The rich are leaving the UK due to high taxes. Where the wealthy are going

The UK now tops the list of destinations where millionaires are moving out for the first time as tax reforms continue to drive record numbers away from the country.

High-net worth individuals (HNWIs) have faced several tax clampdowns in recent months, from changes to capital gains and inheritance tax to extra stamp duty rates and the end of non-dom status.

Many changes have come in under the new Labour government and chancellor Rachel Reeves but the previous Tory regime has also hit the wealthy by first freezing tax thresholds and reducing capital gains and dividend allowances.

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It seems like the wealthy have hit breaking point and the latest Wealth Migration Report by advisory firm Henley & Partners forecasts that the UK will lose 16,500 millionaires this year as they flock to more tax-friendly environments.

The figure is more than double the anticipated –7,800 net outflow from second place China.

It is the first time a European country has topped the table which has been dominated by Chinese exits for the past decade.

Juerg Steffen, chief executive of Henley & Partners, said: “2025 marks a pivotal moment. For the first time in a decade of tracking, a European country leads the world in millionaire outflows. This isn’t just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom, and stability lie elsewhere. The long-term implications for Europe and the UK’s economic competitiveness and investment appeal are significant.”

Overall, a record 142,000 millionaires are projected to relocate internationally this year across the world, according to the report.

MoneyWeek recently spoke to a millionaire who is leaving the UK because of the non-dom tax status abolishment.

Why are the rich leaving the UK?

Even before the end of non-dom status in April 2025, the UK tax burden had hit record levels, making living in the country less appealing to those with lots of wealth.

Henley & Partners suggested the latest surge is driven in part by sweeping tax reforms in last year’s Budget, including changes to capital gains tax and inheritance tax as well as VAT being added to private school fees.

Professor Trevor Williams, chairman and co-founder at FXGuard and former chief economist at Lloyds Bank commercial banking, highlighted that the UK’s economy has performed poorly over the past decade and said it is the only nation in world’s 10 wealthiest countries (W10) that has seen negative millionaire growth.

He said: “Since 2014, the number of resident millionaires in the UK dropped by 9% compared with the W10’s global average growth of +40%. Over the same period, the US saw a 78% increase in millionaires — the fastest wealth growth among the W10.”

Beyond higher taxes, Williams adds that Brexit has made the UK less attractive for wealthy individuals.

He said: “The UK’s attractiveness to the wealthy has also been eroded by the loss of some Euroclear activities since Brexit, leading to a shift elsewhere of market participants and capital.

“Furthermore, the UK has not rolled back financial regulation, which was anticipated by many when it left the EU’s single market and customs union. Instead, in a move widely criticised, the government shut down the UK Tier 1 Immigrant Investor Program in 2022, thereby eliminating an entry point for millionaires. This is in strong contrast to many other countries that have been acting to attract wealthy individuals.”

The UK isn’t the only country struggling to hold onto its wealthy population though.

The report shows that European Union heavyweights France, Spain, and Germany are also expected to see net HNWI losses in 2025, as are Ireland, Norway and Sweden.

This is attributed to affluent Europeans relocating to more investor-friendly hubs on the continent.

Where are the rich relocating to?

While the UK’s tax take is at a record level, there are plenty of locations looking to attract wealthy individuals with so-called golden visas in return for investment in government projects as well as businesses or residential developments.

One of the most popular locations is the United Arab Emirates (UAE), including Dubai, according to Henley & Partners.

Residents benefit from zero income tax as well as a luxury lifestyle. The UAE is poised to welcome a record net inflow of 9,800 millionaires this year alone, including Brits.

The UAE lets people apply for its golden residence visa by either buying a property worth a minimum of AED 2 million (approximately $550,000) in cash or through a loan from specific local banks.

There is also an option to purchase property off-plan through approved real estate companies.

Other top destinations for migrating millionaires include the USA, with a net inflow of 7,500 including expats attracted to Florida.

It comes as President Donald Trump recently launched a Gold Card that will provide US residency for $5 million.

Italy and Switzerland are also expected to attract high numbers of millionaires due to relatively low cost residence by investment schemes.

Montenegro is seeing the highest growth though, with a 124% increase in resident millionaires.

HNWIs can get residency with no minimum investment after five years and it benefits from low taxes and possible entry into the European Union, the Henley & Partners report said.

Singapore, Canada and Australia also remain popular destinations.

Singapore has an investment for residency programme to back either a Singapore Economic Development Board fund, new companies or to establish a family office in the country.

You can get Canadian residency by setting up a business or raising money through an angel investment or a venture capital fund.

Meanwhile, rather than seeking investment, Australia welcomes prominent and internationally-recognised talent from certain sectors such as energy.

Should the wealthy stay in the UK?

The end of nom-dom status and higher taxes may make the UK less attractive for wealthy people.

But there are arguments for sticking with the UK.

The government should be more predictable and stable compared with the US, plus London’s prime property market is well established and remains attractive as a safe haven amid volatile stock markets.

Tom Bill, head of UK residential research at Knight Frank, suggests more could even be done to attract overseas investors, especially as the Treasury wants more investment in British assets.

He said: “As the financial pressure intensifies on the government, which keeps borrowing costs higher for everyone, could it introduce a new measure with a politically-palatable name like a ‘UK investor visa’?

“Donald Trump recently unveiled plans for a ‘gold card’ visa in the US, which will cost $5 million. Elsewhere, the global landscape is a mix of countries winding schemes down as others ramp them up.”

He suggests this could help alleviate falling tax revenues as wealthy buyers exit the UK.

There are signs that the UK may loosen its wealth restrictions and Reeves is rumoured to be considering changing inheritance tax rules for non-doms that currently mean assets owned globally will eventually form part of an estate.