In recent years, a global shift in wealth has taken hold as high-net-worth individuals (HNWIs) look to relocate in response to changing tax policies, regulatory landscapes, and lifestyle opportunities. According to a Business Insider article based on data from Henley & Partners, a record-breaking 6,700 millionaires are expected to move to the UAE in 2024. This migration trend reflects the significance of tax policy as a driving force behind these moves and hints at a broader competition among countries to attract the ultra-wealthy.

Why Are Millionaires Leaving?

In many cases, the exodus of wealthy individuals from countries like the United Kingdom, France, and China is the direct result of tax reforms and rising regulatory pressures:

1. The United Kingdom – The UK has traditionally been a haven for wealthy foreigners, offering its "non-domiciled" or "non-dom" tax regime, which allowed foreign nationals to avoid UK taxes on overseas income. However, with recent tax policy proposals aimed at eliminating or severely limiting this non-dom status, many HNWIs are reconsidering their residency. The Labour Party, for instance, has proposed increasing taxes on capital gains, specifically targeting carried interest—a tax treatment frequently utilized by investment managers. Such proposals have sent a clear signal that the UK is becoming less welcoming to those who depend on tax efficiency. As a result, the UK is projected to lose around 9,500 millionaires in 2024 alone.
2. France – Political movements advocating for increased taxes on the wealthy have also gained traction in France. In the early 2000s, the French wealth tax triggered a substantial exodus of HNWIs. Today, with both far-left and far-right factions supporting new wealth taxes, wealthy individuals in France are once again considering relocation options. These looming policies are pushing HNWIs to seek more predictable and tax-friendly destinations.
3. China – China has seen a marked outflow of wealthy individuals as well, with around 15,200 millionaires expected to leave in 2024. Tightening domestic regulations, economic uncertainty, and stricter government control over financial resources are key factors. Many Chinese HNWIs are moving capital offshore to protect assets from increased scrutiny and regulation, with countries like the UAE, Singapore, and the United States proving to be attractive alternatives.

While tax policies are certainly pushing some to leave, other countries are seizing the opportunity to lure these individuals with favorable tax regimes, residency incentives, and quality-of-life upgrades. In Part 2 of this series, we’ll look at the importance of keeping track of residency and the financial consequences that can arise without diligent management.

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The Great Wealth Migration
View additional parts of this story here:

Part 1: Why Millionaires are Moving and How Tax Policies Influence Their Choices

Part 2   Tracking Residency: How Tools Like Chrono Simplify Compliance for High-Net-Worth Individuals

Part 3 New Wealth Destinations: Why Countries Like the UAE are Winning in the Era of Millionaire Migration

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