Why millionaires are leaving the UK and where they’re going.
Why millionaires are leaving the UK and where they’re going.
[*This article was first published 01/05/2025 and last updated 26/06/2025.]
Introduction.
The United Kingdom is currently experiencing a significant exodus of high-net-worth individuals (HNWIs), with estimates suggesting that over 10,800 millionaires left the country in 2024 alone. If not addressed promptly, this trend could have profound implications for the UK's economy and global standing.
This trend, propelled by recent tax reforms, apprehensions about public services, and perceptions of diminishing value for money, is poised to have far-reaching implications for the UK's economy and its position on the global stage.
To understand what's happening, it is essential to understand the details.
Global millionaire migration.
The Capital Exodus map by CitizenX provides a striking visualisation of global millionaire migration since 2020, illustrating the net movement of private wealth across borders. It highlights where high-net-worth individuals have been relocating their capital; fleeing authoritarian regimes or unstable economies in favour of countries perceived to offer greater personal freedom, financial stability, and rule of law.
Nations coloured in green, such as Australia, the UAE, and the United States, have seen substantial inflows of wealth, while those in red, most notably China, Russia, and India, have experienced major outflows.
In total, more than $2.5 trillion in net private wealth has shifted globally in this period, reflecting not only financial motivations but broader geopolitical and social dynamics.
Mapping gains and losses by country from millionaire migration.
The end of the 'non-dom' regime is likely a primary driver.
A key factor in this migration is the termination of the UK's non-domiciled (non-dom) tax status, effective from 6 April 2025. Under the previous system, individuals living in the UK but with a domicile elsewhere were only taxed on their UK income and gains. Foreign income and gains were only taxed if brought into the UK, a principle known as the 'remittance basis'.
To access this preferential treatment, longer-term residents were required to pay an annual Remittance Basis Charge (a lump sum fee of tens of thousands of pounds), which meant they forfeited certain allowances, such as the income tax personal allowance and the capital gains tax annual exemption.
However, from April 2025, this entire structure has been replaced by a residence-based system, under which all UK tax residents will be liable for tax on their worldwide income and gains, irrespective of domicile.
The government anticipates raising between £2.6 and £3.4 billion per year as a result of this change. However, critics argue this reform undermines the UK's competitive standing in the global wealth and talent market. Many warn of capital flight, reduced inward investment, and a long-term erosion of the UK's attractiveness to internationally mobile high-net-worth individuals.
What is the difference between residence and domicile?
In UK tax law, residence and domicile are two distinct concepts used to determine an individual's tax obligations. Although often confused, they relate to different aspects of a person's connection to the UK.
What does 'Residence' mean from a tax perspective?
Residence refers to where you live or spend your time during a tax year.
It is determined using the Statutory Residence Test (SRT), which looks at factors such as the number of days spent in the UK, ties to the UK (e.g. family, accommodation, work), and time spent abroad.
A UK resident is now generally taxed on their worldwide income and gains.
What does 'Domicile' mean from a tax perspective?
Domicile is a broader and more permanent concept tied to where you consider your long-term home to be.
It is usually acquired at birth (your domicile of origin) and may be different from your country of residence.
Changing domicile (acquiring a domicile of choice) requires severing ties with the original country and establishing a permanent intention to reside elsewhere.
For example:
A businessman born in India moved to the UK for work and has lived in London for 10 years.
He is a UK resident because he lives in the UK and meets the criteria under the Statutory Residence Test.
However, he remains domiciled in India unless he explicitly takes legal steps to change it, such as cutting all meaningful ties with India and establishing the UK as his permanent home.
Under the old non-dom regime, he could be taxed only on his UK income and gains, and on foreign income only if brought into the UK, by claiming the remittance basis and paying the annual Remittance Basis Charge (after 7 years).
Under the new regime, non-domiciled individuals who become UK tax residents will be liable for UK tax on their worldwide income and gains as they arise, even if the money is never brought into the UK.
This raises a significant risk of double taxation, particularly for those with substantial overseas interests. While the UK has double taxation agreements with many countries, these do not always provide full relief, and the process for claiming can be complex and inconsistent. For many, this change means paying tax on the same income both overseas and in the UK, creating a strong disincentive to remain resident in Britain.
UK millionaires face rising taxation and a perceived lack of value.
Beyond the 'non-dom' reforms, the UK has introduced a series of tax increases affecting the wealthy. These include higher capital gains tax rates, increased inheritance tax liabilities, and the freezing of income tax thresholds, effectively pushing more individuals into higher tax brackets. Some estimates suggest that certain HNWIs could face effective tax rates as high as 67%.
Many affluent individuals argue that despite their substantial tax contributions - often amounting to more in a single year than the average person pays in a lifetime - they receive diminishing returns in terms of public services.
