Introduction
The United Kingdom is on track to lose more high-net-worth individuals (HNWIs) in 2025 than at any point in its modern history. According to new data from Henley & Partners, an estimated 16,500 millionaires will depart the UK this year, driven largely by sweeping tax reforms and the removal of non-domicile advantages. This wave of capital flight underscores how tax policy can directly reshape global wealth migration trends.
Background: End of Non-Domicile Status
For decades, Britain’s non-domicile regime allowed wealthy foreigners to reside in the country without paying tax on overseas income. This system attracted thousands of international elites, from oligarchs to tech entrepreneurs, cementing London’s reputation as a global financial hub.
However, the government’s recent decision to phase out non-dom status and impose stricter inheritance and income taxes has transformed the calculus for the wealthy. Critics of the reform claim that it undermines the UK’s ability to remain competitive, especially as rival jurisdictions court investors with tax-friendly residency schemes.
Destinations of Choice
The latest projections show that millionaire migrants are increasingly looking to Southern Europe and the Middle East:
- Italy: Its flat tax regime of €100,000 annually on foreign income has drawn wealthy individuals seeking predictability.
- Portugal: Despite tightening its Golden Visa rules, Portugal continues to attract retirees and investors with lifestyle advantages.
- Greece: Recently streamlined tax incentives for foreign pensioners have boosted its popularity.
- United Arab Emirates: Dubai and Abu Dhabi remain magnets due to zero income tax, business-friendly regulations, and global connectivity.
- United States: Particularly Florida and Texas, where low state taxes appeal to mobile millionaires.
Implications for the UK Economy
The outflow of high-net-worth individuals is not merely symbolic. Wealthy residents contribute disproportionately through property purchases, luxury consumption, and capital investment. Losing thousands of such individuals risks reducing tax revenues while weakening the London luxury housing market and private financial services industry.
Moreover, the reputational damage could be long-lasting. If London ceases to be perceived as the default “safe haven” for global wealth, it may struggle to maintain its status as Europe’s premier financial hub.
A Global Competition for Wealth
The UK’s experience is not unique. Countries worldwide are actively revising tax and immigration laws to win the competition for global capital. From Italy’s flat tax to Singapore’s ultra-elite investor programs, governments understand that millionaire migration is a fluid market.
For investors, the message is clear: wealth mobility is increasingly dictated by taxation as much as by security or lifestyle.
Editor’s Note
The UK’s projected millionaire exodus in 2025 demonstrates how policy shifts can rapidly alter global migration flows. For investors considering relocation, the trend underscores the need to carefully compare not only residency requirements but also tax regimes across jurisdictions. At WealthShield Asia, we recommend monitoring Southern Europe and the Gulf as emerging hotspots for wealth migration.
