An estimated 142,000 millionaires are set to relocate to a new country this year, with the UK set to lose a record 16,500 in the coming 12 months.
With a decade of poor economy performance and sweeping tax reforms introduced by the Conservative and Labour government, affluent individuals are seeking tax-friendly jurisdictions like the UAE, Monaco and Malta.
According to the latest Henley Private Wealth Migration Report, the UK is set to lose twice as many high net worth individuals as China, and ten times as many as Russia.
Dr Juerg Steffen, CEO at 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.”
Plans to axe the non-dom status were suggested by the previous Tory government but were announced by the Treasury in April, meaning that overseas earnings for wealthy people living in the UK will be taxed.
Under new rules put forward by chancellor Rachel Reeves, wealthy foreigners who have lived in Britain for more than four years will pay UK income and capital gains taxes. If they remain in the country for at least 10 years, their worldwide assets would be subject to inheritance tax at 40 per cent.
Meanwhile, Nigel Farage’s Reform party have announced plans to introduce a ‘Robin Hood tax’, which would allow wealthy people to pay a one-off fee of £250,000 to attract the wealthy back to the UK.
Professor Trevor Williams, chair and co-founder at FXGuard and former chief economist at Lloyds Bank Commercial Banking, says the UK’s economy has performed poorly over the past decade, and is the only nation in the world’s 10 wealthiest countries (W10) that has seen negative millionaire growth.
“Since 2014, the number of resident millionaires in the UK dropped by -9 per cent compared with the W10’s global average growth of +40 per cent. Over the same period, the US saw a 78 per cent increase in millionaires — the fastest wealth growth among the W10.”
The UK is not the only European country to see a reduction in its millionaires, with France, Spain and Germany expected to see an exodus of 800, 500 and 400 respectively.
Meanwhile, Switzerland, Italy, Portugal and Greece are set to attract record numbers of affluent individuals, largely driven by favourable tax regimes, lifestyle appeal and active investment migration programmes.
Andrew Amoils, Head of Research at New World Wealth, said: “If one reviews the fastest growing wealth markets in the world over the past decade, it is noticeable that most of these countries are either popular destinations for migrating millionaires — such as Montenegro, the UAE, Malta, the USA, and Costa Rica — or emerging market tech hubs like China, India, and Taiwan.
“This demonstrates the importance of millionaire migration in driving new wealth formation in a country.”
Attractive golden visa options has ensured that the UAE remains the world’s most sought-after destination for millionaires, with Saudi Arabia also on the rise.
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