Another IMGW News Report
Global Trends: Follow the Money
Recent changes in tax policies and security perceptions are driving a notable trend among high-net-worth individuals (HNWIs): a shift away from traditional financial centres towards emerging hubs. Key among these centres is Dubai, which has seen a surge in affluent migrants attracted by its favourable tax environment and perceived stability.
In the United Kingdom, reforms to the longstanding non-domicile regime, in effect for over two centuries, are reshaping wealth migration patterns. These changes have contributed to a significant outflow of wealth, with projections indicating a loss of 9,500 millionaires in 2024 alone—an increase from the previous year’s figure of 4,200 departures. The Henley Private Wealth Migration Report 2024 underscores how tax policies and regulatory adjustments are influencing decisions among affluent families to seek alternative jurisdictions.
“Global migration of millionaires signals a significant reconfiguration of wealth and influence on a global scale. As affluent individuals navigate an increasingly interconnected world, jurisdictions offering stability, security, and favourable tax environments are poised to continue attracting substantial flows of wealth and talent in the foreseeable future”
Conversely, the United Arab Emirates (UAE) has emerged as a prime destination for wealth migration, expecting to attract 6,700 affluent migrants by year-end. This influx is predominantly driven by individuals relocating from the UK and Europe, drawn to Dubai’s appealing tax incentives and stable environment for investment and residency.
David Bailin, a prominent figure in global wealth management, identifies three primary motivations guiding these migration trends: asset security, tax considerations, and opportunities for diversified global investments. Heightened instability and tax burdens in traditional financial hubs like the UK are prompting affluent families to explore jurisdictions offering more favourable conditions.
The broader economic and geopolitical landscape also plays a crucial role in this phenomenon, described by Dominic Volek of Henley & Partners as the “great millionaire migration.” This trend reflects broader shifts in global economic dynamics and underscores the impact of geopolitical tensions, economic uncertainties, and social instability on wealthy individuals’ relocation decisions.
Micha Emmett, CEO of CS Global Partners, highlights the fundamental role of asset protection and economic stability in domicile choices for wealthy families. These factors contribute to a declining attractiveness of the UK relative to competitors like the UAE and Singapore, where economic prospects and regulatory frameworks are perceived as more conducive to wealth preservation and growth.
In summary, the global migration of millionaires signals a significant reconfiguration of wealth and influence on a global scale. As affluent individuals navigate an increasingly interconnected world, jurisdictions offering stability, security, and favourable tax environments are poised to continue attracting substantial flows of wealth and talent in the foreseeable future.