiency — the archipelago levies nothing on income, capital gains, inheritance or corporate earnings. North American billionaires have known this for years, but a growing wave of fintech and crypto entrepreneurs is now discovering what they have long enjoyed.
Heathrow to Nassau runs direct with British Airways — a significant advantage now that Middle Eastern flight routes are disrupted. Some 4,100 Brits have already put down roots, most of them in Nassau, the capital, where the bulk of international schools and cultural life is based. Pink-sand beaches, coral reefs and world-class sailing complete the picture.
The numbers: a city-centre one-bedroom flat runs to around $1,195 (£895) a month, with utility bills adding roughly $285 (£213). The FCDO flags violent crime and armed robberies — sometimes fatal — across residential and tourist areas of New Providence and Grand Bahama.
Bermuda
Britain’s oldest self-governing overseas territory punches well above its size. No income tax, no capital gains tax, genuine security and one of the highest standards of living in the Atlantic — Bermuda has plenty going for it. Brits can arrive without a visa and stay up to 180 days.
The price of admission is steep. Monthly rent on a three-bedroom apartment in Paget hovers around $10,000 (£7,497) — more than double London rates — and customs duties add further pain.

Cruise ships anchor in waters offshore of Georgetown Harbor in Grand Cayman. (Image: Getty)
Monaco
The principality needs little introduction. No income tax, no wealth tax, no capital gains tax, and assets passed to spouses or children attract no inheritance or gift tax either. Over 2,800 British nationals have made it their official residence, joining the F1 drivers, international dealmakers and celebrities drawn by the casinos, beach clubs and restaurant scene.
The price tag is the only real objection — Monaco consistently ranks among the costliest places anywhere to put a roof over your head, and visitors frequently conclude it fails to justify the expense.
Cayman Islands
The Caymans sit in the sweet spot between tax efficiency and lifestyle. Corporation tax, income tax, capital gains tax and inheritance tax are all absent, crime is low and the Caribbean climate is reliably excellent. Seven-Mile Beach and George Town anchor a social scene built around boat parties and outdoor living. Heathrow to Grand Cayman flies direct with British Airways.
The caveats: job options are limited, electricity and home insurance bills run high, and hurricane season stretches from June to November. Earthquakes are an additional, if infrequent, risk.

An iconic centuries-old battlements located along the seafront of the picturesque Kyrenia Harbor (Image: Getty)
And some low-tax alternatives…
Malta
Malta’s tax setup rewards Brits who structure their affairs carefully. Foreign income remitted to the island is taxed at a flat 15%, while overseas earnings kept outside Malta attract no local tax at all. Capital gains generated abroad are exempt even when the proceeds are brought in. English is an official language, easing the transition considerably.
Valletta claimed the title of world’s best city at the Condé Nast Traveller Readers’ Choice Awards 2025, and day-to-day costs remain reasonable — a beer in the capital runs to around €2.12 (£1.85). The complaints from residents centre on overcrowding, relentless construction, snarled traffic and rental costs that have climbed sharply in recent years.
Cyprus
A new tax-free income threshold of €22,000 (£19,061) introduced this year has sharpened Cyprus’s appeal considerably. Foreign income is untaxed, the pace of life is unhurried and the cost of living compares favourably with the UK. The Moore family from Middlesbrough — Sarah, 48, James, 47, and their two children — made the move and say they were “instantly happier” almost from the moment they arrived.
Bureaucracy moves slowly and summers can be brutally hot — two factors worth weighing before committing.
Costa Rica
Costa Rica’s Digital Nomad Visa sets the income bar at $3,000 (£2,233) a month and leaves foreign earnings untouched by local tax. Connections run via Madrid or Amsterdam. The natural environment is exceptional — beaches, cloud forests, volcanoes and waterfalls within easy reach, and temperatures that rarely stray outside 12-27°C.
The GOV.UK travel advice is candid about the risks: theft and muggings are described as “significant problems,” ATMs and buses are prime targets, and the Atlantic coast warrants particular caution. Road quality varies and driving at night in unfamiliar areas is best avoided.








