The UK is bracing for a record-breaking exit of 16,500 millionaires in 2025, the biggest millionaire outflow globally, according to Henley & Partners’ Wealth Migration Report.
New tax rules are being blamed for the forecast exodus. The end of non-domiciled resident (“non-dom”) tax breaks, higher capital gains tax, and changes to inheritance tax on overseas trusts are pushing high-net-worth individuals and families to leave the UK, the report finds.
Key beneficiary countries include Switzerland, Italy, Portugal and Greece.
The UK isn’t alone. China follows with an expected outflow of 7,800 millionaires, with France, Spain, and Germany also appearing in the top affected countries.
Prof. Trevor Williams, co-founder of FXGuard and former Chief Economist at Lloyds Bank Commercial Banking, notes that the UK has seen poor economic performance over the last decade and is the only W10 nation (the world’s 10 wealthiest countries) to experience negative millionaire growth.
“Since 2014, the number of resident millionaires in the UK dropped by 9%, compared with the W10’s global average growth of 40%,” he says.“Over the same period, the US saw a 78% increase in millionaires—the fastest wealth growth among the W10.”
Thinking of leaving for tax reasons? Speak to a financial planner first
If you’re considering relocating abroad to reduce your tax burden, it’s essential to weigh the full implications.
Relocating is a major decision, with complex financial, legal, and logistical consequences. A financial planner can help you:
Understand the full picture: Moving comes with challenges. A planner can help assess whether it’s the right choice based on your entire financial and personal situation.
Avoid surprises: Some countries have hidden costs, exit taxes, or high charges for transferring wealth. Not every move results in tax savings.
Plan for your assets: From pensions to trusts, proper planning ensures you don’t lose value in the move. Some countries lack direct equivalents to UK financial products.
Stay compliant: Tax laws vary widely. A financial planner can ensure you’re compliant in both jurisdictions, avoiding penalties and unnecessary stress.
Leaving the UK may seem like a quick fix, but without expert advice, it could lead to unexpected headaches. A planner ensures you make a smart, informed decision.