An IMGW News Report
In 2024, the United Kingdom faces an unprecedented exodus of its wealthiest residents, driven by soaring tax rates and the elimination of non-domicile status. Despite political uncertainties, affluent households are increasingly eyeing more tax-efficient jurisdictions for relocation. This article examines the top destinations enticing migrating millionaires.
The UK’s affluent are contending with frozen tax thresholds and reduced capital gains and dividend allowances, significantly impacting their earnings and investment gains. Henley & Partners’ analysis forecasts a staggering net loss of 9,500 millionaires from the UK this year, surpassing previous years’ figures.
Globally, 2024 mirrors this trend with an anticipated 128,000 millionaires relocating worldwide, surpassing the previous record set in 2023. Dominic Volek, Group Head of Private Clients at Henley & Partners, identifies this migration as pivotal, reflecting broader shifts in global economic dynamics.
Chief among favoured destinations for migrating millionaires is the United Arab Emirates (UAE), notably Dubai, offering zero income tax and a luxurious lifestyle. The UAE anticipates welcoming a record 6,700 millionaires this year, highlighting the appeal of robust investment migration programmes and favourable fiscal climates.
Beyond the Gulf, other attractive destinations include the tax-friendly jurisdictions of the United States (particularly Florida), Singapore, Canada, and Australia. Each offers unique residency or citizenship programmes designed to attract high-net-worth individuals seeking favourable tax environments.
As the UK grapples with increased fiscal pressures and policy changes, the departure of millionaires underscores a global realignment of wealth distribution. Nations prioritising investor-friendly policies are poised to benefit from this trend, prompting re-evaluations of national tax strategies and reshaping economic landscapes.
Projected net inflows of millionaires for 2024
Key takeaways from this trend include the record migration of millionaires from the UK in response to escalating tax burdens and policy changes, with the UAE, USA, Singapore, Canada, and Australia emerging as preferred relocation destinations. This global shift signals broader economic and geopolitical dynamics, compelling nations to adapt their fiscal policies to attract and retain high-net-worth individuals.