Mass Exodus of Ultra-Rich from the UK: Where Are They Heading?
Since April 2024, the abolition of the "non-domiciled" tax status in the UK has triggered a massive exodus of ultra-high-net-worth individuals, forced to rethink their tax residency in the face of heavier taxation, particularly on foreign income and inheritance rights. But the key question remains: where are they going?
According to Henley & Partners, 10,800 millionaires left the UK in 2024, doubling the figure from 2023. This exodus is not benefiting just any destination: ultra-rich individuals are favoring countries that offer advantageous tax regimes, political stability, and a high quality of life. Here are the main hubs of attraction identified:
Dubai: The Top Destination for British Tax Exiles
Dubai, in the United Arab Emirates, has become the go-to destination for British tax exiles. The city-state offers virtually zero income tax, a luxurious lifestyle, and a strategic geographic location attractive to global entrepreneurs. Several British billionaires, including Lakshmi Mittal, have already opted for Dubai.
In 2024, the growth of residence and business registrations by ultra-high-net-worth British individuals exploded, according to Henley & Partners. The absence of wealth tax and a reinforced welcoming policy explain this success.
Switzerland: A Timeless Favorite
Switzerland retains its attractiveness thanks to its confidentiality agreements, economic and political stability, and advantageous tax regime, particularly in certain cantons for foreign residents. Geneva and Zurich remain prized cities for their infrastructure, security, and quality of life.
France and Monaco: A Compromise for Some
For some, particularly those from European backgrounds, France and the Principality of Monaco represent an interesting compromise. Monaco remains an ultra-privileged destination with zero income tax, although real estate is extremely expensive. France, on the other hand, attracts with specific tax regimes for new foreign residents (e.g., the "impatrié" regime), despite a generally high tax pressure.
The United States: A Fiscal Haven for Some
Despite a relatively high national tax rate, some wealthy individuals choose states like Florida (Miami), where there is no state income tax. New York remains an uncontested global financial hub for those who want to maintain a foothold in international business. Intra-American mobility allows for a balance between professional life and tax optimization.
Singapore and Hong Kong: Strategic Hubs for Asia-Focused Ultra-Rich
For ultra-high-net-worth individuals oriented towards Asian markets, Singapore and Hong Kong remain strategic choices. These financial hubs offer competitive taxation, a good quality of life, and easy access to emerging economies in the region.