Concerns over deteriorating public infrastructure, rising crime rates, and strained healthcare services contribute to the perception that the UK no longer offers value commensurate with its tax demands.
Quality of life and safety concerns are also pushing millionaires away from the UK.
Beyond taxation, quality of life is an increasingly influential factor in wealthy individuals' decisions to leave the UK. Rising levels of street crime, particularly in the larger cities, have created a sense that affluent individuals are being specifically targeted.
For example, a wave of watch thefts involving luxury watches valued in the tens or hundreds of thousands has drawn widespread attention. Criminal gangs often operate in daylight, using mopeds or e-bikes to snatch high-end items from victims going about their business.
In parallel, the UK is experiencing an epidemic of high-end car thefts. Data from the DVLA and insurance providers shows that Range Rovers, BMWs and Mercedes models are stolen at record levels, often by organised networks using relay attack technology. Even gated driveways and security measures are proving insufficient deterrents. The result is that many wealthy residents feel exposed and poorly protected, particularly in urban centres.
These issues are compounded by what is perceived as a declining standard of public services and a lack of effective policing. Combined with poor weather and overcrowding, the appeal of relocating to a safer, cleaner, and more climate-friendly jurisdiction becomes difficult to ignore.
What are the most popular tax havens for UK residents to move to?
Several countries have emerged as preferred destinations for departing UK millionaires, including Andorra, Cyprus, Italy, Monaco, Portugal, Greece, Switzerland and the UAE (Dubai).
The benefits and entry requirements for each country are outlined below.
Note that the information provided is accurate at the time of writing, but tax laws and residency requirements are subject to change; therefore, readers should conduct their own research and consult with qualified professionals before making any relocation or investment decisions.
What makes Andorra attractive as a tax haven for UK millionaires?
Andorra has a flat income tax rate capped at 10%, with no inheritance, wealth, or capital gains tax. It requires a minimum investment of €400,000 in local assets and a €50,000 deposit with the government. Passive residents must live there for 90 days annually and cannot work locally. Andorra appeals to those seeking privacy, safety, and a low-profile base within easy reach of Spain and France.
What makes Cyprus attractive as a tax haven for UK millionaires?
Cyprus offers non-domiciled residents an exemption from tax on dividends, interest, and capital gains (on unlisted shares). High earners also benefit from a 50% income tax exemption for salaries over €100,000. Residency is granted with a €300,000 property purchase and evidence of overseas income. English is widely spoken, and Cyprus combines EU residency with a familiar legal environment and a favourable climate.
What makes Italy attractive as a tax haven for UK millionaires?
Italy's flat tax regime allows new residents to pay €100,000 per year on all foreign income, regardless of amount, for up to 15 years. This can also apply to family members at €25,000 annually. Foreign assets are excluded from inheritance and gift taxes, and need not be disclosed. Entry typically requires an investment of €500,000 in Italian company shares or €2 million in government bonds. Italy appeals to those seeking cultural heritage, strong healthcare, and a European base with lifestyle prestige.
What makes Monaco attractive as a tax haven for UK millionaires?
Monaco has no personal income tax, wealth tax or capital gains tax, making it arguably the purest modern tax haven. To gain residency, individuals must deposit at least €500,000 in a Monaco bank and show proof of accommodation (which is some of the most expensive in the world). UK nationals also need a French long-stay visa (Type D). Monaco combines fiscal freedom with unmatched luxury, privacy and security, attracting ultra-high-net-worth individuals from across the globe.
What makes Portugal attractive as a tax haven for UK millionaires?
Portugal has ended its Non-Habitual Resident (NHR) regime and replaced it in 2024 with the IFICI programme, offering a 20% flat tax on Portuguese employment income and limited exemptions on foreign income, though pensions are excluded. Aimed at professionals in science, tech, and innovation, it applies for ten years and is only available to those who haven't been tax resident in Portugal in the previous five years. With broader tax breaks removed, Portugal is now less appealing for retirees and passive investors, though still viable for sector-specific professionals.
What makes Greece attractive as a tax haven for UK millionaires?
Greece offers a 7% flat tax on foreign pension income for retirees, and a €100,000 flat tax on global income for HNWIs opting into its 'non-dom' regime. The latter requires at least €500,000 invested in Greece over three years. Residency can also be obtained via a €250,000 property investment through the Golden Visa programme. With Mediterranean living, improving infrastructure, and low living costs, Greece appeals to both retirees and mobile professionals.
What makes Switzerland attractive as a tax haven for UK millionaires?
Switzerland offers lump-sum taxation for non-employed foreigners, with taxes based on living expenses rather than actual income. Amounts typically range from CHF 150,000 to over CHF 1 million annually, depending on the canton. Applicants must secure a residence permit and live in Switzerland for at least 183 days per year. The country's appeal lies in its political stability, strong institutions, discreet banking, and exceptional quality of life.
