Henley & Partners, a UK-based consultancy specializing in migration for high-net-worth individuals, projects that 128,000 millionaires will relocate from their home countries in 2024, surpassing the previous record of 120,000 in 2023. This number is expected to rise to 135,000 in 2025, a significant increase from the 51,000 millionaires who moved in 2013. The consultancy attributes this surge to a combination of factors, including tax reasons, geopolitical tensions, wars, economic uncertainty, and social unrest.
The United Kingdom, home to the third-largest population of dollar millionaires globally, is anticipated to experience a substantial net loss of 9,500 high-net-worth individuals (HNWIs) in 2024, second only to China’s projected loss of 15,200 HNWIs. This decline marks an 8 percent drop over the past decade, contrasting with the growth observed in other countries. Germany and France have seen increases of 15 percent and 14 percent, respectively, while Australia, Canada, and the US have experienced more significant growth rates of 35 percent, 29 percent, and 62 percent.
Political instability and changes in economic policies are driving these migration patterns. Henley & Partners notes that the UK, once a prime destination for relocating millionaires from the 1950s to 2000, is now rapidly losing its appeal due to economic and political turmoil, as well as tax measures. The UK’s inheritance tax and the abolition of a favourable tax regime for wealthy foreigners, set to take effect in April 2025, are contributing factors. Additionally, the current Labour government’s decision to scrap the 20 percent VAT exemption for children attending expensive private schools further diminishes the UK’s attractiveness.
Countries benefiting from this exodus include the United Arab Emirates (UAE), the United States (US), and Singapore. The UAE, with its zero income tax and strategic location, is the world’s top destination for migrating millionaires, expecting a record 6,700 wealthy individuals, primarily from the UK and Europe. The US is projected to welcome 3,800 millionaires, while Singapore will see 3,500. Canada and Australia follow, with net inflows of 3,200 and 2,500, respectively.
Other European countries like Italy, Switzerland, Greece, and Portugal are also among the top 10 for net millionaire inflows, with Japan rounding out the list with 400 wealthy migrants. The Netherlands does not appear in either list.
The changing tax climate in Europe is also influencing migration patterns. Many countries are phasing out tax benefits for millionaires, although some still maintain a positive migration balance. France’s recent political shift has created uncertainty among wealthy individuals, while changes in Portugal and Norway have made these countries less attractive. Italy plans to double the flat tax on foreign income for the super-rich, and Switzerland has proposed a 50 percent inheritance tax on estates above 50 million Swiss francs.
