Reports are buzzing: the UK is expected to see a significant outflow of millionaires this year, potentially more than any other country in the world. While some analyses suggest these numbers might be overblown, the general sentiment among the super-rich seems to be shifting. So, why are some of Britain’s wealthiest individuals apparently deciding to seek greener pastures? Let’s delve into the reasons.

The Elephant in the Room: Tax, Tax, Tax

For many of the ultra-rich, tax policies are a major, if not the major, deciding factor in where they choose to live. The UK has recently seen, and is continuing to see, significant shifts in its tax landscape, which appears to be a primary driver of this potential exodus.

• The End of “Non-Dom” Status: This is a huge one. For almost a century, the UK’s “non-domiciled” tax status allowed individuals living in the UK but claiming domicile elsewhere to avoid paying UK tax on their overseas income and gains, unless that money was brought into the UK. This was a massive draw for global wealth. As of April 2025, this status is being phased out, with a new residence-based system taking its place. This means that after a certain period (currently four years for new arrivals, with a transition period for existing non-doms), residents will be taxed on their worldwide income, regardless of where it’s earned or whether it’s remitted to the UK. This change affects not just billionaires, but also entrepreneurs and professionals with international income streams.
• Inheritance Tax (IHT) Shake-Up: The UK’s 40% inheritance tax is already one of the highest in Western Europe, but new proposals and changes are making it even more impactful. Critically, some reforms are looking to extend IHT to cover the foreign assets of long-term residents. For families focused on preserving generational wealth, this is a significant deterrent.
• Capital Gains Tax (CGT): Concerns about rising capital gains tax rates also loom large. If the wealthy sell assets, they face a tax bill, and any increases here make the UK less attractive for investment and wealth accumulation.
• Other Tax Increases and Speculation: Beyond these major changes, there have been concerns about increased National Insurance contributions, potential VAT on private school fees, and other levies that add to the overall tax burden for affluent individuals and families. The speculation of further tax hikes in future budgets, including the possibility of a “wealth tax” (a direct tax on accumulated assets), only adds to the unease and has been explicitly mentioned by Downing Street advisors as a potential driver of further departures.

The feeling among many wealthy individuals is that the UK is becoming an “increasingly hostile environment for wealth preservation.” The constant changes and perceived instability in the tax regime lead to a lack of confidence, prompting some to seek jurisdictions with more predictable and favourable tax environments.

Beyond the Tax Bill: Other Contributing Factors

While tax is a dominant theme, it’s not the only reason the rich might be reconsidering their UK base.

• Economic Performance: The UK’s economy has faced a challenging decade, with slower growth compared to some other major economies. Some analyses suggest the UK is the only nation among the world’s 10 wealthiest that has seen negative millionaire growth in recent years. A stagnant economy can mean fewer new opportunities for wealth creation and investment.
• Declining London Stock Exchange (LSE): Once a global powerhouse, the LSE’s importance has reportedly dwindled, with a significant number of delistings in recent years. This can reduce its appeal as a base for businesses and investors.
• Quality of Public Services: Anecdotal evidence and some reports suggest a perception of deteriorating public services in the UK, particularly in healthcare. While the wealthy can often access private alternatives, a strong public infrastructure can still contribute to overall quality of life and perceived stability.
• Safety Concerns: Increasing safety concerns, especially in major cities, are also cited by some as a reason for relocation.
• Eroding Global Status: While London remains a significant global city, the combined effects of Brexit, economic performance, and a shifting global financial landscape might be leading to a perception that the UK’s overall global standing and competitiveness as a hub for the ultra-wealthy are diminishing. Nearby financial hubs like Paris, Dubai, and Amsterdam are growing in influence.
• Political Instability and Uncertainty: Frequent changes in government policy and the ongoing political discourse around wealth and taxation can create an environment of uncertainty that deters long-term planning for high-net-worth individuals. The prospect of further tax reforms by a Labour government has particularly heightened these concerns for some.