What makes the UAE and Dubai attractive as a tax haven for UK millionaires?
The UAE imposes no personal income tax, capital gains tax, or inheritance tax. It offers a 10-year Golden Visa for those investing AED 2 million (around £430,000) in real estate. There is no minimum stay requirement. Dubai, in particular, attracts entrepreneurs and remote business owners with its modern infrastructure, safe environment, and strategic global location.
What are the economic implications of millionaires leaving the UK?
The departure of wealthy individuals has tangible economic consequences. The top 1% of earners contribute nearly 30% of all income tax revenues in the UK. Their exodus could lead to a significant reduction in tax receipts, affecting public spending and investment.
Moreover, HNWIs often play a crucial role in philanthropy, entrepreneurship, and job creation. Their relocation may result in decreased charitable donations and a potential slowdown in business innovation and employment opportunities within the UK.
Why do many millionaires choose to stay in the UK?
Despite increasing tax burdens and regulatory complexity, many millionaires choose to remain in the UK due to its global economic influence, legal stability, and cultural familiarity. London, in particular, remains a leading financial hub with deep capital markets, access to global investors, and a concentration of top-tier advisors, banks, and legal firms.
This ecosystem is difficult to replicate elsewhere for business owners and investors. The English legal system also provides a strong foundation for asset protection and contract enforcement, which many wealthy individuals regard as indispensable.
Beyond finance, the UK offers high standards in private healthcare, world-renowned education options, and varied lifestyle choices. Many UK millionaires have strong personal and professional ties in Britain, including family, charitable commitments, and UK-based business interests.
For those who value discretion, social infrastructure, and the rule of law over outright tax minimisation, the UK remains a desirable long-term base - despite its financial drawbacks.
What can the UK government do to stop millionaires from leaving the country?
To mitigate the outflow of wealth, investment, and entrepreneurial talent, the UK government may need to adopt a more deliberate strategy that balances fiscal responsibility with international competitiveness. While tax fairness is a valid objective, there is a growing argument that current policies are discouraging the very individuals who contribute disproportionately to the public purse and the wider economy.
Reconsidering the tax framework could be the starting point. The UK's current tax structure - especially when accounting for income tax, dividend tax, capital gains, and inheritance tax - places a considerable burden on high earners and wealth holders. While international comparisons are complex, many competing jurisdictions offer lower and simpler taxation on global income and assets. Reviewing marginal rates, thresholds, and how success is taxed could help the UK remain competitive without dismantling its revenue base.
Improving public services would also strengthen the case for remaining. Many wealthy individuals cite rising crime, deteriorating infrastructure, and strain on core services as reasons for disillusionment. When individuals contribute hundreds of thousands (or even millions) each year in tax, the perceived return on that contribution matters. Restoring confidence in safety, cleanliness, and efficiency would increase the tangible and psychological value of remaining resident in the UK.
Changing the tone of public discourse is equally important. There is a long-standing cultural undercurrent in Britain that views overt success with suspicion or disdain. In recent years, political and media rhetoric has hardened this sentiment, particularly around tax and wealth. By acknowledging the legitimate contributions of wealth creators - whether through tax, philanthropy, or business growth - policymakers could foster a more balanced climate in which success is not resented but encouraged.
Introducing targeted incentives could provide a practical lever for retention and attraction. This might include time-limited tax reliefs for returnees, innovation-based residency options for global entrepreneurs, or more generous treatment of capital investment and succession planning. Other countries are not shy about offering tailored tax arrangements to attract high-value residents. If the UK wishes to compete, it will need to be similarly agile and clear in its messaging.
In summary, retaining wealth in the UK will require more than slogans about fairness or broad tax hikes. It will demand clarity of purpose, technical reform, and a cultural shift towards recognising the value, not just the cost, of success.
Conclusion.
The migration of millionaires from the UK underscores the delicate balance between equitable taxation and maintaining an environment conducive to wealth creation and retention. As the UK develops its post-Brexit identity and economic strategy, addressing the concerns of its affluent residents will be essential to sustaining a robust and inclusive economy.
What’s next?
Wherever you are in the UK, we invite you to book a free initial consultation with one of our experienced financial advisers. Whether you’re concerned about the economic outlook, managing your investments, planning for retirement, or better understanding pensions, we provide expert advice tailored to your needs. Based in Tunbridge Wells, Kent, we proudly serve clients nationwide.
Locally, we serve clients across Kent, including Ashford, Maidstone, Sevenoaks and Tonbridge. In East Sussex, we have clients in Bexhill, Crowborough, Eastbourne, Hastings, Heathfield and Uckfield.
Don't forget, this article offers general financial information and should not be taken as personal advice. Remember that investments and pensions can go up and down in value, so you could get back less than you put in. Tax rules can change and will depend on your individual circumstances.