Where Are They Going? The New Havens for Wealth

So, if they’re leaving the UK, where are the rich heading? Several destinations are rolling out the red carpet:

• The UAE (especially Dubai): This consistently tops the list, attracting thousands of millionaires each year. Its zero-income tax policy, attractive “golden visa” rules, luxury lifestyle, and growing financial hub status are major draws.
• Italy, Portugal, and Greece: These Southern European nations are becoming increasingly popular due to favourable tax regimes (e.g., Italy’s special flat-tax scheme for HNWIs), lifestyle appeal, and active investment migration programs.
• Switzerland: Known for its stability, privacy, and relatively low taxes for the wealthy, it remains a strong contender.
• Singapore: As a major Asian financial hub, it attracts wealth with its low tax rates and robust economy.
• Mauritius and Malta: Smaller nations that have successfully attracted wealthy migrants through favourable tax policies and investment opportunities.
• USA: While it has its own tax complexities, the sheer scale of opportunity and innovation in the US, particularly in tech, continues to draw in wealth.

The Impact of a “Wealth Exodus”

While the exact numbers and the degree to which tax is the only driver are debated, a significant outflow of wealthy individuals could have several implications for the UK:

• Loss of Tax Revenue: The most immediate concern is the potential reduction in tax contributions from these high earners. While the abolition of non-dom status aims to increase revenue, if a substantial number leave, the net effect could be negative.
• Reduced Investment and Philanthropy: Wealthy individuals are often significant investors in businesses, property, and startups, and they are also major contributors to charitable causes. Their departure could lead to a decline in these areas.
• Impact on Luxury Industries: Businesses catering to the ultra-wealthy – from luxury goods and high-end real estate to private financial and legal services – could see a downturn, potentially leading to job losses.
• Damage to Reputation: The perception of the UK as a less attractive place for wealth preservation and investment could harm its long-term standing as a global financial centre.

Conclusion: Why Everyone Else Might Consider Looking Abroad Too

When the ultra-wealthy start leaving, it’s often a canary in the coal mine, signaling broader issues that can eventually affect everyone. While their reasons might be primarily financial, the underlying currents that push them away – economic uncertainty, concerns about public services, and a sense of declining opportunity – are increasingly relevant to professionals and even working-class people in the UK.

Here’s why others might increasingly look to follow suit:

• Cost of Living Crisis: While the rich focus on tax, for many others, it’s simply the soaring cost of living. Housing, energy, and everyday essentials in the UK continue to squeeze budgets, making it harder to save or even live comfortably. Many European countries, while not without their own cost pressures, can offer a better quality of life for a lower expenditure, particularly outside major capital cities.
• Stagnant Wages: For a significant portion of the population, real wages have stagnated for years, failing to keep pace with inflation. Moving to countries with higher average salaries for specific professions, or a better work-life balance for the same pay, becomes an attractive option.
• Job Opportunities & Skills Shortages Abroad: Just like the UK has skills gaps, so do other nations – and they are often actively recruiting. Countries like Germany, Canada, Australia, and New Zealand have strong demand for skilled professionals in healthcare, tech, engineering, and trades. These countries often offer clear visa pathways for those with in-demand skills, regardless of their net worth.
• Better Public Services & Social Support: While the wealthy opt for private healthcare and schools, many professionals and working-class families rely on public services. If the perception of these services declines in the UK, moving to countries with robust, well-funded public health systems, education, and social safety nets becomes a strong draw.
• Work-Life Balance: Many European nations, in particular, prioritise work-life balance more explicitly than the UK. This can mean more generous holiday allowances, shorter working weeks, better parental leave, and a greater emphasis on leisure time, which appeals to those looking for a healthier lifestyle.
• Sense of Opportunity and Optimism: If the economic outlook feels constrained and opportunities seem limited at home, seeking a country with a more dynamic job market, better career progression, or simply a more optimistic future can be incredibly motivating. For younger generations especially, the global landscape offers a chance to build wealth and experience life beyond the current UK challenges.
• European Freedom of Movement (for Irish Citizens): For those with even distant Irish heritage, gaining Irish citizenship (as discussed in your previous article!) offers a direct route back into the EU’s freedom of movement, unlocking vast opportunities that are now closed to most other UK citizens.

While the motivations of the ultra-wealthy might seem far removed from everyday concerns, their decisions often highlight systemic pressures. For a growing number of professionals and working-class individuals in the UK, the thought of “doing what the rich do” – seeking out better economic prospects and a higher quality of life elsewhere – is becoming less of a distant dream and more of a practical consideration. The global job market is increasingly interconnected, and for many, the passport to a better future might just be an outbound flight ticket.